UK Holiday Car Hire market report
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Holiday Car Hire market, and the behaviours, preferences and habits of the consumer.
Mintel has the answers you’re looking for
What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Scope of this Report
This Report covers holiday car hire abroad. It excludes any business use, any non-holiday leisure use and any use of car hire in the domestic market. Bookings may be made in the UK, but the primary use for a vehicle must be for a holiday abroad.
What you need to know
Mintel’s consumer research shows that the proportion of holidaymakers hiring cars while abroad has been in decline over the past year. Despite this, the market is still experiencing volume growth, due to the increase in the number of overseas holidays being taken overall. However, growth is slowing; Mintel expects the volume of cars hired by British holidaymakers abroad to grow by 2% in 2018 (compared to annual increases of 5.5% in 2016 and 3% in 2017), bringing the total to approximately 3.53 million hires. At the time of writing, the cost of holidaying in Europe is still more expensive due to the weak Pound. This will have curbed spending somewhat, hitting ancillary holiday products such as car hire.
On a more positive note, the Pound has recovered against the US Dollar which is good news for providers considering the US is a key market for holiday car hires. Consumer confidence is also rising; wages have finally started to outpace inflation and unemployment is at its lowest level since 1975.
Consumer budgets play a major role in this market, with cost of rentals being the most important factor for the majority (64%) when selecting a vehicle. This means that electric cars are an attractive option for price conscious consumers; 60% of car renters say they would choose an electric car over a petrol/diesel fuelled one if it saved them money.
In terms of attitudes towards holiday car hire, Mintel’s research finds that UK consumers are highly brand conscious. The vast majority of holiday car renters say they would only rent cars abroad from well-known brands, while most say they trust UKbased car rental companies more than ones abroad.
Expert analysis from a specialist in the field
Written by Fergal McGivney, a leading analyst in the Technology & Travel sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
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.
Technology & Travel Analyst
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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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* This is a sample representation of the report layout and does not reflect the research included in this report.
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