Holiday Car Hire - UK - May 2015

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The rising holiday market will mean growth for car hiring
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
Figure 3: Unleaded petrol cost per litre, UK, January 2012-December 2014
Three car hire brands dominate the market
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
Figure 5: Holiday car hire usage within the last three years, by age, December 2014
Figure 6: Top two preferences when hiring a car on holiday abroad, December 2014
ISSUES AND INSIGHTS
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
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
Gradual growth forecast to 2019
Figure 7: Volume of holiday car hires abroad by UK residents, 2009-19
Desire to experience more highlights growth opportunities
Figure 8: Volume forecast of holiday car hire abroad, 2009-19
Car hire companies will struggle to get customers to pay more
Figure 9: Overseas holiday volume, value and average expenditure, 2009-14
More exotic and far-flung destinations are looking attractive
Figure 10: Overseas holiday volume, by mode of transport, 2009-14
Car ownership rates remain steady
Figure 11: Car ownership in Great Britain, 2009-13
MARKET DRIVERS
Package holidays are growing faster than independent holidays
Figure 12: Volume of overseas package and independent holidays, 2009-14
Favourable exchange rates support the holiday market
Figure 13: Annual average exchange rates for Sterling, 2010-15
Petrol prices dropped in the UK and abroad during 2014
Figure 14: Petrol and diesel cost per litre, January 2012-December 2014
Figure 15: Unleaded petrol cost per litre, January 2012-December 2014
Figure 16: Petrol price, by European country, 2011-14
European short break holidays prove popular
Figure 17: Top 20 overseas holiday destinations, 2009-14
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
Nearly one in seven book online
Figure 20: How last holiday car hire was booked, December 2014
Almost a third use online brokers
Figure 21: How last online holiday car hire booking was made, December 2014
KEY PLAYERS – WHAT YOU NEED TO KNOW
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
Three market players dominate the car hire market
Figure 22: Holiday car hire companies used abroad in the past three years, December 2014
Loyalty schemes offer free weekends and faster check-ins
Figure 23: Holiday car hire company loyalty schemes and rewards, April 2015
Most companies have a smartphone booking app
Figure 24: Holiday car hire company iOS apps, April 2015
LAUNCH ACTIVITY AND INNOVATION
The main car hire companies are expanding rapidly
Hybrid cars are being introduced in city centres
Figure 25: Attitudes towards holiday car hire, by age, December 2014
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
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
Car hire companies are not reaching new customers
Figure 27: Holiday car hire usage within the last three years, December 2014
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
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
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
Consumers hire cars abroad to allow them to explore
Figure 31: Motivations behind booking a hire car, December 2014
Convenience factors are key reasons behind hiring a car
Figure 32: Motivations behind booking a hire car, December 2014
The US is where consumers are most likely to hire a car
Figure 33: Hire car use, by country visited, December 2014
HIRE CAR PREFERENCES
Car hire customers want to have a hassle-free pick-up
Figure 34: Preferences when booking a hire car, December 2014
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
Data sources
Abbreviations
Definitions
Fan chart forecast