Holiday Car Hire Prices to Increase Further in 2010
Car industry experts are expecting car hire prices to rise even further next year for popular holiday destinations as the recession squeezes availability of fleet vehicles.
This year car rental prices rocketed in major holiday resorts in Spain and America as car hire companies slashed excess vehicles from their fleet and concentrated on hiring a smaller, more concentrated group of cars more regularly.
Car hire had to adapt to the new harsh economic realities of 2009 making cuts where necessary in order to preserve profitability.
Whereas hotels had fixed capacities which needed to be filled, prompting dramatic price cuts on hotel rooms, car hire firms could alter capacity to adjust to the new market demand. One US hotelier quipped he would love to be in the position of the car hire companies, if only he could lop off the top two floors of his hotel every time demand dipped for holidays in America.
US branches of international car hire firms like Hertz, Avis and Alamo cut capacity by up to 20 per cent in light of reduced demand. Meanwhile in Spain and France, prices nearly doubled at some resorts for car hire as a result of cut capacity.
At Alicante for example, car hire prices increased by 87 per cent and in Toulouse prices shot up by 96 per cent. With no indication of car hire firms increasing their capacity any time soon, travellers can expect prices to increase further, as more people compete for the same cars at key destinations.
Car Hire News posted by Suzy Broadbent on 24 December 2009
Stock Tickers: HTZ CAR
Car hire, prices, Europe holidays, America, Spain, Hertz, Avis
http://www.comparecarrentals.com/news/car-hire-restrictions-set-to-continue-next-year-53827921.html
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