THE CAR TRAWLER BIANNUAL GROWTH TRENDS INDEX ISSUE 1: CAR RENTAL REVEALED
NEW BOOKING CHANNELS AND CREDIT CRUNCH SHOW SHIFT IN CAR RENTAL TRENDS
Dublin and London Xth June 2008. CarTrawler, the global car rental distribution company, has today issued its first Biannual Growth Trends Index which looks at key car rental statistics and performance indicators across the globe.
In particular, in the first six months of this year, CarTrawler has noted increased growth in car rental destinations outside the normal ones expected from the UK (e.g. Spain and Portugal) – particularly sharp increases in the US, non-Euro zone destinations (e.g. Romania and Bulgaria) and key long haul destinations. The shift in booking channels to aggregators’ and airlines’ own websites also shows a steep increase in city break car rental bookings – more and more people are renting cars to match long weekends away.
“With an unparalleled global spread and a business model which focuses on new methods of distribution – such as on airline and OTA websites – CarTrawler’s technology systems have tracked a number of trends in the car rental market demonstrating a significant shift in booking channels and a number of new growth markets. This Growth Trends Index highlights the most significant changes we have noted from 2007 to 2008,” comments Greg Turley, CEO, CarTrawler.
HIGHLIGHTS:
Biggest growth markets are new markets – with focus on US and non-Eurozone:
- Orlando has the highest growth in the car rental market (63% year on year)
- Early signs show a sharp increase in bookings to Las Vegas, making this the destination to watch (71% booking hike in past 3 months)
- London is the key city break destination for car rental (70% year on year growth)
- Other destinations emerging as front runners include Geneva, Warsaw, Barbados and Sofia
- Booking lead times are dropping from 40 to 30 days
- 14% of consumers now book on airline or aggregator websites
- 54% want to “shop around” and price compare before renting a car
- 6% of consumers still wait until they are in-destination to rent a car
- Price (71%), car type (11%) and service (5%) are the key influencers for consumers booking a car
This Growth Trends Index in particular looks at year on year growth figures in key areas and hotspots of the global car rental industry, as well as releasing the results of a recent consumer survey, which polled over 1,000 consumers on what influenced their car rental booking from brand to price to travel dates*.
GLOBAL CAR RENTAL GROWTH MARKETS
All figures are taken from data from January-May 2007 and January-May 2008.
TOP FIVE GROWTH DESTINATIONS:
| Five biggest car rental growth locations |
Percentage growth Jan/May ’07-Jan/May ‘08 |
Average Booking Duration |
Booking Lead Time |
| 1. Orlando |
63% |
11.9 days |
45 days |
| 2. Cape Town |
61% |
9.8 days |
33 days |
| 3. Los Angeles |
59% |
10.1 days |
37 days |
| 4. Warsaw |
57% |
3 days |
21 days |
| 5. Geneva |
54% |
6 days |
21 days |
“Key to our biggest growth destinations is the ability people now have to book their car rental at the point of their air booking,” comments Greg Turley. “The growth in major international business and airport destinations is no surprise for us; we predict this area will continue to see significant year on year growth as more and more airlines capitalise on car rental ancillary revenue.
“The growth of Warsaw as a short haul destination is of particular interest. Not only does it reflect the strength of the Polish diaspora worldwide, but also shows the power of the airline/car rental tie up – LOT Polish Airlines was one of our first partners in 2007.”
TOP FIVE “ONES TO WATCH”:
The following five destinations are ones which have showed increased booking spikes over the past few months for a number of reasons – ranging from people looking for holiday “bargains” due to the credit crunch, to the strength of the dollar making the US an attractive destination.
| Five “ones to watch” |
Booking “spike” in past three months |
Average Booking Duration |
Booking Lead Time |
| 1. Las Vegas |
71% booking “hike” |
11.4 days |
50 days |
| 2. Barbados |
68% booking “hike” |
11 days |
17 days |
| 3. Newquay |
60% booking “hike” |
3 days |
24 days |
| 4. Marrakech |
57% booking “hike” |
8.6 days |
17 days |
| 5. Larnaca |
53% booking “hike” |
9.9 days |
55 days |
TOP FIVE CITY BREAK GROWTH DESTINATIONS:
| Top Five City Break Growth Destinations |
Percentage growth Jan/May ’07-Jan/May ‘08 |
Average Booking Duration |
Booking Lead Time |
| 1. London City Airport |
70% |
2.5 days |
7 days |
| 2. Sofia |
64% |
3.9 days |
30 days |
| 3. Bratislava |
61% |
4.8 days |
27 days |
| 4. Warsaw |
57% |
3 days |
21 days |
| 5. Jersey |
57% |
3.9 days |
37 days |
“It is interesting to note that, despite the credit crunch and predictions of a downturn in travel, consumers are still taking city breaks. However, the trends we continue to see throughout our data are that travellers are moving towards those short haul destinations where the pound is going to go further,” comments Greg Turley.
