BEIJING -- China's car rental industry is experiencing significant growth, driven by the increasing popularity of self-driving tours in the thriving tourism market.

CAR Inc, a leading domestic car rental service provider, has reported a surge in bookings, with more than 90 percent of its vehicles being rented by customers during the peak period of the five-day May Day holiday, which concluded on Sunday.

The robust demand for car rentals mirrors the surge in travel during the holiday, with an estimated 1.36 billion intercity trips recorded, of which over 80 percent were made by road, according to the Ministry of Transport.

CAR Inc's data also indicates a growing preference for exploring lesser-known destinations among travelers, as they opt for off-the-beaten-track experiences in small cities. Lower-tier cities, including the scenic city of Yuyao in Zhejiang province, dominate the list of cities with the highest car rental rates in China.

Car rental services are particularly popular among young travelers, with over 60 percent of CAR Inc's customers being born in or after the 1990s.

Furthermore, young drivers show a preference for renting new energy vehicles, as the supply of these vehicles doubled during the holiday period.

The service sector has played a significant role in China's economic growth, as evidenced by the remarkable performance of leasing and business services in the first quarter of this year. Official data showed a 10.8-percent year-on-year increase in the value added by this sector in the quarter.