Table of Contents
Introduction
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- Definition
- Exclusions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: UK short-term car and van rental, by value, at current prices, 2007-17
- Market factors
- Companies, brands and innovation
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- Figure 2: Companies used last when hiring a self-drive car, van or minibus, November 2012
- Engaging with the customer
- The consumer
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- Figure 3: Main reasons for hiring a car, van or minibus in the future, 2009 and 2012
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- Figure 4: All who have personally hired a car, November 2012
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- Figure 5: Any level of satisfaction with companies used, or companies that consumers would consider, using by those who have hired in the last 2 years, November 2012
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- Figure 6: Factors considered most important when hiring a self-drive car, van or minibus in the future, November 2012
- What we think
Issues in the Market
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- Operating within a sluggish economy
- What does the future hold for the reasons for car hiring?
- How to compete with the big boys
- Is advertising required to be successful?
- What are the future prospects?
Trend Application
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- Trend: Patriot Games
- Trend: Green Technology
- Trend 2015: Access Anything, Anywhere
Internal Market Environment
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- Key points
- Car hire hit by the economic slowdown
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- Figure 7: Trends in car hire in Britain in the last 12 months for personal and business use, 2006-12
- Decline in car hire appears widespread
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- Figure 8: Frequency of hiring a car in Britain for personal or business use in the last 12 months, 2010-12
- Recession brings decline in car ownership
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- Figure 9: Household ownership of cars in the UK, 2006-12
- The popularity of UK holidays remains strong
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- Figure 10: Trends in total number of holiday trips taken, 2011 and 2012
- Housing market goes into reverse
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- Figure 11: UK housing transactions and average prices, 2008-11
- Growing student market
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- Figure 12: Numbers of full-time undergraduates in UK, 2005/06-2009/10
Broader Market Environment
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- Key points
- UK economy remains fragile...
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- Figure 13: GDP, PDI, consumer expenditure and savings, at constant 2007 prices, 2007-17
- ...with bumping along the bottom the order of the day
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- Figure 14: Trends in GDP quarterly percentage change, Q1 2007-Q3 2012
- Socio-economic changes set to impact on car hire market
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- Figure 15: Forecast adult population trends, by socio-economic group, 2007-17
- Ageing of the UK population presents opportunities
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- Figure 16: Trends in the age structure of the UK population, 2007-17
Competitive Context
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- Key points
- Cars dominate consumer expenditure
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- Figure 17: Spending on personal transport, at current prices, 2011
- Costs of running your own vehicle continue to rise...
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- Figure 18: Annual percentage change in transport costs, 2005-11
- ...while the price of used cars has been falling
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- Figure 19: Price indices of new and used cars, 1996-2011
- Costs of maintaining and running a vehicle continue to rise the most...
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- Figure 20: Indices of personal transport prices, 2005-11
- ...although recent stability for fuel prices could help the market
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- Figure 21: Monthly UK petrol, diesel and oil price trends, 2009-13*
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Going Green: Hybrid and electric vehicles
- Luxury car hire growing
- Exploiting new opportunities
- Benefiting from online developments
- Marketing and promotion
- Peer-to-peer hire market going mainstream...
- ...with car clubs also proving popular
Market Size and Forecast
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- Key points
- Mixed fortunes for car hire market...
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- Figure 22: Value of personal and business short-term car and van rental, 2007-12
- ...with demand for rentals actually falling back
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- Figure 23: Number of rental, number of hire days and average spend per rental, 2007-12
- Recession drives customers towards smaller vehicles...
