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How a rental car shortage in Europe could scupper summer holiday plans

After long months of lockdowns and curfews Europeans are looking forward to jetting off for a bit of sun and sand -- only to find that their long awaited holiday plans go awry due to a shortage of rental cars.

How a rental car shortage in Europe could scupper summer holiday plans
Tourists wait outside of rental car agencies in Corsica. Photo: PASCAL POCHARD-CASABIANCA / AFP

In many areas popular with tourists cars are simply not available or subcompacts are going for a stiff €500 euros.

Car rental comparison websites show just how expensive renting a vehicle has become for tourists this summer.

According to Carigami, renting a car for a week this summer will set tourists back an average of 364 euros compared to 277 euros two years ago.

For Italy, the figure is 407 euros this summer compared to 250 euros in 2019. In Spain, the average cost has jumped to 263 euros from 185 euros.

According to another website, Liligo, daily rental costs have nearly doubled on the French island of Corsica. At the resort city of Palma on the Spanish island of Mallorca, rental prices have nearly tripled.

Today’s problem is a direct result of the coronavirus pandemic.

Faced with near absence of clients, selling off vehicles to raise cash made a lot of sense for car rental firms struggling to survive.

“Everyone drastically reduced their fleet,” said the head of Europcar, Caroline Parot.

Until the spring, most companies still had fleets roughly a third smaller than in 2019, she said.

Car rental firms are used to regularly selling their vehicles and replacing them, so rebuilding their inventory should not have been a problem.

Except the pandemic sent demand for consumer electronics surging, creating a shortage of semiconductors, or chips, that are used not only in computers but increasingly in cars.

“A key contributor to the challenge right now is the global chip shortage, which has impacted new vehicle availability across the industry at a time when demand is already high,” said a spokesman for Enterprise.

It said it was working to acquire new vehicles but that in the mean time it is shifting cars around in order to better meet demand.

No cars, try a van

“We’ve begun to warn people: if you want to come to Italy, which is finally reopening, plan and reserve ahead,” said the head of the association of Italian car rental firms, Massimiliano Archiapatti.

He said they were working hard to meet the surge in demand at vacation spots.

“But we’ve got two big islands that are major international tourism destinations,” he said, which makes it difficult to move cars around,
especially as the trip to Sardinia takes half a day.

“The ferries are already full with people bringing their cars,” he added.

“Given the law of supply and demand, there is a risk it will impact on prices,” Archiapatti said.

The increase in demand is also being seen for rentals between individuals.

GetAround, a web platform that organises such rentals, said it has seen “a sharp increases in searches and rentals” in European markets.

Since May more than 90 percent of cars available on the platform have been rented on weekends, and many have already been booked for much of the summer.

GetAround has used the surge in demand to expand the number of cities it serves.

For some, their arrival can’t come fast enough.

Bruno Riondet, a 51-year-old aeronautics technician, rents cars to attend matches of his favourite British football club, Brighton.

“Before, to rent a car I was paying between 25 and 30 euros per day. Today, it’s more than 90 euros, that’s three times more expensive,” he said.

In the United States, where prices shot higher during the spring, tourists visiting Hawaii turned to renting vans.

In France, there are still cars, according to Jean-Philippe Doyen, who handles shared mobility at the National Council of Automobile Professionals.

“Clients have a tendency to reserve at the last minute, even more so in the still somewhat uncertain situation,” he said.

They will often wait until just a few days before their trip, which means car rental firms don’t have a complete overview of upcoming demand, he added.

He said business is recovering but that revenue has yet to reach pre-pandemic levels as travel is not yet completely unfettered.

SEE ALSO: British drivers will no longer need an insurance ‘green card’ to visit Europe, EU rules

Member comments

  1. On my last trip back to the UK I noticed Avis had closed loads of branches, very few of the non-airport ones survive. Back in Italy they’ve also closed locations too, Ferrara no longer shows up when I do a search, the nearest is Bologna.

    I was in the UK just as the first pandemic was starting to hit, demand had slumped and prices were very low. It seems to survive they shut a lot of their branches as well as selling off a lot of their cars.

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TRAVEL

Could Oslo-Copenhagen overnight train be set for return?

A direct overnight rail service between the Norwegian and Danish capitals has not operated since 2001, but authorities in Oslo are considering its return.

Norway’s transport minister Knut Arild Hareide has asked the country’s railway authority Jernbanedirektoratet to investigate the options for opening a night rail connection between Oslo and Copenhagen.

An answer is expected by November 1st, after which the Norwegian government will decide whether to go forward with the proposal to directly link the two Nordic capitals by rail.

Jernbanedirektoratet is expected to assess a timeline for introducing the service along with costs, market and potential conflicts with other commercial services covering the route.

“I hope we’ll secure a deal. Cross-border trains are exciting, including taking a train to Malmö, Copenhagen and onwards to Europe,” Hareide told Norwegian broadcaster NRK.

The minister said he envisaged either a state-funded project or a competition awarding a contract for the route’s operation to the best bidder.

A future Oslo-Copenhagen night train rests on the forthcoming Jernbanedirektoratet report and its chances of becoming a reality are therefore unclear. But the Norwegian rail authority earlier this year published a separate report on ways in which passenger train service options from Norway to Denmark via Sweden can be improved.

“We see an increasing interest in travelling out of Norway by train,” Jernbanedirektoratet project manager  Hanne Juul said in a statement when the report was published in January.

“A customer study confirmed this impression and we therefore wish to make it simpler to take the train to destinations abroad,” Juul added.

Participants in the study said that lower prices, fewer connections and better information were among the factors that would encourage them to choose the train for a journey abroad.

Norway’s rail authority also concluded that better international cooperation would optimise cross-border rail journeys, for example by making journey and departure times fit together more efficiently.

The Femahrn connection between Denmark and Germany, currently under construction, was cited as a factor which could also boost the potential for an overland rail connection from Norway to mainland Europe.

Night trains connected Oslo to Europe via Copenhagen with several departures daily as recently as the late 1990s, but the last such night train between the two cities ran in 2001 amid dwindling demand.

That trend has begun to reverse in recent years due in part to an increasing desire among travellers to select a greener option for their journey than flying.

Earlier this summer, a new overnight train from Stockholm to Berlin began operating. That service can be boarded by Danish passengers at Høje Taastrup near Copenhagen.

READ ALSO: What you need to know about the new night train from Copenhagen to Germany

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