Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Holiday Car Hire - UK - October 2010

This report analyses market trends and consumer attitudes towards holiday car hire, investigating the core market factors, strengths and weaknesses, innovations, consumer dynamics and key players in the industry.

  • Following strong growth in holiday car hire abroad since 2005, the number of hires dropped by an estimated 9% to 2.9 million in 2009 before starting to recover slowly in 2010. The relative affluence of customers helped to soften the blow of recession, as overseas holiday numbers as a whole fell by 16% in 2009 and have dropped further in 2010.
  • Despite prospects for renewed growth, holiday car hire remains a niche product – approximately one in 17 people who went on holiday abroad over the past 12 months hired a vehicle. However for longer (non short-break) holidays, car hire penetration is roughly comparable with use of ferries and more popular than both Eurotunnel and Eurostar crossings.
  • Better fleet management and utilisation rates enabled many suppliers to emerge strongly from the recession. For consumers however, prices have risen thanks to reductions in supply and the growing costs of motoring overseas. In 2010, unleaded petrol prices rose by varying amounts across Europe (with Sweden’s 24% increase the highest) and, as a result of operators cutting capacity, average prices have risen significantly across the most popular destinations.
  • Travel industry and demographic trends are working in favour of holiday car hire – the shift towards independently booked travel and away from packages is continuing, for example. In addition, the core customer demographic – consumers from socio-economic group AB – is forecast to grow at double the rate of the population as a whole over the next five years. The relative affluence of this group opens up significant opportunities to offer (for example) premium grade vehicles and VIP services such as chauffeur-driven trips.
  • Six in ten customers spend between £101 and £250 per hire. £101-£150 is the most popular price bracket with around a quarter of customers paying this amount, while three in ten hirers pay more than £250. Seven days is the most common rental period, accounting for a fifth of hires, while three in ten last between one and three days. Half of all customers tend to go for the cheapest available option and are unwilling to exceed paying £200 per week.
  • Amongst consumers who have hired a car abroad in the last three years, over two thirds made bookings online a month or more before travelling and nine in ten made advance bookings via the internet. Just over half of customers book a month or more before travelling; around three in ten book within a month of travelling; and two in ten books on arrival at their holiday destination.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key issues
        • Definitions
          • Abbreviations
          • Future Opportunities

            • Exploring the city of the future
              • Clubbing together
              • Market in Brief

                • Volume falls but industry emerges stronger
                  • Independent/AB growth trends favour holiday hire
                    • Stress of driving deters others
                      • Late bookings increase
                        • No hidden costs
                          • Challenge of differentiation
                          • Internal Market Environment

                            • Key points
                              • Overseas holidays yet to recover
                                • Figure 1: Domestic and overseas holiday volume, 2005-10
                              • 36% of adults going abroad
                                • Figure 2: Percentage of adults booking UK and overseas holidays, 2010
                              • All regions drop but long-haul more resilient
                                • Figure 3: Outbound holiday visits, by region visited, 2005-09
                              • Spain falls but still a quarter of overseas holidays
                                • Figure 4: Outbound holiday visits, by country visited, 2005-09
                              • Independent shift continues
                                • Figure 5: Inclusive holidays versus independent holidays, by volume, 2004-09
                              • Large potential pool for car hire
                                • Figure 6: Breakdown of household ownership of cars, by gender, age and socio-economic group, 2010
                              • Overseas driving costs
                                • Figure 7: Cost of three days’ car hire/unleaded 95 petrol in 20 holiday destinations, 2008-10*
                              • Best value driving
                                • Going green
                                • Broader Market Environment

                                  • Key points
                                    • Mixed signals
                                      • Figure 8: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
                                      • Figure 9: Consumer Confidence Index: September 2009-September 2010
                                    • Spending priorities – travel bounces back
                                      • Figure 10: Expenditure priorities, 2005-10
                                    • Population trends: three key age groups growing
                                      • Figure 11: Trends in the age structure of the UK population, by gender, 2005-15
                                    • Continuing AB growth good for holiday hire
                                      • Figure 12: Forecast adult population trends, by socio-economic group, 2005-15
                                    • Exchange rates
                                      • Figure 13: Average daily exchange rates against Sterling as at 15 September 2005-10
                                  • Competitive Context

                                    • Key points
                                      • A niche product
                                        • Figure 14: Main methods of travel used for holidays/short breaks abroad, 2010
                                      • Air travel falls furthest
                                        • Figure 15: Total overseas trips, by mode of transport, 2004-09
                                    • Strengths and Weaknesses in the Market

                                        • Strengths
                                          • Industry has rationalised in recession
                                            • Shift to independent travel continues
                                              • AB population growth
                                                • Development of sustainable alternatives
                                                  • Weaknesses
                                                    • Double-dip dangers
                                                      • Stress of driving curtails demand
                                                        • Demographic base may narrow further
                                                          • Lack of brand loyalty and differentiation
                                                          • Who’s Innovating?