- ...although some want luxury
- The future
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- Figure 24: UK short-term car and van rental, by value, at current prices, 2007-17
- Forecast
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- Figure 25: UK short-term car and van rental, by value, at current prices, 2007-17
Market Share
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- Key points
- Enterprise is the most popular amongst hirers
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- Figure 26: Companies used last when hiring a self-drive car, van or minibus, November 2012
- Arnold Clark has the largest fleet
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- Figure 27: UK fleet size of selected car rental companies, 2012
Companies
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- Car and van hire companies
- Enterprise Rent-A-Car
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- Figure 28: Key financial data for Enterprise Rent-A-Car UK Limited, 2010 and 2011
- Alamo Rent A Car
- National Car Rental
- Europcar
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- Figure 29: Key financial data for Europcar Group, 2010 and 2011
- Hertz
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- Figure 30: Key financial data for Hertz Global Holdings, Inc. 2010 and 2011
- Thrifty Car and Van Rental
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- Figure 31: Key financial data for Scot Group (Thrifty), 2011and 2012
- Avis
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- Figure 32: Key financial data for Avis Rent A Car Limited, 2010 and 2011
- Budget Rent A Car
- Sixt
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- Figure 33: Key financial data for Sixt Kenning Limited, 2010 and 2011
- easyCar
- Arnold Clark
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- Figure 34: Key financial data for Arnold Clark Finance Limited, 2010 and 2011
- Practical Car and Van Rental
- Ford Car Rentals
- Specialist van hire companies
- Northgate Vehicle Hire
- Salford Van Hire
- Car share and peer-to-peer companies
- Zipcar
- WhipCar
Brand Communication and Promotion
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- Key points
- Promotional expenditure picking up
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- Figure 35: Main monitored media advertising expenditure on self-drive vehicle hire, 2008-12
- Enterprise dominates expenditure
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- Figure 36: Main monitored media advertising expenditure on self-drive vehicle hire, top ten companies, 2008-12
- Enterprise dominates while other hire companies see investment fluctuate
- Peer-to-peer sector expands profile
- Media strategies vary
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- Figure 37: Main monitored media advertising expenditure on self-drive vehicle hire companies, by media type, 2008-11
- Few consumers focus in on advertising
- Television and internet are key channels
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- Figure 38: Main monitored media advertising expenditure on self-drive vehicle hire, by media type, 2008-12
Channels to Market
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- Key points
- Avis and Enterprise dominate rental scene
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- Figure 39: Selected UK car rental companies, by number of outlets, 2012
- Leading players expand their presence
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- Figure 40: Selected UK car rental companies, by number of outlets, 2010 and 2012
- Ways of operating in the hire market
- Car hire franchising
- Licensee marketing
- Affiliate marketing
- Brokers
The Consumer – Past Reasons for Hiring
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- Key points
- UK market typified by hiring for holidays and house moves
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- Figure 41: Main reasons for hiring a car, van or minibus in the last two years, November 2012
- Young adults are an important market
- Urbanites important for some aspects of hire
- Income has some impact on need to hire
- National hire companies are popular for most situations
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- Figure 42: Main reasons for hiring a car, van or minibus in the last two years, by companies used in the last two years for self-drive car, van or minibus hire, November 2012
- Certain national companies are well placed for future use
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- Figure 43: Main reasons for hiring a car, van or minibus in the last two years, by most popular companies would consider using in the future using for self-drive car, van or minibus hire, November 2012
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- Figure 44: Main reasons for hiring a car, van or minibus in the last two years, by next most popular companies would consider using in the future using for self-drive car, van or minibus hire, November 2012
The Consumer – Future Reasons For Hiring
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- Key points
- Moving home is by far the most likely reason to hire a car or van
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- Figure 45: Reasons you might hire a self-drive car, van or minibus in the future, November 2012
- Hiring when moving home has broad appeal
- Holiday and trip hire important for young adults
- Income is a major determinant for most hire situations
- Interest in hiring appears to be on the rise
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- Figure 46: Main reasons for hiring a car, van or minibus in the future, 2009 and 2012
- Other companies strongly placed for home move market
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- Figure 47: Reasons you might hire a self-drive car, van or minibus in the future, by companies used in the last two years for self-drive car, van or minibus hire, November 2012
The Consumer – Use of Hire Companies
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- Key points
- Enterprise records strong showing from recent hirers
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- Figure 48: Companies used or would consider using for self-drive car, van or minibus hire, November 2012
- Key findings of those who have hired in the last two years
- Young adults go for major brands
- Major names popular with those in London
- Enterprise appeals to the mass market
- Key findings of those who would consider hiring in the future
- Men, middle-aged adults and higher socio-economic groups know what they want
- Londoners also have specific demands
- Vehicle reliability tops customer satisfaction
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- Figure 49: Satisfaction levels amongst those who have personally hired a car, November 2012
- Women and older adults more likely to be satisfied with individual aspects of service
- Higher earners also record greater satisfaction
- Around four fifths are satisfied with their hire experience
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- Figure 50: Overall satisfaction levels amongst those have personally hired a car, November 2012
- Women and older adults are most satisfied
- Satisfaction levels are similar for individual companies
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- Figure 51: Companies used or would consider using for self-drive car, van or minibus hire, by levels of satisfaction with the service, November 2012
- Price an advantage for some
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- Figure 52: Companies used or would consider using for self-drive car, van or minibus hire, by most important factors, November 2012
The Consumer – Factors That Are Important When Hiring
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- Key points
- Insurance is most important to potential hirers
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- Figure 53: Factors considered most important when hiring a self-drive car, van or minibus in the future, November 2012
- Women are more demanding...
