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Holiday Car Hire - UK - October 2010

ISSUES IN THE MARKET
Key issues
Definitions
Abbreviations
FUTURE OPPORTUNITIES
Exploring the city of the future
Clubbing together
MARKET IN BRIEF
Volume falls but industry emerges stronger
Independent/AB growth trends favour holiday hire
Stress of driving deters others
Late bookings increase
No hidden costs
Challenge of differentiation
INTERNAL MARKET ENVIRONMENT
Key points
Overseas holidays yet to recover
Figure 1: Domestic and overseas holiday volume, 2005-10
36% of adults going abroad
Figure 2: Percentage of adults booking UK and overseas holidays, 2010
All regions drop but long-haul more resilient
Figure 3: Outbound holiday visits, by region visited, 2005-09
Spain falls but still a quarter of overseas holidays
Figure 4: Outbound holiday visits, by country visited, 2005-09
Independent shift continues
Figure 5: Inclusive holidays versus independent holidays, by volume, 2004-09
Large potential pool for car hire
Figure 6: Breakdown of household ownership of cars, by gender, age and socio-economic group, 2010
Overseas driving costs
Figure 7: Cost of three days’ car hire/unleaded 95 petrol in 20 holiday destinations, 2008-10*
Best value driving
Going green
BROADER MARKET ENVIRONMENT
Key points
Mixed signals
Figure 8: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
Figure 9: Consumer Confidence Index: September 2009-September 2010
Spending priorities – travel bounces back
Figure 10: Expenditure priorities, 2005-10
Population trends: three key age groups growing
Figure 11: Trends in the age structure of the UK population, by gender, 2005-15
Continuing AB growth good for holiday hire
Figure 12: Forecast adult population trends, by socio-economic group, 2005-15
Exchange rates
Figure 13: Average daily exchange rates against Sterling as at 15 September 2005-10
COMPETITIVE CONTEXT
Key points
A niche product
Figure 14: Main methods of travel used for holidays/short breaks abroad, 2010
Air travel falls furthest
Figure 15: Total overseas trips, by mode of transport, 2004-09
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Industry has rationalised in recession
Shift to independent travel continues
AB population growth
Development of sustainable alternatives
Weaknesses
Double-dip dangers
Stress of driving curtails demand
Demographic base may narrow further
Lack of brand loyalty and differentiation
WHO’S INNOVATING?
Key points
Mobile car booking
By the hour
Are we there yet?
Virtual drives
Road safety
Beyond dispute
MARKET SIZE AND FORECAST
Key points
Market falls but well placed for recovery
Figure 16: Volume of car hire trips abroad by British residents, 2005-15
MARKET SHARE
Key points
Three major groups
Figure 17: Overseas holiday car hire usage over the last three years, by brand, July 2010
COMPANIES AND PRODUCTS
 CAR HIRE SUPPLIERS
Alamo
Avis Europe plc
Enterprise Rent-A-Car
Europcar (UK) Ltd
Figure 18: Key Europcar financials, 2005-09
Hertz Europe
Sixt Kenning Ltd
 CAR HIRE BROKERS AND PRICE-COMPARISON SITES
Auto Europe
Carrentals.co.uk
CarTrawler
Holiday Autos
BRAND ELEMENTS
Key points
Brand map
Figure 19: Attitudes towards and usage of various holiday car hire brands, August 2010
Brand qualities of holiday car hire brands
Reliability the greatest concern
Figure 20: Personalities of various holiday car hire brands, August 2010
Experience of holiday car hire brands
Car hire still niche
Figure 21: Consumer usage of various holiday car hire brands, August 2010
Brand consideration for holiday car hire brands
easyCar most considered
Figure 22: Consideration of various holiday car hire brands, August 2010
Brand satisfaction for holiday car hire brands
Enterprise most excellent, Hertz most positive
Figure 23: Satisfaction with various holiday car hire brands, August 2010
Brand commitment to holiday car hire brands
Enterprise has edge on loyalty
Figure 24: Commitment to various holiday car hire brands, August 2010
Brand intentions for holiday car hire brands
Enterprise has best retention
Figure 25: Future usage intentions for various holiday car hire brands, August 2010
Brand recommendation for holiday car hire brands
Market leader Hertz most recommended
Figure 26: Recommendation of various holiday car hire brands, August 2010