                                                            • Key points
                                                              • Mobile car booking
                                                                • By the hour
                                                                  • Are we there yet?
                                                                    • Virtual drives
                                                                      • Road safety
                                                                        • Beyond dispute
                                                                        • Market Size and Forecast

                                                                          • Key points
                                                                            • Market falls but well placed for recovery
                                                                              • Figure 16: Volume of car hire trips abroad by British residents, 2005-15
                                                                          • Market Share

                                                                            • Key points
                                                                              • Three major groups
                                                                                  • Figure 17: Overseas holiday car hire usage over the last three years, by brand, July 2010
                                                                              • Companies and Products

                                                                                  • Car hire suppliers
                                                                                    • Alamo
                                                                                      • Avis Europe plc
                                                                                        • Enterprise Rent-A-Car
                                                                                          • Europcar (UK) Ltd
                                                                                            • Figure 18: Key Europcar financials, 2005-09
                                                                                          • Hertz Europe
                                                                                            • Sixt Kenning Ltd
                                                                                              • Car hire brokers and price-comparison sites
                                                                                                • Auto Europe
                                                                                                  • Carrentals.co.uk
                                                                                                    • CarTrawler
                                                                                                      • Holiday Autos
                                                                                                      • Brand Elements

                                                                                                        • Key points
                                                                                                          • Brand map
                                                                                                              • Figure 19: Attitudes towards and usage of various holiday car hire brands, August 2010
                                                                                                            • Brand qualities of holiday car hire brands
                                                                                                              • Reliability the greatest concern
                                                                                                                • Figure 20: Personalities of various holiday car hire brands, August 2010
                                                                                                              • Experience of holiday car hire brands
                                                                                                                • Car hire still niche
                                                                                                                  • Figure 21: Consumer usage of various holiday car hire brands, August 2010
                                                                                                                • Brand consideration for holiday car hire brands
                                                                                                                  • easyCar most considered
                                                                                                                    • Figure 22: Consideration of various holiday car hire brands, August 2010
                                                                                                                  • Brand satisfaction for holiday car hire brands
                                                                                                                    • Enterprise most excellent, Hertz most positive
                                                                                                                      • Figure 23: Satisfaction with various holiday car hire brands, August 2010
                                                                                                                    • Brand commitment to holiday car hire brands
                                                                                                                      • Enterprise has edge on loyalty
                                                                                                                        • Figure 24: Commitment to various holiday car hire brands, August 2010
                                                                                                                      • Brand intentions for holiday car hire brands
                                                                                                                        • Enterprise has best retention
                                                                                                                          • Figure 25: Future usage intentions for various holiday car hire brands, August 2010
                                                                                                                        • Brand recommendation for holiday car hire brands
                                                                                                                          • Market leader Hertz most recommended
                                                                                                                            • Figure 26: Recommendation of various holiday car hire brands, August 2010
                                                                                                                          • Enterprise Rent-A-Car
                                                                                                                            • What the consumer thinks
                                                                                                                              • Figure 27: Attitudes towards the Enterprise Rent-A-Car brand, August 2010
                                                                                                                            • easyCar
                                                                                                                              • What the consumer thinks
                                                                                                                                • Figure 28: Attitudes towards the easyCar brand, August 2010
                                                                                                                              • Hertz
                                                                                                                                • What the consumer thinks
                                                                                                                                  • Figure 29: Attitudes towards the Hertz brand, August 2010
                                                                                                                              • Holiday Car Hire Usage

                                                                                                                                • Key points
                                                                                                                                  • Strong AB bias
                                                                                                                                    • Figure 30: Holiday car hire usage, July 2010
                                                                                                                                • Cost and Duration

                                                                                                                                  • Key points
                                                                                                                                    • Three quarters hire for a week or less
                                                                                                                                      • Figure 31: Holiday car hire cost, July 2010
                                                                                                                                      • Figure 32: Holiday car hire duration, July 2010
                                                                                                                                  • Booking and Holiday Type

                                                                                                                                    • Key points
                                                                                                                                      • Two thirds book online
                                                                                                                                        • Figure 33: Car hire booking, July 2010
                                                                                                                                      • Fragmented holiday types
                                                                                                                                        • Figure 34: Type of holiday car was hired on, July 2010
                                                                                                                                    • Reasons for Not Hiring

                                                                                                                                      • Key points
                                                                                                                                        • Need to relax
                                                                                                                                          • Figure 35: Reasons for never hiring a car, July 2010
                                                                                                                                      • Attitudes towards Holiday Car Hire

