Table of Contents
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, 2008-18
- 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: Frequency of car, van or minibus hire in the last two years, November 2013
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- Figure 4: How car, van or minibus hire was arranged, November 2013
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- Figure 5: Reasons you might hire a self-drive car, van or minibus, November 2013
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- Figure 6: Hire companies that would be considered for car, van or minibus hire, November 2013
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- Figure 7: Factors considered most important when hiring a self-drive car, van or minibus in the future, November 2013
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- Figure 8: Interest in car sharing services, November 2013
- What we think
Issues in the Market
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- How to convert the unconverted
- Will the hire market benefit from the UK’s expected economic recovery?
- The threat posed by car clubs and peer-to-peer hire
- Does the hire market need to reassess itself?
- Do you have to advertise to be successful?
Trend Application
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- Make it Mine
- Generation Next
- Mintel futures – Old Gold
Internal Market Environment
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- Key points
- Car and van hire remains a specialist market
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- Figure 9: Frequency of car, van or minibus hire in the last two years, November 2013
- UK holidays win out over those overseas
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- Figure 10: Trends in total number of holiday visits, abroad versus domestic, 2008-12
- Housing market shows signs of recovery
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- Figure 11: UK housing transactions and average prices, 2008-12
- Student population continues to expand
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- Figure 12: Numbers of full-time undergraduates in UK, 2005/06-2011/12
Broader Market Environment
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- Key points
- UK economy and consumers showing signs of recovery
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- Figure 13: GDP, PDI, consumer expenditure and savings, at current prices, 2008-18
- GDP growth will take time to strengthen
- Consumer expenditure set to expand faster
- Recent GDP performance has been less promising
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- Figure 14: GDP quarterly percentage change, Q1 2006-Q2 2013
- UK population moving socially downward
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- Figure 15: Forecast adult population trends, by socio-economic group, 2008-18
- An ageing population
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- Figure 16: Trends in the age structure of the UK population, 2008-18
Competitive Context
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- Key points
- Car ownership remains a major expense
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- Figure 17: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2009-12
- Costs of running a vehicle record overall increase
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- Figure 18: Annual percentage change in transport costs, 2006-12
- Used car prices perform better than those for new vehicles
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- Figure 19: Price indices of new and used cars, 1996-2012
- Fuels and lubricants suffer the strongest price rises...
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- Figure 20: Indices of personal transport prices, 2006-12
- ...although this has been tempered recently by stability
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- Figure 21: Monthly UK petrol, diesel and oil price trends, January 2009-November 2013
- Alternatives to rental represent an emerging threat
- Car clubs
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- Figure 22: Car club vehicle and member growth, June 2008-November 2013
- Peer-to-peer car rental
- Lift sharing
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Car hire sector begins to diversify
- Exploiting new segments of the market
- Improved service to customers
Market Size and Forecast
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- Key points
- Short-term car rental market showing signs of recovery
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- Figure 23: Value of personal and business short-term car and van rental, 2008-13
- Demand for rentals hit by recent recession...
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- Figure 24: Number of rentals, number of hire days and average spend per rental, 2008-13
- ...with fleet sizes also contracting
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- Figure 25: Volume of personal and business short-term car and van fleet, 2008-13
- The future
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- Figure 26: UK short-term car and van rental, by value, at current prices, 2008-18
- Forecast
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- Figure 27: UK short-term car and van rental, by value, at current prices, 2008-18
Market Segmentation
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- Key points
- Pressure on market value is greatest for car hire segment
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- Figure 28: Value of personal and business short-term car and van rental, by vehicle type, 2008-12
- Business dominates short-term hire market
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- Figure 29: Value of personal and business short-term car and van rental, by rental type, 2008-12
- Consumers seeking out value
- Recovery of market evident by growth in premium and specialist vehicles
Market Share
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- Key points
- Multinationals dominate with Enterprise a clear leader
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- Figure 30: 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 31: UK fleet size of selected car rental companies, 2012
- Car sharing – also dominated by major names
Companies
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- Car and van hire companies
- Enterprise Rent-A-Car
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- Figure 32: Key financial data for Enterprise Rent-A-Car UK Limited, 2010-12
- Alamo Rent A Car
- National Car Rental
- Europcar
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- Figure 33: Key financial data for Europcar Group UK Limited, 2010-2012
- Hertz
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- Figure 34: Key financial data for Hertz UK Limited, 2010-12
- Thrifty Car and Van Rental
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- Figure 35: Key financial data for Scot Group (Thrifty), 2011-13
- Avis
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- Figure 36: Key financial data for Avis Rent A Car Limited, 2010-12
- Budget Rent a Car
- Sixt
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- Figure 37: Key financial data for Sixt Kenning limited, 2010-12
- easyCar
- Arnold Clark
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- Figure 38: Key financial data for Arnold Clark Finance Limited, 2010-12
- 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
Brand Communication and Promotion
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- Key points
- Promotional expenditure picking up
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- Figure 39: Main monitored media advertising expenditure on self-drive vehicle hire, 2008-13
- Enterprise dominates the market
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- Figure 39: Main monitored media advertising expenditure on self-drive vehicle hire, top 10 companies, 2009-13
- Enterprise dominates amongst established names
- Investment by other companies is growing
- Media strategies vary
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- Figure 40: Main monitored media advertising expenditure on self-drive vehicle hire companies, by media type, 2009-12
- Television grows its share of advertising
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- Figure 41: Main monitored media advertising expenditure on self-drive vehicle hire, by media type, 2009-13
Channels to Market
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- Key points
- Outlet numbers vary widely
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- Figure 42: Selected UK car rental companies, by number of outlets, 2013*
- Avis pursues a policy of rapid expansion
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- Figure 43: Selected UK car rental companies, by number of outlets, 2010-13
- Ways of operating in the hire market
- Car hire franchising
- Licensee marketing
- Affiliate marketing
- Brokers
The Consumer – Frequency of Hiring
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- Key points
- Nearly three quarters of adults haven’t hired in the last two years
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- Figure 44: Frequency of car, van or minibus hire in the last two years, November 2013
- Men more likely to hire than women
- Multiple car hire popular with young and Londoners
- Income and household size also impact on hire history
The Consumer – How Hire was Arranged
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- Key points
- Buying online proves the most popular method for purchasing
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- Figure 45: How car, van or minibus hire was arranged, November 2013
- Older and younger age groups have different approaches when booking
- City dwellers and more affluent prefer to book direct
- Do wealthier adults plan ahead?
