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Car and Van Hire - UK - March 2010

The UK has experienced its severest recession since the 1940s and arguably car and van hire should be a market that would have felt the full effect of the recession as consumers cut back on discretionary spending with reduced car usage, less travelling and fewer UK holiday breaks.

Profitability in the car and van hire market is dependent upon car hire companies achieving maximised levels of fleet utilisation. If demand falls significantly then car hire companies are faced with a choice of either reducing hire rates to levels that stimulate demand and winning market share from competitors, or reducing the size of their vehicle fleets to achieve higher levels of utilisation.

The need to achieve maximised levels of utilisation of vehicle fleets increases pressure on hire rates, which results in a highly competitive price-led market. To avoid outright competition on price in terms of hire rates, hire companies can offer consumers value-added services and this has resulted in hire companies offering customer collection and delivery as well as competitive hire rates.

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Table of contents

  1. Issues in the Market

      • Key issues
        • Definition
          • Abbreviations
          • Future Opportunities

            • Renting rather than ownership
              • Leisure rather than utility?
              • Market in Brief

                • Increase in usage of car hire
                  • House moves and holidays underpin the market
                    • Recession raises demand?
                      • Car ownership costs increasing
                        • Car sharing is main innovation
                          • Rising market value
                            • Enterprise leads the market
                              • Owned outlets supported by franchising
                                • Future usage dependent on housing, holidays and partying
                                • Internal Market Environment

                                  • Key points
                                    • Usage of car and van hire experiences a slight upturn
                                      • Figure 1: Frequency of hiring a car in Britain for personal or business use in the last 12 months, 2009
                                      • Figure 2: Trends in car hire in Britain in the last 12 months, 2004-09
                                    • Private and business hire
                                      • Figure 3: Private and business car and van hire market, 2004-09
                                    • Car hire at home or abroad
                                      • Figure 4: Car hire in Britain or abroad in the last 12 months, 2009
                                    • Decline in households owning two cars
                                      • Figure 5: Household ownership of cars in the UK, 2004-09
                                    • Temporary boom in UK holidays?
                                      • Figure 6: Domestic and overseas holidays and expenditure, 2004-14
                                    • House prices and number of transactions in the UK
                                      • Figure 7: UK average house prices and housing transactions, 2004-09
                                    • A return to college
                                      • Figure 8: Number of full-time and part-time students* in Higher Education in the UK, 2004/05-2008/09
                                  • Broader Market Environment

                                    • Key points
                                      • The UK moves out of recession…just
                                        • Figure 9: GDP quarterly percentage change, 2004-09
                                      • Consumer priorities shift from spending to saving
                                        • Figure 10: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14
                                      • Rising affluence
                                        • Figure 11: Forecast adult population trends, by socio-economic group, 2004-14
                                      • Young families are the main growth opportunity
                                        • Figure 12: Trends in the age structure of the UK population, by gender, 2004-14
                                    • Competitive Context

                                      • Key points
                                        • Spending on personal transport
                                          • Figure 13: Spending on personal transport, at current prices, 2009
                                        • Car ownership becoming more expensive
                                          • Figure 14: Annual percentage change in transport costs, 2000-09
                                          • Figure 15: Price indices of new and used cars, 2000-09
                                        • Maintenance and fuel costs rising
                                          • Figure 16: Indices of personal transport prices, 2005-09
                                          • Figure 17: Trend in petrol and diesel pump prices, July 2000-July 2009
                                      • Strengths and Weaknesses in the Market

                                          • Strengths
                                            • Weaknesses
                                            • Who’s Innovating?

                                              • Key points
                                                • Car sharing – a growth opportunity?
                                                  • Hertz, Europcar and Enterprise enter car-sharing market
                                                    • Europcar’s green partnership with Fiat
                                                      • Streetcar adds a plug-in Prius to fleet
                                                        • GoGo offers electric car hire
                                                          • Hertz online check-in
                                                          • Market Size and Forecast

                                                            • Key points
                                                              • Figure 18: Car and van hire market*, 2004-14
                                                              • Figure 19: Car and van hire market, 2004-14
                                                            • Forecast
                                                              • Factors used in the forecast
                                                              • Market Share

                                                                • Key points
                                                                  • Figure 20: Brand shares* of the private car and van hire market, 2009
                                                                  • Figure 21: Brand shares of the private car and van hire market, 2009
                                                              • Companies and Products

                                                                  • Major players
                                                                    • Enterprise Rent-A-Car
                                                                        • Figure 22: Enterprise Rent-A-Car UK, key financials, 2007 and 2008
                                                                      • Europcar
                                                                          • Figure 23: Europcar UK Group Ltd, key financials, 2007 and 2008
                                                                        • National Car Rental
                                                                          • Hertz
                                                                              • Figure 24: Hertz UK Limited, key financials, 2007 and 2008
                                                                            • Avis
                                                                                • Figure 25: Avis Rent A Car Limited, key financials, 2007 and 2008
                                                                              • Sixt
                                                                                  • Figure 26: Sixt Kenning Limited, key financials, 2007 and 2008
                                                                              • Brand Communication and Promotion

                                                                                • Key points
                                                                                  • Figure 27: Main monitored media advertising expenditure on self-drive car rental/lease, 2005-09
                                                                                  • Figure 28: Advertising expenditure, by selected company*, 2005-09
                                                                                  • Figure 29: Analysis on adspend, by media type for major companies, 2009*
                                                                              • Channels to Market

                                                                                • Key points
                                                                                  • Figure 30: Number of UK outlets operated by car rental companies, 2009*
                                                                                • Car hire franchising
                                                                                  • Affiliate marketing
                                                                                      • Figure 31: Number of UK outlets operated by car rental companies, 2009
                                                                                  • The Consumer – Future Usage Reasons of Car and Van Hire

