Holiday Car Hire - UK - February 2008

ISSUES IN THE MARKET
Main issues
Definitions
 ABBREVIATIONS
INSIGHTS AND OPPORTUNITIES
Retiring in the fast lane
Driving to the American Dream
Car Keys Unlock the World
MARKET IN BRIEF
Overtaking sea and tunnel
Older, richer, sitting comfortably
‘You’ve seen the movie now drive on the set’
Car wash
Aping aviation
The price of freedom
Innovate or stall
FAST FORWARD TRENDS
 TREND 1: THIRD PLACE
What is it about?
What we’ve seen
What next?
 TREND 2: STRESS SOCIETY
What is it about?
What we’ve seen
What next?
What is Fast Forward Trends?
INTERNAL MARKET ENVIRONMENT
Key points
Overseas expansion
Still flying high
Figure 1: Domestic versus overseas holidays, 2002-12
Quick getaways
Figure 2: Percentage of adults booking UK and overseas holidays, 2002-07
Two’s company
Destinations
Figure 3: Outbound holiday visits, by region visited, 2003-07
Part of the in-crowd
Figure 4: Inclusive holidays versus independent holidays, by volume, 2003-07
Home from home; car from car
Car ownership
Figure 5: Breakdown of car ownership amongst UK licence or provisional licence holders, by gender, age and socio-economic group, September 2007
BROADER MARKET ENVIRONMENT
Key points
Centre of the narrowing travel road
Figure 6: Trends in personal disposable income and consumer expenditure, 2002-12
On the road or la strada?
Figure 7: UK spending priorities for year ahead, 2005-08
Driving Miss Daisy
Figure 8: Trends in the age structure of the UK population, by gender, 2002-12
Silver wheelers
Figure 9: Forecast adult population trends, by lifestage, 2002-12
Figure 10: Forecast adult population trends, by socio-economic group, 2002-12
Affordable road movies
Figure 11: Annual average exchange rates for Sterling against the euro and US Dollar, 2002-06
Fuelling the eco fire
COMPETITIVE CONTEXT
Key points
Catching up with ferries
Rail rises…but in a different market
Figure 12: Main methods of travel used for last, or last but one holiday abroad, 2003-07
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Overtaking the queues
Flexible pricing and pick-ups
Consumer engagement
Getting to know you
‘Greening the product’
Inspiration
MARKET SIZE AND FORECAST
Key points:
Figure 13: Forecast of Volume of car hire trips abroad by British residents, 2003-12
Growth drivers
 FACTORS USED IN THE FORECAST
COMPANIES AND PRODUCTS
 CAR HIRE COMPANIES
Alamo
Avis Europe plc
Budget
Enterprise Rent-a-Car
Europcar (UK) Ltd
Figure 14: Key Europcar financials, 2004-07
Hertz Europe (Ltd)
National
Sixt Kenning Ltd
 CAR HIRE BROKERS
Auto Europe
easyCar
 PRICE-COMPARISON SITES
Carrentals
Travelsupermarket
BRAND ELEMENTS
 BRAND MAP
Figure 15: Attitudes and usage of car hire brands, December 2007
Alamo
What the consumer thinks
Figure 16: attitudes towards the Alamo brand, December 2007
Avis
What the consumer thinks
Figure 17: Attitudes towards the Avis brand, December 2007
Budget
What the consumer thinks
Figure 18: Attitudes towards the Budget brand, December 2007
EasyCar
What the consumer thinks
Figure 19: Attitudes towards the EasyCar, December 2007
Europcar
What the consumer thinks
Figure 20: Attitudes towards the Europcar brand, December 2007
Hertz
What the consumer thinks
Figure 21: Attitudes towards the Hertz, December 2007
National
What the consumer thinks
Figure 22: Attitudes towards the National brand, December 2007
 PERSONALITY OF CAR HIRE BRANDS
Low penetration, but familiarity strong
Figure 23: Word associations of various car hire brands, December 2007
 EXPERIENCE OF CAR HIRE BRANDS
Low penetration, but familiarity strong
Figure 24: Consumer usage of various car hire brands, December 2007
 BRAND CONSIDERATION FOR CAR HIRE BRANDS
Ignorance reflects requirement for stronger branding
Figure 25: Consumer usage of various car hire brands, December 2007
 BRAND MOMENTUM FOR CAR HIRE BRANDS
Ignorance reflects requirement for stronger branding
Figure 26: Momentum of various car hire brands, December 2007
 BRAND SATISFACTION FOR CAR HIRE BRANDS
Europcar leads the contented rather than happy
Figure 27: Satisfaction of various car hire brands, December 2007
 BRAND COMMITMENT TO CAR HIRE BRANDS
Hertz and Alamo come more highly recommended
Figure 28: Commitment toof various car hire brands, December 2007
 MOTIVATION OF CAR HIRE BRANDS
Holidays and VFR drive brands
Figure 29: Motivation of various car hire brands, December 2007
 ROUND UP
DISTRIBUTION
Key points:
Figure 30: Main methods of booking the last holiday abroad of those who hired a car (self-hire), 2003-08
HOLIDAY CAR HIRE USAGE
Key points
Figure 31: Car hire usage, October 2007
Treat the rich
Drive the Dream
Slowing down and loading up
The Fast and the Curious
Cutting costs, not corners
HOLIDAY CAR HIRE HABITS
Key points
Figure 32: Details of previous car hire abroad, October 2007
Previous hire habits by demographics
Key car markets
Wheels deals and Lovers Lanes
Backseat education
The Family Way
Riding In Cars With Boys (Or Girls)
ATTITUDES TOWARDS HOLIDAY CAR HIRE
Key points
Figure 33: Attitudes towards holiday car hire abroad, October 2007
Attitudes by demographics
Free for all
Alternative views
HOLIDAY CAR HIRE TARGETING OPPORTUNITIES
Key points
Freedoms (40% of UK adults aged 17+ who have hired a car abroad or 5.6 million adults)
Practicals (31% of UK adults aged 17+ who have hired a car abroad or 4.3 million adults)
Afraids (25% of UK adults aged 17+ who have hired a car abroad or 3.5 million adults)
APPENDIX – HOLIDAY CAR HIRE USAGE
Figure 34: Car hire usage, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
APPENDIX – HOLIDAY CAR HIRE HABITS
Figure 35: Details of previous car hire by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size and car ownership, October 2007
APPENDIX – ATTITUDES TOWARDS HOLIDAY CAR HIRE
Figure 36: Most popular attitudes towards holiday car hire, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education age, October 2007
APPENDIX – HOLIDAY CAR HIRE TARGETING OPPORTUNITIES
Figure 37: Car hire target groups by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, media usage and supermarket usage, October 2007