Heightened car rental requests during holiday season
Car rental companies like Europcar, Sixt, and Avis are seeing a skyrocketing demand for cars this Christmas, thanks to the ongoing COVID-19 pandemic. According to Stefan Vorndran, CEO of Europcar Mobility Group Germany, the demand for their brands has even surpassed last year's levels at some city stations. The same sentiment echoes from Sixt, as their spokesperson Stefanie Seidlitz reports an uptick in booking requests for the Advent season, mostly from folks seeking flexible and individual mobility to reunite with family – partly due to reduced flight and travel schedules.
The surge in demand can be attributed to three major factors:
- Shifts in travel behavior due to COVID-19: Many travelers opt for stress-free road trips and private transportation instead of congested public transit or flights to minimize virus exposure.
- Pent-up travel demand: People are itching to hit the road again after months of travel restrictions and lockdowns earlier in 2020 and 2021, thereby boosting rental car bookings during key holiday seasons like Christmas.
- Constrained vehicle supply: Pandemic disruptions in vehicle production have led to a shortage of rental cars, pushing prices up during this peak demand period.
To tackle this increased demand, rental companies have employed various strategies:
- Fleet expansion and vehicle procurement: They have made efforts to grow their rental fleet sizes, acquiring more vehicles as supply chains stabilize.
- Price hikes: During peak seasons like Christmas, rental companies have raised prices to manage demand and cover escalating operational costs.
- Enhanced safety protocols: Companies have stepped up cleaning and sanitization procedures for rental vehicles to reassure customers regarding health and safety measures during the pandemic.
- Flexible rental options: Companies have either introduced or expanded flexible booking policies suitable for evolving travel restrictions amid the pandemic.
Overall, the spike in car rental demands over Christmas 2021 is the result of pandemic-induced alterations in travel patterns, coupled with a limited vehicle supply, compelling companies like Europcar, Sixt, and Avis to adapt through fleet management, pricing strategies, and health safety measures.
Other factors contributing to the increased car rental demand this Christmas include shifts in lifestyle choices, with many individuals favoring road trips and private transportation as a safer alternative to public transit or flights. Moreover, those seeking to travel and reunite with loved ones during the holiday season, in light of reduced flight and travel schedules, have opted for travel via rental cars, thus contributing to the expansion of the car rental market.
