Car Hire On Holiday Goes Through The Roof

Those lucky enough to be jetting off abroad this summer will have yet another additional expense to consider to add to a long list of Covid-hit financial penalties.

The yes-no nature of booking a holiday has meant that many of the most popular destinations had had limited appeal, or limited availability if they are fortunate to be on the green list. And once you’ve paid a premium to get on to the continent, you then have to consider a raft of additional Covid tests to prove you are fit to fly and haven’t brought the virus home with you. And now the pandemic has inadvertently added a premium onto the cost of hiring a car.

Many car hire firms sold off much of their stock in 2020, due to a lack of holiday activity across the globe and as holidaying prospects brightened the likes of Hertz and Europcar struggled to restock their fleet as car production stalled to kick-start in 2021, and now the microchip shortage across the automotive industry has ensured that there is a lack of new vehicles available for car hire firms on the continent.

In some cases, hiring a car in 2021 is three times more expensive than it was last year, and it is a problem which has been recognised by the biggest companies.

Speaking to the Financial Times this week, Caroline Parot, chief executive at Europcar, the biggest car hire company in Europe, said that businesses “cannot serve everyone we want to because there are not enough cars right now. 

She added: “People are eager to travel. If you look at the US, there are enough hotels and enough flights, but the car capacity has changed. Each time a corridor is opened the reservations are exploding and we are full in 24 hours, but then if it is cancelled they are all gone.”

Car hire providers have also had the logistical problem of trying to move vehicles across borders to try and meet demand for vehicles in countries that have got green list approval from the government.