Car hire availability issues likely to continue in 2010

Industry experts claim that the car rental industry is facing another tough year in 2010 as many firms are predicted to continue their struggle with upgrading their fleet due to the unavailability of cash flow and credit due to the current economic climate, with many companies

The credit crunch saw many car hire firms unable to upgrade their fleets and downsize their fleets, which created major problems with supply and demand.  This was evident in locations across Europe during the summer peak travel season this year, especially in holiday destinations in Spain such as Malaga, Alicante and Valencia, when customers who sought car hire struggled to find a hire car, while those who were fortunate enough to find a vehicle were forced to pay extra-high prices.

According to car hire comparison website Carrentals.co.uk, some vehicle hire prices have increased by 96 per cent over the past 12 month period between 2008 and 2009.

Locations with the biggest increases according to the website include Gibraltar airport, which witnessed an £8.16 per day increase (65 per cent), Alicante airport which increased by £11.23 a day (up 87 per cent), and Toulouse airport, which saw the biggest increase of £23.07 per day (up 96 per cent).

Managing director of Carrentals.co.uk Gareth Robinson said the global recession has had a big impact on fleet sizes over the year, as many companies have been unable to increase the number of vehicles to cope with seasonal demand due to the lack of funding from banks.

He pointed out that without finance from banks, car rental firms are forced to cope with a limited supply of vehicles, causing a reduced availability in many locations, which is a trend to continue into 2010.

EasyCar spokesman Owen Coles agreed, saying that while general expectations are that the economy would improve in 2010, the instability of the financial climate makes the situation unclear as to how easy it would be for companies to obtain finance for fleet expansion.

He said that fleet sizes in 2010 would be the same as 2009 and warned that similar car hire shortages could take place in peak periods, such as over summer Christmas and public holidays.

Those who are planning their holidays for 2010 are being strongly advised to reserve their car hire with plenty of time to guarantee the best deal.