Table of Contents
Executive Summary
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- The rising holiday market will mean growth for car hiring
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- Figure 1: Volume forecast of holiday car hire abroad, 2019-19
- Figure 2: Annual average exchange rates for Sterling vs. euro and US$, 2010-15
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- Figure 3: Unleaded petrol cost per litre, UK, January 2012-December 2014
- Three car hire brands dominate the market
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- Figure 4: Top four holiday car hire companies used abroad in the past three years, December 2014
- Just over a third of holidaymakers will book a hire car on holiday
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- Figure 5: Holiday car hire usage within the last three years, by age, December 2014
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- Figure 6: Top two preferences when hiring a car on holiday abroad, December 2014
Issues and Insights
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- Hidden costs continue to be an industry hot topic
- The facts
- The implications
- Short-term city lending will grow in popularity
- The facts
- The implications
- Peer-to-peer car lending
- The facts
- The implications
The Market – What You Need to Know
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- Car hires volumes are expected to rise
- The faster growth of package holidays may limit car hire growth in the long term
- Low petrol prices are helping the market
- Portugal is the most expensive destination to hire a car
Market Size and Forecast
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- Gradual growth forecast to 2019
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- Figure 7: Volume of holiday car hires abroad by UK residents, 2009-19
- Desire to experience more highlights growth opportunities
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- Figure 8: Volume forecast of holiday car hire abroad, 2009-19
- Car hire companies will struggle to get customers to pay more
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- Figure 9: Overseas holiday volume, value and average expenditure, 2009-14
- More exotic and far-flung destinations are looking attractive
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- Figure 10: Overseas holiday volume, by mode of transport, 2009-14
- Car ownership rates remain steady
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- Figure 11: Car ownership in Great Britain, 2009-13
Market Drivers
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- Package holidays are growing faster than independent holidays
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- Figure 12: Volume of overseas package and independent holidays, 2009-14
- Favourable exchange rates support the holiday market
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- Figure 13: Annual average exchange rates for Sterling, 2010-15
- Petrol prices dropped in the UK and abroad during 2014
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- Figure 14: Petrol and diesel cost per litre, January 2012-December 2014
- Figure 15: Unleaded petrol cost per litre, January 2012-December 2014
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- Figure 16: Petrol price, by European country, 2011-14
- European short break holidays prove popular
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- Figure 17: Top 20 overseas holiday destinations, 2009-14
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- Figure 18: Top 10 independent holiday destinations, by number of visits, 2009-14
- Figure 19: Average car rental costs in top 13 ONS holiday destinations, July 2014
Channels to Market
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- Nearly one in seven book online
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- Figure 20: How last holiday car hire was booked, December 2014
- Almost a third use online brokers
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- Figure 21: How last online holiday car hire booking was made, December 2014
Key Players – What You Need to Know
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- The top three brands dominate the market
- Most companies offer basic loyalty schemes and booking apps but few are innovative
- There is a market potential in hybrid and electric hire cars
Market Share
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- Three market players dominate the car hire market
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- Figure 22: Holiday car hire companies used abroad in the past three years, December 2014
- Loyalty schemes offer free weekends and faster check-ins
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- Figure 23: Holiday car hire company loyalty schemes and rewards, April 2015
- Most companies have a smartphone booking app
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- Figure 24: Holiday car hire company iOS apps, April 2015
Launch Activity and Innovation
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- The main car hire companies are expanding rapidly
- Hybrid cars are being introduced in city centres
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- Figure 25: Attitudes towards holiday car hire, by age, December 2014
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- Figure 26: Features sought from a new car, December 2014
- Two brands invest in city car sharing schemes
- easyCar launches a peer-to-peer car lending service
The Consumer – What You Need to Know
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- Younger consumers are the most likely to hire a car for short periods of time
- Convenience is a key factor in the hiring process
- The low cost and car culture of the US pushes it to the top of the list of hire destinations
Hire Car Usage
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- Car hire companies are not reaching new customers
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- Figure 27: Holiday car hire usage within the last three years, December 2014
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- Figure 28: Holiday car hire usage within the last three years, by age, December 2014
- Younger consumers are the most likely to book a hire car during a short break
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- Figure 29: Length of holiday booked by those who have hired a car in the last three years, December 2014
- Nearly one in six independent holidaymakers will book a hire car
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- Figure 30: Type of holiday booked by those who have hired a car in the last three years, December 2014
Motivations for Booking a Hire Car
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- Consumers hire cars abroad to allow them to explore
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- Figure 31: Motivations behind booking a hire car, December 2014
- Convenience factors are key reasons behind hiring a car
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- Figure 32: Motivations behind booking a hire car, December 2014
- The US is where consumers are most likely to hire a car
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- Figure 33: Hire car use, by country visited, December 2014
Hire Car Preferences
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- Car hire customers want to have a hassle-free pick-up
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- Figure 34: Preferences when booking a hire car, December 2014
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- Figure 35: Preference for booking a hire car for a shorter period of time, by age, December 2014
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Definitions
- Fan chart forecast
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