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Holiday Car Hire - UK - May 2012

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast volume of car hire trips abroad by UK residents, 2006-16
Market factors
Staycations stay in the driving seat
Figure 2: Domestic vs overseas holidays volume, 2006-11
Package holidays pick up share
Figure 3: Package holidays’ percentage share of all overseas holidays, 2006-11
Figure 4: Annual growth in holidays to Europe, package and independent holidays, 2010 and 2011
Car ownership drops
Figure 5: Percentage change in car ownership, 2009-11
Fuel costs rise in Europe
Figure 6: Increase in petrol and diesel prices in pence, by European country, 2010-11
UK population ages
Figure 7: Trends in the age structure of the UK population, 2011-16
Companies, brands and innovation
Figure 8: Holiday car hire usage in last three years, by brand, February 2012
The consumer
The car hirers
Figure 9: Holiday car hire usage, February 2012
Why non-hirers don’t hire
Figure 10: Most popular reasons for not hiring a car abroad, February 2012
Figure 11: Top three reasons for not hiring a car abroad, by growth in percentage agreement, 2010-12
What people think of holiday car hire
Figure 12: Attitudes towards holiday car hire, February 2012
What we think
ISSUES IN THE MARKET
What does the shift towards short-haul holiday destinations mean for operators?
Can car hire companies benefit from the rising market share of package holidays?
How can operators reassure those car hirers who are concerned their requirements will not be met?
How can operators harness current and developing in-car technology to boost overseas car hiring?
How should car hire companies respond to changing UK population dynamics?
FUTURE OPPORTUNITIES
Secret Secret
The Real Thing
INTERNAL MARKET ENVIRONMENT
Key points
Staycation trend stays in place
Figure 13: Domestic vs overseas holidays volume, 2006-11
Packages increase overseas share
Figure 14: Package holidays versus independent holidays, by volume, 2006-11
2011 – A turn to Europe
Figure 15: Outbound holiday visits, by region visited, 2006-11
Figure 16: Outbound holiday visits, EU Europe (15) vs elsewhere, 2006-11 and 2010-11
Figure 17: Top 20 overseas holiday destinations, by number of visits, 2006-11
Figure 18: Post Office Holiday Costs Barometer, 2012
Drivers face costs increase
Figure 19: Full driving licence holders, by age and gender, 2006-10
Figure 20: Consumer expenditure on car servicing and repair and motoring expenses, at current prices, 2006-11
Figure 21: Car ownership, 2009-11
Figure 22: Petrol and diesel price per litre, October 2009-March 2012
Figure 23: Petrol and diesel prices and increase from 2010, by European country, 2011
BROADER MARKET ENVIRONMENT
Key points
ABs, C2s on the rise
Figure 24: Forecast adult population trends, by socio-economic group, 2006-16
Ageing population
Figure 25: Trends in the age structure of the UK population, by gender, 2006-16
Figure 26: Forecast adult population trends, by lifestage, 2006-16
Figure 27: Trends in the age structure of the UK population, 2011-16
Return to recession
Figure 28: GDP quarterly percentage change, Q1 2006-Q1 2012
Figure 29: UK Consumer Confidence Index, January 2008-April 2012
Figure 30: UK Consumer Confidence Index, January 2011-March 2012
euro improvement
Figure 31: Annual average rates for Sterling, 2007-12
SatNav surge
Figure 32: Accessories in the main car, 2009-11
COMPETITIVE CONTEXT
Key points
Overseas holiday travel mode
Figure 33: Total overseas holidays, by mode of transport, 2006-11
Personal car over hire
Figure 34: Main methods of travel used by holidaymakers, 2011
WHO’S INNOVATING?
Key points
Peer-to-peer model growing
London looks to Paris for inspiration
Enterprise and Hertz go greener
Comparison sites go local and include insurance
Deliver and collect service reaches leisure market
24-hour express service
Give the gift of car hire credit
MARKET SIZE AND FORECAST
Key points
Car hire decline continues
Figure 35: Volume of car hire trips abroad by UK residents, 2006-16
Figure 36: Annual growth in holidays to Europe, package and independent holidays, 2010 and 2011
Frequency falls
Figure 37: Frequency of hiring a car abroad in the last 12 months, 2009-11
Forecast
Figure 38: Forecast volume of car hire trips abroad by UK residents, 2006-16
Forecast methodology
SEGMENT PERFORMANCE
Key points
Beach and city breaks are top choices
Figure 39: Type of holidays/short breaks taken in the last 12 months, 2009-11
Accommodation choice
Figure 40: Type of accommodation for holidays/short breaks, 2009-11
Who’s in the back?
