What is the Outlook for Car Hire in 2025?
We look at what you can expect to happen to car hire prices this year
2024 was an interesting year in the travel industry with great demand for travel worldwide. In December, UN Tourism predicted that travel in 2024 would slightly exceed the levels seen in 2019 pre-COVID-19 pandemic.
In the car hire industry specifically, we saw high demand in key locations in Spain, Portugal, Ireland and Italy. At times we saw cars being fully sold out or very high prices for last minute bookers which further emphasised the benefit of booking your vehicle early.
The outlook for 2025 looks like it could follow the trends of 2024. Early discussions with our rental partners suggest that they will not be significantly increasing their fleet sizes for this year. There is predicted to be increased demand from travellers on 2024 levels. This is likely to mean that it’s even more important to book early than wait until the last minute as prices will most probably rise the closer you get to the pick up date as the number of cars they have available falls. One of our team booked a vehicle in June 2024 for their skiing trip from Innsbruck Airport for March 2025, the price is now €65 more than when it was booked. We think it’s unlikely this price is going to drop before they travel!
There were, however, points throughout 2024 where you could get a hire in Portugal, Spain and Greece for a week for less than £10. These prices were mostly seen at off peak and out of season times, but they are incredibly low and sadly not sustainable for the hire firms. This is part of the driver for them to not increase fleet levels in 2025, as if they have the same supply but more demand the prices are less likely to reach the lows they did in 2024.
Whilst some of our partners are looking at increasing the destinations they’re in, we’re seeing a renewed focus across the board on improving customer satisfaction levels over expanding their reach. Whilst we hear very few complaints from our customers about their experiences at the desk, it’s great to hear that there is investment and training going towards recruiting more customer service agents and increasing their knowledge. This will hopefully see improvements not only in post-rental complaints or queries but also experiences with queries prior to picking up the rental.
Our top tips for car hire in 2025 based on our discussions with partners are the following:
Book early – we’re seeing trends in most destinations that it is not paying off to hold out until the last minute to book your vehicle. This is particularly true when it comes to hires during peak times such as school holidays.
Book on a free cancellation deal – whilst we absolutely recommend booking early as prices are rising the closer we get to pick up dates, there are exceptions. This is why we offer free cancellation up to 48 hours prior to pick up, as if you find the price does fall, you can always rebook at the lower price and cancel your original hire.
Book the vehicle class you need – car hire firms will not be hugely increasing their fleets, if they do it will be by tens of vehicles not hundreds. There is also unlikely to be any increase in the number of larger vehicles such a 7 and 9 seaters. We would highly recommend that you book a vehicle that is the correct size for your party and luggage. There is unlikely to be stock spare if you need to get a bigger vehicle at the desk.
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