Enterprise Rent-A-Car
What the consumer thinks
Figure 27: Attitudes towards the Enterprise Rent-A-Car brand, August 2010
easyCar
What the consumer thinks
Figure 28: Attitudes towards the easyCar brand, August 2010
Hertz
What the consumer thinks
Figure 29: Attitudes towards the Hertz brand, August 2010
HOLIDAY CAR HIRE USAGE
Key points
Strong AB bias
Figure 30: Holiday car hire usage, July 2010
COST AND DURATION
Key points
Three quarters hire for a week or less
Figure 31: Holiday car hire cost, July 2010
Figure 32: Holiday car hire duration, July 2010
BOOKING AND HOLIDAY TYPE
Key points
Two thirds book online
Figure 33: Car hire booking, July 2010
Fragmented holiday types
Figure 34: Type of holiday car was hired on, July 2010
REASONS FOR NOT HIRING
Key points
Need to relax
Figure 35: Reasons for never hiring a car, July 2010
ATTITUDES TOWARDS HOLIDAY CAR HIRE
Key points
Transparency and flexibility most important
Figure 36: Attitudes towards holiday car hire, July 2010
Brand indifference
Appealing to youth
TARGETING OPPORTUNITIES
Key points
 TARGET GROUPS
Figure 37: Holiday car hire target groups, July 2010
Budget Branders (17% of car hirers or 3.0 million adults)
Demographic profile:
Localists (29% of car hirers or 5.1 million adults)
Demographic profile:
Car Specific (26% of car hirers or 4.5 million adults)
Demographic profile:
Indifferent (28% of car hirers or 4.9 million adults)
Demographic profile:
APPENDIX – HOLIDAY CAR HIRE USAGE
Figure 38: Most popular holiday car hire usage, by demographics, July 2010
Figure 39: Next most popular holiday car hire usage, by demographics, July 2010
APPENDIX – COST AND DURATION
Figure 40: Holiday car hire cost, by holiday car hire duration – 1-4 days, July 2010
Figure 41: Holiday car hire cost, by holiday car hire duration – 5-14 days, July 2010
Figure 42: Holiday car hire duration, by holiday car hire cost – <£250, July 2010
Figure 43: Holiday car hire duration, by holiday car hire cost – £251+, July 2010
Figure 44: Holiday car hire cost, by demographics, July 2010
Figure 45: Holiday car hire duration – 1-4 days, by demographics, July 2010
Figure 46: Holiday car hire duration – 5-14 days, by demographics, July 2010
APPENDIX – BOOKING AND HOLIDAY TYPE
Figure 47: Car hire booking, by most popular holiday car hire usage, July 2010
Figure 48: Car hire booking, by next most popular holiday car hire usage, July 2010
Figure 49: Car hire booking, by holiday car hire cost, July 2010
Figure 50: Type of holiday car was hired on, by grouped holiday car hire durations, July 2010
Figure 51: Type of holiday car was hired on, by holiday car hire durations – 2-5 days, July 2010
Figure 52: Type of holiday car was hired on, by holiday car hire duration – 7-14 days, July 2010
Figure 53: Most popular car hire booking, by demographics, July 2010
Figure 54: Type of holiday car was hired on, by demographics, July 2010
APPENDIX – REASONS FOR NOT HIRING
Figure 55: Most popular reasons for never hiring a car abroad, by demographics, July 2010
Figure 56: Next most popular reasons for never hiring a car abroad, by demographics, July 2010
APPENDIX – ATTITUDES TOWARDS HOLIDAY CAR HIRE
Figure 57: Attitudes towards holiday car hire, by most popular holiday car hire usage, July 2010
Figure 58: Attitudes towards holiday car hire, by next most popular holiday car hire usage, July 2010
Figure 59: Attitudes towards holiday car hire, by holiday car hire cost, July 2010
Figure 60: Attitudes towards holiday car hire, by type of holiday car was hired on, July 2010
Figure 61: Most popular attitudes towards holiday car hire, by demographics, July 2010
Figure 62: Next most popular attitudes towards holiday car hire, by demographics, July 2010
APPENDIX – TARGETING OPPORTUNITIES
Figure 63: Attitudes towards holiday car hire, by target groups, July 2010
Figure 64: Holiday car hire usage, by target groups, July 2010
Figure 65: Holiday car hire cost, by target groups, July 2010
Figure 66: Holiday car hire duration, by target groups, July 2010
Figure 67: Car hire booking, by target groups, July 2010
Figure 68: Type of holiday car was hired on, by target groups, July 2010
Figure 69: Target groups, by demographics, July 2010

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