The Consumer – Future Reasons for Hiring
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- Key points
- Moving home leads as the main reason for hiring
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- Figure 46: Reasons you might hire a self-drive car, van or minibus, November 2013
- Women are less likely to want to hire
- Young adults represent a sweet spot for hiring
- Urbanites want to hire for particular reasons
- High income earners have more complex demands
- Interest in specific reasons for hiring dip back
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- Figure 47: Main reasons for hiring a car, van or minibus in the future, 2012&2013
- Those hiring frequently are most likely to want a vehicle for a UK holiday
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- Figure 48: Reasons for car/van/minibus hire, by frequency of car/van/minibus hire, November 2013
- Smaller companies win out for more specialist demands
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- Figure 49: Reasons for car/van/minibus hire, by most popular companies considered for car/van/minibus hire, November 2013
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- Figure 50: Reasons for car/van/minibus hire, by next most popular companies considered for car/van/minibus hire, November 2013
The Consumer – Use of Hire Companies
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- Key points
- Enterprise has the greatest appeal with potential users
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- Figure 51: Hire companies that would be considered for car, van or minibus hire, November 2013
- Major names popular with men, young adults and the wealthy
- Less well-known hire companies slip back in minds of hirers
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- Figure 52: Hire companies that would be considered for car, van or minibus hire, 2012 and 2013
- Smaller rental companies lag in going digital
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- Figure 53: Companies considered for car/van/minibus hire, by how car/van/minibus hire reservation was made, November 2013
The Consumer – Factors That Are Important When Hiring
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- Key points
- Financial factors dominate issues with respect to car hire
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- Figure 54: Factors considered most important when hiring a self-drive car, van or minibus in the future, November 2013
- Older adults are more demanding
- Londoners record low importance for some key factors...
- ...with the opposite the case for those on low incomes or living in rural areas
- Light users of hire services are most demanding
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- Figure 55: Factors important when hiring a car/van/minibus, by frequency of car/van/minibus hire, November 2013
- Fuel and insurance charges are most important for those hiring only once in last two years
- Service factors find near universal appeal
- Heavy users of car/van hire want specific features
- Certain occasions see hirers demand more
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- Figure 56: Factors important when hiring a car/van/minibus, by reasons for car/van/minibus hire, November 2013
- Some hire companies viewed as offering a better deal
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- Figure 57: Factors important when hiring a car/van/minibus, by most popular companies considered for car/van/minibus hire, November 2013
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- Figure 58: Factors important when hiring a car/van/minibus, by next most popular companies considered for car/van/minibus hire, November 2013
The Consumer – Interest in Car Sharing
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- Key points
- High level of interest in use of car sharing
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- Figure 59: Interest in car sharing services, November 2013
- London remains key market for car sharing...
- ...with young adults also an important market
- Income and socio-economic status have an impact
- Environmental benefits of car sharing have broad appeal
- Car sharing is more popular with certain groups of hirers
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- Figure 60: Statements about car sharing, by frequency of car/van/minibus hire, November 2013
- Many heavy users of car hire have also used car sharing
- Environmental benefits are a key hook for the car sharing market
- Development of car sharing may lie in van sharing
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- Figure 61: Statements about car sharing, by most popular reasons for car/van/minibus hire, November 2013
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- Figure 62: Statements about car sharing, by next most popular reasons for car/van/minibus hire, November 2013
Appendix – The Consumer – Frequency of Hiring
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- Figure 63: Frequency of car/van/minibus hire, by demographics, November 2013
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Appendix – The Consumer – How Hire was Arranged
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- Figure 64: How car/van/minibus hire reservation was made, by demographics, November 2013
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Appendix – The Consumer – Future Reasons for Hiring
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- Figure 65: Most popular reasons for car/van/minibus hire, by demographics, November 2013
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- Figure 67: Next most popular reasons for car/van/minibus hire, by demographics, November 2013
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Appendix – The Consumer – Use of Hire Companies
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- Figure 66: Most popular companies considered for car/van/minibus hire, by demographics, November 2013
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- Figure 67: Next most popular companies considered for car/van/minibus hire, by demographics, November 2013
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Appendix – The Consumer – Factors That are Important When Hiring
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- Figure 68: Most popular factors important when hiring a car/van/minibus, by demographics, November 2013
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- Figure 69: Next most popular factors important when hiring a car/van/minibus, by demographics, November 2013
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- Figure 70: Other factors important when hiring a car/van/minibus, by demographics, November 2013
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Appendix – The Consumer – Interest in Car Sharing
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- Figure 71: Statements about car sharing, by demographics, November 2013
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