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Holiday Car Hire - UK - June 2018

“Holidaymakers are highly cautious when dealing with car hire companies – many worry about the possibility of hidden/additional costs. However, technological innovation is creating some exciting developments in this mature market, and brands will need to move towards a more transparent, customer-friendly way of operating.”
– Fergal McGivney, Senior Travel Analyst

This report looks at the following areas:

  • Electric cars appeal to younger generations
  • How much of a threat is Uber to rental firms?

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Table of contents

  1. Overview

    • What you need to know
      • Scope of this Report
      • Executive Summary

          • The market
            • Sluggish growth in the holiday car rental market
              • Figure 1: Forecast volume of holiday car hires abroad by UK residents, 2013-23
            • British consumers are more positive about their finances
              • Companies and brands
                • Europcar most popular amongst UK consumers
                    • Figure 2: Usage of car hire companies, December 2014 and March 2018
                  • The consumer
                    • The proportion of Brits hiring cars is in decline
                      • Figure 3: Holiday car hire usage, May 2017-March 2018
                    • USA, France and Spain are key holiday car rental markets
                      • Figure 4: Countries visited while hiring a car, March 2018
                    • Families are key targets but are price sensitive
                      • Figure 5: Types of holidays taken when hiring a car, March 2018
                    • Opportunities in the peer-to-peer sharing market
                      • Is the rise of short breaks making it more difficult to rent cars?
                        • Figure 6: Length of time last holiday car was rented for, March 2018
                      • The scope for peer-to-to peer rentals
                        • Figure 7: Attitudes towards holiday car hire, March 2018
                      • What we think
                      • Issues and Insights

                        • Electric cars appeal to younger generations
                          • The facts
                            • The implications
                              • How much of a threat is Uber to rental firms?
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Sluggish growth in the holiday car rental market
                                      • Overseas holiday volume remains resilient
                                        • Consumers more positive about their current finances…
                                          • …and their future finances…
                                            • …as wages increase and unemployment falls
                                            • Market Size and Forecast

                                              • Sluggish growth in the holiday car rental market
                                                • Figure 8: Total overseas car rental volume, 2013-23
                                                • Figure 9: Forecast volume of holiday car hires abroad by UK residents, 2013-23
                                              • Overseas volume figures have remained resilient but growth is slowing
                                                • Figure 10: Future plans for holidays, December 2017
                                                • Figure 11: Domestic holiday market volume versus overseas market volume (trips), 2012-22
                                              • Forecast methodology
                                              • Market Drivers

                                                • British consumers are more positive about their current finances
                                                  • Figure 12: Trends in how respondents would describe their financial situation, March 2014-April 2018
                                                • …and are optimistic about their future finances
                                                  • Figure 13: Trends in consumer sentiment for the coming year, March 2013-April 2018
                                                • A brighter outlook for the UK economy
                                                  • More consumers plan to book holidays in the next three months
                                                    • Figure 14: Plans to book holidays in the next three months, March 2014-April 2018
                                                  • Rising oil price could boost electric/hybrid car rentals
                                                    • Figure 15: Price of Europe Brent Spot Price FOB (Dollars per Barrel), May 2014-April 2018
                                                  • The Pound recovers against the Dollar
                                                    • Figure 16: Pound Sterling versus US Dollar and the Euro, May 2015-May 2018
                                                  • Uber and Lyft offer cheaper hassle-free alternatives
                                                    • The move towards greater transparency will benefit the car rental market
                                                    • Companies and Brands – What You Need to Know

                                                      • Avis moves into second place in terms of usage by UK consumers
                                                        • Europcar acquires Goldcar to focus on the low-cost market
                                                          • Hertz looks towards 2019 for growth
                                                            • Hyrecar offers peer-to-peer sharing
                                                            • Market Share

                                                              • Europcar, Avis and Hertz top the list
                                                                  • Figure 17: Usage of car hire companies, December 2014 and March 2018
                                                              • Competitive Strategies

                                                                • Europcar
                                                                  • Avis
                                                                    • Hertz
                                                                      • Enterprise
                                                                      • Launch Activity and Innovation

                                                                        • Silvercar eases costs for families renting its high-end Audies
                                                                          • Blacklane shows that car rentals are not all about driving yourself
                                                                            • Fair acquires Skurt to leverage its technology
                                                                              • Hyrecar offers peer-to-peer sharing
                                                                              • The Consumer – What You Need to Know

                                                                                • The proportion of UK consumers hiring cars is in decline
                                                                                  • USA, France and Spain are the key holiday car rental markets
                                                                                    • Families are key targets but are price sensitive
                                                                                      • 4-7 days is the most common rental period
                                                                                        • Consumers want well-known trustworthy car rental brands
                                                                                          • Cheaper electric cars have strong appeal
                                                                                            • How much of a threat is Uber to rental firms?
                                                                                            • Holiday Car Hire

                                                                                              • The proportion of UK consumers hiring cars is in decline
                                                                                                • Figure 18: Holiday car hire, May 2017-March 18
                                                                                              • Car hire as a gateway to new experiences and the CaaS model
                                                                                                • Figure 19: Holiday car hire, by age, March 2016-March 2018
                                                                                              • USA, France and Spain are the key holiday car rental markets
                                                                                                • Authentic experiences appeal
                                                                                                    • Figure 20: Countries visited while hiring a car, March 2018
                                                                                                • Types of Holiday Taken

                                                                                                  • Families are key targets but are price sensitive
                                                                                                    • Figure 21: Types of holidays taken when hiring a car, March 2018
                                                                                                  • Opportunities in the peer-to-peer sharing market
                                                                                                    • Combining holiday types can be key for rental companies
                                                                                                      • Beach holidaymakers looking for more than a ‘fly and flop’ break
                                                                                                        • Special interest-based partnerships
                                                                                                        • Length of Time and Spend

                                                                                                          • Is the rise of short breaks making it more difficult to rent cars?
                                                                                                            • Figure 22: Length of time last holiday car was rented for, March 2018
                                                                                                            • Figure 23: Statistics on length of time holiday car was hired for, March 2018
                                                                                                          • Spending on holiday car hire
                                                                                                            • Policy changes could boost credit card purchases
                                                                                                              • Figure 24: Spending per day on holiday car rental, March 2018
                                                                                                              • Figure 25: Spending per holiday on car rental, March 2018
                                                                                                          • Attitudes towards Holiday Rental Cars

                                                                                                            • Consumers want well-known trustworthy car rental brands
                                                                                                              • Cost is the number one consideration for the majority…
                                                                                                                • …meaning cheaper electric cars have strong appeal
                                                                                                                  • How much of a threat is Uber to rental firms?
                                                                                                                    • The Uber revolution
                                                                                                                      • Responding to Uber’s transparency and convenience
                                                                                                                        • The scope for peer-to-to peer rentals
                                                                                                                          • Figure 26: Attitudes towards holiday car hire, March 2018
                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                          • Abbreviations
                                                                                                                            • Consumer research methodology
                                                                                                                            • Appendix – Market Size and Forecast

                                                                                                                              • Forecast methodology
                                                                                                                                  • Figure 27: Best- and worst-case forecast for total UK passenger uplift, 2017-22

                                                                                                                              Holiday Car Hire - UK - June 2018

                                                                                                                              US $2,552.20 (Excl.Tax)