                                                                                                                                        • Key points
                                                                                                                                          • Transparency and flexibility most important
                                                                                                                                            • Figure 36: Attitudes towards holiday car hire, July 2010
                                                                                                                                          • Brand indifference
                                                                                                                                            • Appealing to youth
                                                                                                                                            • Targeting Opportunities

                                                                                                                                              • Key points
                                                                                                                                                • Target groups
                                                                                                                                                  • Figure 37: Holiday car hire target groups, July 2010
                                                                                                                                                • Budget Branders (17% of car hirers or 3.0 million adults)
                                                                                                                                                  • Demographic profile:
                                                                                                                                                    • Localists (29% of car hirers or 5.1 million adults)
                                                                                                                                                      • Demographic profile:
                                                                                                                                                        • Car Specific (26% of car hirers or 4.5 million adults)
                                                                                                                                                          • Demographic profile:
                                                                                                                                                            • Indifferent (28% of car hirers or 4.9 million adults)
                                                                                                                                                              • Demographic profile:
                                                                                                                                                              • Appendix – Holiday Car Hire Usage

                                                                                                                                                                  • Figure 38: Most popular holiday car hire usage, by demographics, July 2010
                                                                                                                                                                  • Figure 39: Next most popular holiday car hire usage, by demographics, July 2010
                                                                                                                                                              • Appendix – Cost and Duration

                                                                                                                                                                  • Figure 40: Holiday car hire cost, by holiday car hire duration – 1-4 days, July 2010
                                                                                                                                                                  • Figure 41: Holiday car hire cost, by holiday car hire duration – 5-14 days, July 2010
                                                                                                                                                                  • Figure 42: Holiday car hire duration, by holiday car hire cost – <£250, July 2010
                                                                                                                                                                  • Figure 43: Holiday car hire duration, by holiday car hire cost – £251+, July 2010
                                                                                                                                                                  • Figure 44: Holiday car hire cost, by demographics, July 2010
                                                                                                                                                                  • Figure 45: Holiday car hire duration – 1-4 days, by demographics, July 2010
                                                                                                                                                                  • Figure 46: Holiday car hire duration – 5-14 days, by demographics, July 2010
                                                                                                                                                              • Appendix – Booking and Holiday Type

                                                                                                                                                                  • Figure 47: Car hire booking, by most popular holiday car hire usage, July 2010
                                                                                                                                                                  • Figure 48: Car hire booking, by next most popular holiday car hire usage, July 2010
                                                                                                                                                                  • Figure 49: Car hire booking, by holiday car hire cost, July 2010
                                                                                                                                                                  • Figure 50: Type of holiday car was hired on, by grouped holiday car hire durations, July 2010
                                                                                                                                                                  • Figure 51: Type of holiday car was hired on, by holiday car hire durations – 2-5 days, July 2010
                                                                                                                                                                  • Figure 52: Type of holiday car was hired on, by holiday car hire duration – 7-14 days, July 2010
                                                                                                                                                                  • Figure 53: Most popular car hire booking, by demographics, July 2010
                                                                                                                                                                  • Figure 54: Type of holiday car was hired on, by demographics, July 2010
                                                                                                                                                              • Appendix – Reasons for Not Hiring

                                                                                                                                                                  • Figure 55: Most popular reasons for never hiring a car abroad, by demographics, July 2010
                                                                                                                                                                  • Figure 56: Next most popular reasons for never hiring a car abroad, by demographics, July 2010
                                                                                                                                                              • Appendix – Attitudes towards Holiday Car Hire

                                                                                                                                                                  • Figure 57: Attitudes towards holiday car hire, by most popular holiday car hire usage, July 2010
                                                                                                                                                                  • Figure 58: Attitudes towards holiday car hire, by next most popular holiday car hire usage, July 2010
                                                                                                                                                                  • Figure 59: Attitudes towards holiday car hire, by holiday car hire cost, July 2010
                                                                                                                                                                  • Figure 60: Attitudes towards holiday car hire, by type of holiday car was hired on, July 2010
                                                                                                                                                                  • Figure 61: Most popular attitudes towards holiday car hire, by demographics, July 2010
                                                                                                                                                                  • Figure 62: Next most popular attitudes towards holiday car hire, by demographics, July 2010
                                                                                                                                                              • Appendix – Targeting Opportunities

                                                                                                                                                                  • Figure 63: Attitudes towards holiday car hire, by target groups, July 2010
                                                                                                                                                                  • Figure 64: Holiday car hire usage, by target groups, July 2010
                                                                                                                                                                  • Figure 65: Holiday car hire cost, by target groups, July 2010
                                                                                                                                                                  • Figure 66: Holiday car hire duration, by target groups, July 2010
                                                                                                                                                                  • Figure 67: Car hire booking, by target groups, July 2010
                                                                                                                                                                  • Figure 68: Type of holiday car was hired on, by target groups, July 2010
                                                                                                                                                                  • Figure 69: Target groups, by demographics, July 2010