                                                                                    • Key points
                                                                                      • House moves driving the future of the market
                                                                                          • Figure 32: Reasons to hire a self-drive car, van or minibus in the future for non-business use, February 2010
                                                                                        • Affluent ABs most likely to use car and van hire
                                                                                        • The Consumer – What Consumers Want From Car Hire

                                                                                          • Key points
                                                                                            • Peace of mind foremost amongst hirers
                                                                                                • Figure 33: Important factors to hire a self-drive car, van or minibus in the future for non-business use, February 2010
                                                                                              • Insurance, mileage and surcharges matter most to future hirers
                                                                                              • The Consumer – Type of Hire and Benefits Wanted

                                                                                                • Key points
                                                                                                  • Usage segments
                                                                                                    • Figure 34: Reasons to hire a self-drive car, van or minibus in the future for non-business use, by important factors, February 2010
                                                                                                  • Usage benefits
                                                                                                    • Figure 35: Important factors to hire a self-drive car, van or minibus in the future for non-business use, by reasons to hire, February 2010
                                                                                                • Appendix – Future Usage Reasons For Car and Van Hire by Demographics

                                                                                                    • Figure 36: Reasons to hire a self-drive car, van or minibus in the future for non-business use, by demographic sub-group, February 2010
                                                                                                • Appendix – What Consumers Want From Car Hire by Demographics

                                                                                                    • Figure 37: Most popular important factors in hiring a self-drive car, van or minibus in the future for non-business use, by demographic sub-group, February 2010
                                                                                                • Appendix – Type of Hire and Benefits Wanted by Demographics

                                                                                                    • Figure 38: Reasons to hire a self-drive car, van or minibus in the future for non-business use, by segment, by demographic sub-group, February 2010
                                                                                                • Appendix – Hire Usage in Britain by Demographics

                                                                                                    • Figure 39: Car hire in Britain in the last 12 months, by demographic sub-group, 2009
                                                                                                • Appendix – Frequency of Business and Personal Hire by Demographics

                                                                                                    • Figure 40: Frequency of hiring a car in Britain for personal or business use in the last 12 months, by demographic sub-group, 2009
                                                                                                • Appendix – Car Hire Abroad by Demographics

                                                                                                    • Figure 41: Car hire abroad in the last 12 months, by demographic sub-group, 2009
                                                                                                • Appendix – Frequency of Car Hire Abroad by Demographics

                                                                                                    • Figure 42: Frequency of hiring a car abroad for personal or business use in the last 12 months, by demographic sub-group, 2009
                                                                                                • Appendix – Use of Car Hire in Britain or Abroad by Demographics

                                                                                                    • Figure 43: Car hire in Britain or abroad in the last 12 months, by demographic sub-group, 2009

                                                                                                Companies Covered

                                                                                                • Accor
                                                                                                • Alamo Rent a Car LLC
                                                                                                • Aldi Stores Ltd (UK & Ireland)
                                                                                                • Arnold Clark Automobiles Ltd
                                                                                                • Asda Group Ltd
                                                                                                • AUDI AG
                                                                                                • Automobile Association (AA)
                                                                                                • Avis Budget Group, Inc.
                                                                                                • Avis Europe plc
                                                                                                • Bayerische Motoren Werke AG (BMW)
                                                                                                • British Airways Plc
                                                                                                • Budget Rent A Car System Inc.
                                                                                                • China Southern Airlines
                                                                                                • Co-operative Group
                                                                                                • Deutsche Lufthansa AG
                                                                                                • easyCar
                                                                                                • Enterprise Rent-A-Car Company
                                                                                                • Europcar International
                                                                                                • Eurostar UK Ltd
                                                                                                • Expedia.co.uk
                                                                                                • Fiat Auto
                                                                                                • Ford Motor Company Limited (UK)
                                                                                                • Government Actuary's Department (GAD)
                                                                                                • Higher Education Statistics Agency
                                                                                                • Iberia, Líneas Aéreas de España SA
                                                                                                • Icelandair
                                                                                                • isango!
                                                                                                • J. Sainsbury
                                                                                                • J.D. Power and Associates
                                                                                                • Kia Motors UK Ltd
                                                                                                • Kingfisher Group
                                                                                                • KLM Royal Dutch Airlines
                                                                                                • Lake District National Park Authority
                                                                                                • Lidl (UK)
                                                                                                • Marks & Spencer
                                                                                                • MediaVest (Manchester) Ltd
                                                                                                • Mercedes-Benz UK
                                                                                                • Mondial Assistance Group
                                                                                                • National Car Rental
                                                                                                • Nectar
                                                                                                • Netto Foodstores Ltd
                                                                                                • Ogilvy Advertising
                                                                                                • Opodo Limited
                                                                                                • PricewaterhouseCoopers
                                                                                                • Renault (UK) Ltd
                                                                                                • Research in Motion Uk Ltd.
                                                                                                • Sixt AG
                                                                                                • Société Nationale des Chemins de Fer Français
                                                                                                • Tesco Plc
                                                                                                • The Hertz Corporation
                                                                                                • The Vanguard Group, Inc.
                                                                                                • Thrifty Car Rentals
                                                                                                • Toyota (GB) PLC
                                                                                                • Twitter, Inc.
                                                                                                • VisitBritain
                                                                                                • Volkswagen AG
                                                                                                • Volkswagen UK
                                                                                                • Waitrose
                                                                                                • Wm Morrison Supermarkets
                                                                                                • Zipcar, Inc.

                                                                                                Car and Van Hire - UK - March 2010

                                                                                                £1,995.00 (Excl.Tax)