- ...as are older customers
- Wealthy look more at non-price factors
- Consumers are becoming more demanding, especially over costs
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- Figure 54: Factors considered most important when hiring a self-drive car, van or minibus in the future, 2009 and 2012
- Consumers expect different things from different companies
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- Figure 55: Factors considered most important when hiring a self-drive car, van or minibus in the future, by companies used in the last two years for self-drive car, van or minibus hire, November 2012
- Reason for hire also impacts on factors sought from a hire company
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- Figure 56: Factors considered most important when hiring a self-drive car, van or minibus in the future, by reasons you might hire a self-drive car, van or minibus in the future, November 2012
Appendix – Internal Market Environment
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- Figure 57: Car hire in Britain in the last 12 months, by demographics, 2012
- Figure 58: Frequency of hiring a car in Britain for personal or business use in the last 12 months, by demographics, 2012
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- Figure 59: Household ownership of cars in the UK, by demographics, 2012
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Appendix – Past Reasons for Hiring
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- Figure 60: Main reasons for hiring a car, van or minibus in the last two years, November 2012
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Appendix – Future Reasons For Hiring
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- Figure 61: Most popular reasons you might hire a self-drive car, van or minibus in the future, by demographics, November 2012
- Figure 62: Next most popular reasons you might hire a self-drive car, van or minibus in the future, by demographics, November 2012
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Appendix – Use of Hire Companies
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- Figure 63: Companies used in the last two years for self-drive car, van or minibus hire, by demographics, November 2012
- Figure 64: Companies used for the last car, van or minibus hire, by demographics, November 2012
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- Figure 65: Most popular companies would consider using in the future for self-drive car, van or minibus hire, by demographics, November 2012
- Figure 66: Next most popular companies would consider using in the future for self-drive car, van or minibus hire, by demographics, November 2012
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- Figure 67: All who have personally hired a car – satisfied on booking process, by demographics, November 2012
- Figure 68: All who have personally hired a car – satisfied on vehicle reliability, by demographics, November 2012
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- Figure 69: All who have personally hired a car – satisfied on condition of vehicle, by demographics, November 2012
- Figure 70: All who have personally hired a car – satisfied on customer service, by demographics, November 2012
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- Figure 71: All who have personally hired a car – satisfied on convenience of location, by demographics, November 2012
- Figure 72: All who have personally hired a car – satisfied on range of vehicles available, by demographics, November 2012
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- Figure 73: All who have personally hired a car – satisfied on price, by demographics, November 2012
- Figure 74: All who have personally hired a car overall – satisfied on price, by demographics, November 2012
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Appendix – The Consumer – Factors That Are Important When Hiring
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- Figure 75: Most important factors when hiring a self-drive car, van or minibus in the future, by demographics, November 2012
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- Figure 76: Next most important factors when hiring a self-drive car, van or minibus in the future, by demographics, November 2012
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- Figure 77: Other factors considered important when hiring a self-drive car, van or minibus in the future, by demographics, November 2012
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