                                                                                                                                                              Companies Covered

                                                                                                                                                              • Accor
                                                                                                                                                              • Air Berlin GmbH & Co. Luftverkehrs KG
                                                                                                                                                              • Air France
                                                                                                                                                              • Airbus S.A.S.
                                                                                                                                                              • Alamo Rent a Car LLC
                                                                                                                                                              • Aldi Stores Ltd (UK & Ireland)
                                                                                                                                                              • Alitalia - Linee Aeree Italiane S.p.A.
                                                                                                                                                              • ASAP Ventures
                                                                                                                                                              • Asda Group Ltd
                                                                                                                                                              • Auto Europe LTD
                                                                                                                                                              • Avis Budget Group, Inc.
                                                                                                                                                              • Avis Europe plc
                                                                                                                                                              • Best Western International Inc.
                                                                                                                                                              • BMW (GB) Ltd
                                                                                                                                                              • British Airways Plc
                                                                                                                                                              • British Sky Broadcasting Group plc (BSkyB)
                                                                                                                                                              • Budget Rent A Car System Inc.
                                                                                                                                                              • CarRentals.com
                                                                                                                                                              • Center Parcs
                                                                                                                                                              • Click Travel Limited
                                                                                                                                                              • Clickair SA
                                                                                                                                                              • Co-operative Group
                                                                                                                                                              • Enterprise Rent-A-Car Company
                                                                                                                                                              • Europcar International
                                                                                                                                                              • Eurostar UK Ltd
                                                                                                                                                              • Eurotunnel Shuttle Services
                                                                                                                                                              • Facebook, Inc.
                                                                                                                                                              • Fiat Auto
                                                                                                                                                              • Fly International
                                                                                                                                                              • FlyBE
                                                                                                                                                              • Ford Motor Company Limited (UK)
                                                                                                                                                              • Freeview
                                                                                                                                                              • Google UK
                                                                                                                                                              • Government Actuary's Department (GAD)
                                                                                                                                                              • Hotelopia
                                                                                                                                                              • InterContinental Hotels Group PLC
                                                                                                                                                              • isango!
                                                                                                                                                              • J. Sainsbury
                                                                                                                                                              • Kantar Media
                                                                                                                                                              • lastminute.com plc
                                                                                                                                                              • Lidl (UK)
                                                                                                                                                              • LOT Polish Airlines
                                                                                                                                                              • Marks & Spencer
                                                                                                                                                              • Mercedes-Benz UK
                                                                                                                                                              • Microsoft Ltd (UK)
                                                                                                                                                              • mmO2 plc
                                                                                                                                                              • MyTravel Group plc
                                                                                                                                                              • National Car Rental
                                                                                                                                                              • National Lottery Commission
                                                                                                                                                              • Netto Foodstores Ltd
                                                                                                                                                              • Office for National Statistics
                                                                                                                                                              • Orange plc (UK)
                                                                                                                                                              • Porsche Cars Great Britain Ltd
                                                                                                                                                              • Post Office Limited
                                                                                                                                                              • Renault (UK) Ltd
                                                                                                                                                              • Ryanair Holdings plc
                                                                                                                                                              • Saga Holidays
                                                                                                                                                              • Sixt AG
                                                                                                                                                              • Sixti GmbH
                                                                                                                                                              • Solaris Mobile Limited
                                                                                                                                                              • Spanair S.A.
                                                                                                                                                              • Swiss International Airlines
                                                                                                                                                              • T-Mobile (UK) Ltd
                                                                                                                                                              • Tesco Plc
                                                                                                                                                              • The Hertz Corporation
                                                                                                                                                              • The Vanguard Group, Inc.
                                                                                                                                                              • Thrifty Car Rentals
                                                                                                                                                              • Transportes Aereos Portugueses, S.A.
                                                                                                                                                              • Travelocity.com L.P.
                                                                                                                                                              • Travelodge Hotels Inc.
                                                                                                                                                              • TUI UK
                                                                                                                                                              • Twitter, Inc.
                                                                                                                                                              • United Nations
                                                                                                                                                              • Virgin Atlantic Airways Limited
                                                                                                                                                              • Virgin Holidays
                                                                                                                                                              • Virgin Media Ltd
                                                                                                                                                              • Virgin Mobile
                                                                                                                                                              • VisitBritain
                                                                                                                                                              • VLM Airlines
                                                                                                                                                              • Vodafone Group Plc (UK)
                                                                                                                                                              • Waitrose
                                                                                                                                                              • Walt Disney Company, The
                                                                                                                                                              • Wm Morrison Supermarkets

                                                                                                                                                              Holiday Car Hire - UK - October 2010

                                                                                                                                                              US $2,672.70 (Excl.Tax)