Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Consumer belt tightening likely to have a negative effect on holiday car rentals
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- Figure 1: Forecast volume of holiday car hires abroad by UK residents, 2012-22
- Rising inflation means consumers are feeling the pinch
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- Figure 2: UK average weekly earnings (excluding bonuses)* vs CPIH inflation, percentage change year on year, 2012-17
- The consumer
- The proportion of holidaymakers renting cars drops
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- Figure 3: Holiday car hire usage, 2014-17
- Most holiday car rentals are direct bookings
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- Figure 4: How last holiday car hire was booked, May 2017
- Majority of car hires through airlines/travel agents are in packages
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- Figure 5: Holiday car hire packages, May 2017
- Consumers want more transparency
- Road trips that focus on multiple holiday experiences
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- Figure 6: Holiday car behaviours, May 2017
- What we think
Issues and Insights
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- Practicality and price are key, but many are open to luxury car hire
- The facts
- The implications
- Consumers have concerns about renting cars
- The facts
- The implications
- Consumers want more transparency
- The facts
- The implications
The Market – What You Need to Know
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- A good year for holiday car hire in 2015 and 2016
- A slowdown expected in 2017 and 2018
- Rising inflation will put a squeeze on consumers’ finances
- However, consumers are still relatively confident…
- …but this is heavily skewed towards older generations
Market Size and Forecast
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- Slowdown in growth expected as consumers rein in their spending
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- Figure 7: Total overseas car rental volume, 2012-22
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- Figure 8: Forecast volume of holiday car hires abroad by UK residents, 2012-22
- Strong growth in overseas trips in 2016 but slowdown expected
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- Figure 9: Overseas holiday market volume and value*, 2011-21
- Consumers travelling on holidays by ferry fell in 2016
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- Figure 10: Overseas holidays taken by UK residents, by mode of transport, 2015 and 2016
- Forecast methodology
Market Background
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- Inflation hits consumers’ pockets
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- Figure 11: UK average weekly earnings (excluding bonuses)* vs CPIH inflation, percentage change year on year, 2012-17
- The Pound remains low against the euro and the US Dollar
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- Figure 12: US Dollar and euro against the Pound Sterling, May 2016-17
- However, despite the doom and gloom, consumers are still optimistic…
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- Figure 13: Consumer finances, January 2014-April 2017
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- Figure 14: Consumer finances, by age, April 2017
- …but consumers are relatively optimistic about the future
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- Figure 15: Outlook for personal finances for the coming year, January 2009-January 2017
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- Figure 16: Outlook for personal finances for the coming year, by age, April 2017
- Despite tight finances, consumers are still keen on buying holidays
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- Figure 17: Plans to book a holiday in the next three months, June 2012-April 2017
- Growth in package holidays could affect car rentals
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- Figure 18: Forecast of UK overseas volume, package and independent holidays, 2011-21
- A boost for Spain, Italy, Portugal and Greece
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- Figure 19: Top 15 overseas holiday destinations, by number of trips, 2011-16
- Independently booked trips to Spain helped drive car rentals in 2016
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- Figure 20: Top 10 independently booked overseas holiday destinations, by number of trips, 2011-16
- Post Office research reveals cheapest holiday destinations
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- Figure 21: Post Office Holiday Cost Index, 2017
- Figure 22: Petrol cost per litre in Europe 2016 and change 2015-16
- Good news for holiday car renters; oil prices likely to remain low
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- Figure 23: Europe Brent Spot Price FOB* (Dollars per Barrel), April 2012-April 2017
Key Players – What You Need to Know
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- Usage of Europcar by UK consumers increases
- MyTripCar aims to make the rental experience more transparent
- Skurt – An Uber-style car rental app that supplies fleet cars on demand
- FlightCar shuts down after selling technology to Mercedes
- Google Maps uses historical data to gauge parking difficulty
- Dubai set to launch pilotless air-taxis
Market Share
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- Europcar enjoys an increase in market share
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- Figure 24: Holiday car rental market share, 2014-17
- A look at the “big three” car rental brands
- Europcar
- Hertz
- Avis Budget Group
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- Figure 25: Holiday car rental market share, 2014-17
Launch Activity and Innovation
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- MyTripCar aims to make the rental experience more transparent
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- Figure 26: MyTripCar website
- Skurt – An Uber-style car rental app that supplies fleet cars on demand
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- Figure 27: Skurt car rental service, May 2017
- FlightCar shuts down after selling technology to Mercedes
- Google Maps uses historical data to gauge parking difficulty
- Dubai set to launch pilotless air-taxis
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- Figure 28: Driverless air-taxis, 2017
The Consumer – What You Need to Know
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- The proportion of holidaymakers renting cars drops
- Most holiday car rentals are direct bookings
- Consumers want more transparency
- Holidaymakers open to luxury car hire
- Road trips that focus on multiple holiday experiences have appeal
- Expert and consumer review sites are important for renters
Holiday Car Hire Usage
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- The proportion of holidaymakers renting cars drops
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- Figure 29: Holiday car hire usage, 2014-17
- Demographic breakdown; who is cutting back?
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- Figure 30: Holiday car hire usage, by age, March 2016 and May 2017
- Holiday car renters hire around two cars in a three-year period
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- Figure 31: Mean and median of holiday car rentals, May 2017
- Reasons for not hiring a car
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- Figure 32: Reasons for not hiring a car, May 2017
Holiday Car Booking Channels
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- Most holiday car rentals are direct bookings
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- Figure 33: How last holiday car hire was booked, May 2017
- Majority of car hires through airlines/travel agents are in packages
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- Figure 34: Holiday car hire packages, May 2017
- Figure 35: Holiday car hire attitudes, May 2017
Holiday Car Hire Attitudes
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- Consumers want more transparency
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- Figure 36: Holiday car hire attitudes, May 2017
- Holidaymakers open to luxury car hire
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- Figure 37: Holiday car hire attitudes, May 2017
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- Figure 38: Hawaii-based car rental company Envy allows customers to rent sports cars from dealerships
Holiday Car Hire Behaviours
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- Road trips that focus on multiple holiday experiences
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- Figure 39: Holiday car hire behaviours, May 2017
- Consumers have concerns about renting cars
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- Figure 40: Holiday car hire attitudes, May 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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