Holiday Car Hire - UK - June 2018

OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
Sluggish growth in the holiday car rental market
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
Figure 2: Usage of car hire companies, December 2014 and March 2018
The consumer
The proportion of Brits hiring cars is in decline
Figure 3: Holiday car hire usage, May 2017-March 2018
USA, France and Spain are key holiday car rental markets
Figure 4: Countries visited while hiring a car, March 2018
Families are key targets but are price sensitive
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?
Figure 6: Length of time last holiday car was rented for, March 2018
The scope for peer-to-to peer rentals
Figure 7: Attitudes towards holiday car hire, March 2018
What we think
ISSUES AND INSIGHTS
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
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
Sluggish growth in the holiday car rental market
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
Figure 10: Future plans for holidays, December 2017
Figure 11: Domestic holiday market volume versus overseas market volume (trips), 2012-22
Forecast methodology
MARKET DRIVERS
British consumers are more positive about their current finances
Figure 12: Trends in how respondents would describe their financial situation, March 2014-April 2018
…and are optimistic about their future finances
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
Figure 14: Plans to book holidays in the next three months, March 2014-April 2018
Rising oil price could boost electric/hybrid car rentals
Figure 15: Price of Europe Brent Spot Price FOB (Dollars per Barrel), May 2014-April 2018
The Pound recovers against the Dollar
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
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
Europcar, Avis and Hertz top the list
Figure 17: Usage of car hire companies, December 2014 and March 2018
COMPETITIVE STRATEGIES
Europcar
Avis
Hertz
Enterprise
LAUNCH ACTIVITY AND INNOVATION
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
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
The proportion of UK consumers hiring cars is in decline
Figure 18: Holiday car hire, May 2017-March 18
Car hire as a gateway to new experiences and the CaaS model
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
Figure 20: Countries visited while hiring a car, March 2018
TYPES OF HOLIDAY TAKEN 
Families are key targets but are price sensitive
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 
Is the rise of short breaks making it more difficult to rent cars?
Figure 22: Length of time last holiday car was rented for, March 2018
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
Figure 24: Spending per day on holiday car rental, March 2018
Figure 25: Spending per holiday on car rental, March 2018
ATTITUDES TOWARDS HOLIDAY RENTAL CARS
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
Figure 26: Attitudes towards holiday car hire, March 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 27: Best- and worst-case forecast for total UK passenger uplift, 2017-22