“We are also seeing a growth in car rental on city breaks, instead of relying on local transport. With the availability and ease of car booking on the internet and the ability to compare prices and get great value, more and more people are opting for the convenience of having their ‘own’ car no matter how short the break. They value their independence of travel and they like having their own personal space which a rented vehicle gives them.”
TOP FIVE LONG HAUL GROWTH DESTINATIONS:
“As with all growth markets, long haul destinations are focused on where the Pound, Dollar and Euro will go the furthest. However, there is more of an aspirational element in the fly-drive holiday. Perhaps most surprising is the huge growth in car rental in Barbados (Dollar-based destination). This is in part due to the strong marketing and brand Barbados has on this market, but also this is an ideal island to explore by car,” says Greg Turley.
| Top Five Long Haul Growth Destinations |
Percentage growth Jan/May ’07-Jan/May ‘08 |
Average Booking Duration |
Booking Lead Time |
| 1. Orlando |
63% |
11.0 days |
21 days |
| 2. Cape town |
61% |
9.8 days |
33 days |
| 3. Los Angeles |
59% |
10.1 days |
37 days |
| 4. Barbados |
59% |
11 days |
17 days |
| 5. Auckland |
57% |
12 days |
30 days |
KEY CAR RENTAL BOOKING FACTS AND FIGURES:
- Booking lead time (how long before the travel date is the car booked) has fallen from an average of 40 days in 2007 to 30 days in 2008
- Most popular type of car booked short haul is a Compact (e.g. a Ford Fiesta)
- Most popular type of car booked long haul varies. In the US it is a Full Size (e.g. Chevrolet Impala) whereas in other long haul destinations (Africa/Australasia) it is a Standard car (e.g VW Passat).
- CarTrawler has noticed a shift in where cars are booked. As highlighted by the consumer research below, the main channel is still car rental corporate websites, but from 07-08 there has been a significant swing towards airline sites (18% growth) and aggregator sites (31%).
CONSUMER CAR RENTAL BOOKING PATTERNS
In April 2008 CarTrawler commissioned a survey of just over 1000 consumers to quiz them on a series of car rental booking habits, looking at how and when they book their cars, and what influences their booking.
“Overall, price and choice are critical factors when renting a car. Therefore, consumers who come across a booking channel which provides them with these two key deciders (whether it be an OTA and airline site or a car rental specialist) are more likely to make their booking there and then and not look elsewhere,” comments Greg Turley.
Car Rental Channels:
Of all the consumers polled, 30% had rented a car in the past twelve months. They found their rental car via a number of channels. Currently consumers go directly to a car rental company corporate site (68%), but a growing number (14%) are now booking via airline websites or other channels (7%). However it seems that price comparison is now required wherever consumers book, with over 81% of those surveyed checking out a range of deals before making the final booking.
Brand Loyalty:
Shopping around certainly dominates our choice of rental car, with 54% being lead by price not brand.
“Shopping around is part of our psyche in an Internet age,” comments Greg Turley. “Having the capability to offer multiple suppliers is key for those businesses seeking to capitalise on the ready revenues to be made be selling car rental. By matching our offer to consumer demand (dynamic cross selling), CarTrawler is giving its partners a real opportunity.”
Last minute or early planning:
CarTrawler also surveyed consumers on booking lead times. It seems people are early planners when it comes to booking cars (especially when a family with children are involved), with over 50% making the booking at the same time as flight plans, and 20% booking at least a month in advance.
There is, however, still a significant portion of last minute planners, with 6% waiting until they arrive in destination to rent their car.
“Our own data shows us that the number of people leaving car rental bookings until the last minute, whilst still relatively low, is rising. This is often because – after booking their flight and hotel – a consumer has simply had enough. The booking process can be cumbersome and slow, and all too often car hire is not presented to the consumer at the right time or in the right way. To my mind, this is an unacceptable loss of sale, one which can easily be remedied by understanding what triggers a consumer to buy and hitting them at all the key trigger points,” comments Greg Turley.
Influencing Factors:
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