Table of Contents
Executive Summary
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- The market
- Sluggish growth in the holiday car rental market
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- Figure 1: Forecast volume of holiday car hires abroad by UK residents, 2013-23
- British consumers are more positive about their finances
- Companies and brands
- Europcar most popular amongst UK consumers
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- Figure 2: Usage of car hire companies, December 2014 and March 2018
- The consumer
- The proportion of Brits hiring cars is in decline
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- Figure 3: Holiday car hire usage, May 2017-March 2018
- USA, France and Spain are key holiday car rental markets
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- Figure 4: Countries visited while hiring a car, March 2018
- Families are key targets but are price sensitive
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- Figure 5: Types of holidays taken when hiring a car, March 2018
- Opportunities in the peer-to-peer sharing market
- Is the rise of short breaks making it more difficult to rent cars?
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- Figure 6: Length of time last holiday car was rented for, March 2018
- The scope for peer-to-to peer rentals
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- Figure 7: Attitudes towards holiday car hire, March 2018
- What we think
Issues and Insights
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- Electric cars appeal to younger generations
- The facts
- The implications
- How much of a threat is Uber to rental firms?
- The facts
- The implications
The Market – What You Need to Know
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- Sluggish growth in the holiday car rental market
- Overseas holiday volume remains resilient
- Consumers more positive about their current finances…
- …and their future finances…
- …as wages increase and unemployment falls
Market Size and Forecast
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- Sluggish growth in the holiday car rental market
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- Figure 8: Total overseas car rental volume, 2013-23
- Figure 9: Forecast volume of holiday car hires abroad by UK residents, 2013-23
- Overseas volume figures have remained resilient but growth is slowing
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- Figure 10: Future plans for holidays, December 2017
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- Figure 11: Domestic holiday market volume versus overseas market volume (trips), 2012-22
- Forecast methodology
Market Drivers
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- British consumers are more positive about their current finances
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- Figure 12: Trends in how respondents would describe their financial situation, March 2014-April 2018
- …and are optimistic about their future finances
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- Figure 13: Trends in consumer sentiment for the coming year, March 2013-April 2018
- A brighter outlook for the UK economy
- More consumers plan to book holidays in the next three months
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- Figure 14: Plans to book holidays in the next three months, March 2014-April 2018
- Rising oil price could boost electric/hybrid car rentals
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- Figure 15: Price of Europe Brent Spot Price FOB (Dollars per Barrel), May 2014-April 2018
- The Pound recovers against the Dollar
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- Figure 16: Pound Sterling versus US Dollar and the Euro, May 2015-May 2018
- Uber and Lyft offer cheaper hassle-free alternatives
- The move towards greater transparency will benefit the car rental market
Companies and Brands – What You Need to Know
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- Avis moves into second place in terms of usage by UK consumers
- Europcar acquires Goldcar to focus on the low-cost market
- Hertz looks towards 2019 for growth
- Hyrecar offers peer-to-peer sharing
Market Share
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- Europcar, Avis and Hertz top the list
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- Figure 17: Usage of car hire companies, December 2014 and March 2018
Competitive Strategies
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- Europcar
- Avis
- Hertz
- Enterprise
Launch Activity and Innovation
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- Silvercar eases costs for families renting its high-end Audies
- Blacklane shows that car rentals are not all about driving yourself
- Fair acquires Skurt to leverage its technology
- Hyrecar offers peer-to-peer sharing
The Consumer – What You Need to Know
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- The proportion of UK consumers hiring cars is in decline
- USA, France and Spain are the key holiday car rental markets
- Families are key targets but are price sensitive
- 4-7 days is the most common rental period
- Consumers want well-known trustworthy car rental brands
- Cheaper electric cars have strong appeal
- How much of a threat is Uber to rental firms?
Holiday Car Hire
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- The proportion of UK consumers hiring cars is in decline
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- Figure 18: Holiday car hire, May 2017-March 18
- Car hire as a gateway to new experiences and the CaaS model
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- Figure 19: Holiday car hire, by age, March 2016-March 2018
- USA, France and Spain are the key holiday car rental markets
- Authentic experiences appeal
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- Figure 20: Countries visited while hiring a car, March 2018
Types of Holiday Taken
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- Families are key targets but are price sensitive
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- Figure 21: Types of holidays taken when hiring a car, March 2018
- Opportunities in the peer-to-peer sharing market
- Combining holiday types can be key for rental companies
- Beach holidaymakers looking for more than a ‘fly and flop’ break
- Special interest-based partnerships
Length of Time and Spend
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- Is the rise of short breaks making it more difficult to rent cars?
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- Figure 22: Length of time last holiday car was rented for, March 2018
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- Figure 23: Statistics on length of time holiday car was hired for, March 2018
- Spending on holiday car hire
- Policy changes could boost credit card purchases
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- Figure 24: Spending per day on holiday car rental, March 2018
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- Figure 25: Spending per holiday on car rental, March 2018
Attitudes towards Holiday Rental Cars
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- Consumers want well-known trustworthy car rental brands
- Cost is the number one consideration for the majority…
- …meaning cheaper electric cars have strong appeal
- How much of a threat is Uber to rental firms?
- The Uber revolution
- Responding to Uber’s transparency and convenience
- The scope for peer-to-to peer rentals
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- Figure 26: Attitudes towards holiday car hire, March 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 27: Best- and worst-case forecast for total UK passenger uplift, 2017-22
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