Figure 41: Who people went on holiday with, 2009-11
MARKET SHARE
Key points
UK holidaymakers opt for Europcar, Avis or Hertz leads across Europe
Spain, France and the US
Spain
Figure 42: Top five car hire brands in Spain, by number of branches, 2011
France
Figure 43: Top five car hire brands in France, by number of branches, 2011
US
Figure 44: Car hire brands with over 200 branches in US, by number of branches, 2011
COMPANIES AND PRODUCTS
Alamo Rent A Car
Avis
Figure 45: Key financial data for Avis Europe plc, 2006-10
Budget Rent-A-Car
Dollar Thrifty
easyCar
Enterprise Rent-A-Car
Europcar
Figure 46: Key financial data for Europcar Group UK limited, 2009 and 2010
Figure 47: Key financial data for Europcar UK limited, 2009 and 2010
Hertz
Figure 48: Key financial data for Hertz Global Holdings, Inc. 2006-10
National Car Rental
Sixt
Figure 49: Key financial data for the Sixt Group, 2006-10
HOLIDAY CAR HIRING
Key points
Car hiring falls
Figure 50: Holiday car hire usage, 2010 and 2012
Who are the hirers?
Lapsed users are older
Never hired
EXPENDITURE AND LENGTH OF HIRE
Key points
One-week duration drives car hiring
Figure 51: Holiday car hire duration, February 2012
Who hires longer?
Expenditure rises
Figure 52: Holiday car hire cost, February 2012
Cost by duration
Figure 53: Cost of holiday car hire, by duration, February 2012
REASONS FOR NOT HIRING
Key points
Objections on the rise
Figure 54: Reasons for not hiring a car abroad, 2010 and 2012
Figure 55: Top three reasons for not hiring a car abroad, by growth in percentage agreement, 2010-12
Gender drives opinion
WHAT PEOPLE THINK OF HOLIDAY CAR HIRE
Key points
Major brands for the majority
Figure 56: Attitudes towards holiday car hire, February 2012
Looking for cheapest option becomes more likely
Figure 57: Attitudes towards holiday car hire, by holiday car hire usage, February 2012
What men and women want
Attitudes by brand
Figure 58: Attitudes towards holiday car hire, by hire brands used, February 2012
The long and the short of it
Figure 59: Attitudes towards holiday car hire, by duration of hire, February 2012
TARGETING OPPORTUNITIES
Key points
 TARGET GROUPS
Figure 60: Holiday car hire target groups, February 2012
Money Motivated
Demographic profile
Marketing message
Big Brand Averse
Demographic profile
Marketing message
Highly Engaged
Demographic profile
Marketing message
Easy Hirers
Demographic profile
Marketing message
APPENDIX – MARKET SIZE AND FORECAST
Figure 61: Forecast volume of car hire trips abroad by UK residents, best- and worst-case scenarios, 2011-16
APPENDIX – HOLIDAY CAR HIRING
Figure 62: Most popular holiday car hire usage, by demographics, February 2012
Figure 63: Next most popular holiday car hire usage, by demographics, February 2012
APPENDIX – EXPENDITURE AND LENGTH OF HIRE
Figure 64: Holiday car hire cost, by demographics, February 2012
Figure 65: Holiday car hire duration, by demographics, February 2012
APPENDIX – REASONS FOR NOT HIRING
Figure 66: Most popular reasons for not hiring a car abroad, by demographics, February 2012
Figure 67: Next most popular reasons for not hiring a car abroad, by demographics, February 2012
APPENDIX – WHAT PEOPLE THINK OF HOLIDAY CAR HIRE
Figure 68: Most popular attitudes towards holiday car hire, by demographics, February 2012
Figure 69: Next most popular attitudes towards holiday car hire, by demographics, February 2012
Figure 70: Other attitudes towards holiday car hire, by demographics, February 2012
APPENDIX – TARGETING OPPORTUNITIES
Figure 71: Attitudes towards holiday car hire, by target groups, February 2012
Figure 72: Target groups, by demographics, February 2012

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