Table of Contents
Executive Summary
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- Holiday car hire motors ahead
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- Figure 1: Forecast volume of holiday car hires abroad by UK residents, 2011-21
- Falling fuel prices boost fly-drive holidays
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- Figure 2: Petrol cost per litre in Europe 2016, change (pence per litre) 2014-16
- Online booking migration continues
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- Figure 3: Booking methods used for hiring last holiday car abroad, March 2016
- Hertz takes market leadership
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- Figure 4: Holiday car hire brands used in the past three years (with company ownership in brackets), March 2016 versus December 2014
- Holiday hire penetration up four points
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- Figure 5: Holiday car hire abroad in the past three years, March 2016 versus December 2014
- Navigational assistance most popular add-on
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- Figure 6: Interest in booking extras for holiday car hire abroad, March 2016
- Gateway to freedom
- Interest in P2P car hire in destinations
- Stress free, driver free holiday hire
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- Figure 7: Attitudes towards hiring a car on holiday abroad, March 2016
- What we think
Issues and Insights
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- Holiday car hire can position itself at the heart of the authenticity trend
- The facts
- The implications
- Car hire brands can create an independent alternative to the growing escorted tour market
- The facts
- The implications
- Boutique, P2P and green branding all likely to appeal to the Millennial traveller
- The facts
- The implications
The Market – What You Need To Know
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- Overseas travel recovery boosts car hire in 2015
- Further growth expected for 2016 but possible trouble on road ahead
- Western Med influx increasing price pressures
- But low fuel costs remain an advantage
- Ageing of the driving population
- The Millennial driver
- New mobility services could impact holiday car hire
Market Size and Forecast
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- Holiday hire finally recovers to 2008 levels
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- Figure 8: Volume of holiday car hires abroad by UK residents, 2011-21
- Forecast
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- Figure 9: Forecast volume of holiday car hires abroad by UK residents, 2011-21
Market Background
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- UK economic growth slowing
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- Figure 10: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, June 2013-March 2016
- Consumer confidence: still positive but jittery
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- Figure 11: Mintel consumer financial confidence index, January 2009-April 2016*
- EU uncertainty affecting currency markets
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- Figure 12: Annual average exchange rates, GBP versus EUR and USD, 2010-15 and spot rate for May 2016
- Holiday cost of living higher in 2016 but long-term trend still down
- Overseas holiday revival continues
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- Figure 13: Overseas holiday market volume and value, 2010-15
- But terrorist threat could affect confidence
- Rapid independent holiday recovery is good news for car hire
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- Figure 14: Independent versus package overseas holiday volume, 2010-15
- Holidays to Spain up five years in a row
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- Figure 15: Top 20 overseas holiday destinations by number of trips, 2010-15
- Western Med expected to benefit from tourism troubles elsewhere
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- Figure 16: Top 10 independently booked overseas holiday destinations, by number of trips, 2010-15
- Further problems in France but football may provide boost
- Low oil prices beginning to benefit fliers…
- …and holiday drivers
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- Figure 17: Petrol cost per litre in Europe 2016, and change 2014-15 and 2015-16
- Image problems
- Long-term shifts in the UK driving population
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- Figure 18: Average distance travelled by car/van driver in England, by age, 2002-14
- Marketing to Millennials
- On-demand culture could reshape future mobility in destinations
Channels to Market
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- Online booking percentage has risen 11 points in past two years
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- Figure 19: Booking methods used for hiring last holiday car abroad, March 2016
- Potential for ad hoc hire in destination
- Bookings split between direct and third party
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- Figure 20: Online booking methods used for hiring last holiday car abroad, March 2016
Key Players – What You Need To Know
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- Hertz becomes most popular brand
- Avis, Hertz and Enterprise see European expansion
- Shift to value-oriented brands
- New schemes offer challenge to traditional car hire model
- Prestige hires
- Europcar offer bike hire
- Insurance for older drivers
Market Share
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- Four groups control market
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- Figure 21: Holiday car hire brands used in the past three years (with company ownership in brackets), March 2016 versus December 2014
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- Figure 22: Number of holiday car hire brands used in the past three years, March 2016
- Expansion being driven by budget brands
Launch Activity and Innovation
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- Disruptive models
- Europcar/Ubeeqo
- P2P/car-sharing
- Drivy
- Qwekee
- Residential car share schemes
- WaiveCar offers ad-funded free rental
- Avis moves into wearable tech
- Enterprise expands premium hires
- Car/bike combos
- Saga launches new insurance product for older hirers
The Consumer – What You Need To Know
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- City break hires
- On the road
- Little to choose between?
- De-stressing car hire for older drivers
- In-car edutainment
- Freedom versus fly and flop
- Driverless car potential
Holiday Car Hire Usage
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- Car hire usage up four points
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- Figure 23: Holiday car hire abroad in the past three years, March 2016 versus December 2014
- Millennial/family biases
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- Figure 24: Age profile of holiday car hirers in the past three years, March 2016
- Over six in ten customers are ABC1
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- Figure 25: Socio-economic profile of holiday car hirers in the past three years, March 2016
- Car hire customers comfortably off but many are on mid-range household incomes
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- Figure 26: Household income profile of holiday car hirers in the past three years, March 2016
- Those who visit North America, Italy and Portugal are most likely to hire a car
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- Figure 27: Holiday car hire usage abroad in the past three years, by destination visited, March 2016
- Car adds extra dimension to beach holiday
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- Figure 28: Types of holiday on which a car has been hired abroad in the past three years, March 2016
- Creating bespoke car tours for older affluent travellers
Reasons Why People Choose A Car Hire Brand
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- Price is fundamental in commoditised market
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- Figure 29: Factors influencing choice of holiday car hire company, March 2016
- Gamifying deals for younger customers
- Parents more likely to be swayed by reputation/recommendation
- Hertz versus Europcar versus Avis
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- Figure 30: Percentage of those motivated by particular factors, by brand chosen in the past three years, March 2016
Holiday Car Hire Extras
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- Sat Nav and flexibility of pick-up/drop-off are popular extras
- Attracting older drivers
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- Figure 31: Interest in booking extras for holiday car hire abroad, March 2016
- Are we there yet Dad?
- Car as digital detox space
- Greening of holiday hire
- Lap of luxury
Attitudes Towards Holiday Car Hire
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- Freedom and discovery are key messages
- Selling the destination through the car
- Virtual road trips
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- Figure 32: Attitudes towards hiring a car on holiday abroad, March 2016
- P2P potential
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- Figure 33: Attitudes towards hiring a car on holiday abroad, MARCH 2016
- Driverless car could offer stress-free alternative
Appendix
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- Definition
- Abbreviations
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