The cost of renting a car on holiday this Easter is 72 per cent more expensive on average than the same period in 2019, according to new Which? research.
Which? examined data supplied by car hire broker Zest Car Rental for over 5,000 rentals in nine popular holiday destinations including Spain, France and the US, and found that seven out of nine destinations the consumer champion examined have seen weekly increases of over £100.
Cyprus has seen the most dramatic price rises, with the average daily rental rate more than doubling this year when compared with before the pandemic. A seven-day rental would now set holidaymakers back £248, up 112 per cent on pre-pandemic rates. Portugal and Greece were not far behind, with increases of 99 and 97 per cent respectively.
The USA was by far the most expensive country, with holidaymakers shelling out £537 per week on average, adding £239 onto the cost of a holiday compared with 2019.
Despite seeing the smallest price increases overall, at 25 per cent, France nonetheless emerged as one of the pricier regions to rent a car, with a week’s rental costing £364 on average.
In the face of widespread vehicle shortages, the cost of car hire rose hugely last year. While companies have now had an opportunity to begin restocking fleets that were sold off during the height of the pandemic, rates have not dropped as much as might have been anticipated, instead settling far higher than travellers were accustomed to pre-pandemic.
Demand remains extremely high this year, contributing to increased costs. Zest Car Rental reports that advance bookings are up 132 per cent compared to the same point last year.
Rental firms are also facing increased staffing and insurance costs, while cars themselves are also becoming more expensive – estimates by Zest suggest that the cost of purchasing a Fiat Panda, one of the smallest typical cars in a rental fleet, now costs around £5,000 more on average than in 2019.
Jo Rhodes, Deputy Editor of Which? Travel, said: “High demand combined with a shortage of rental vehicles means prices across Europe and the US are still incredibly high compared with before the pandemic.
“Shop around and book in advance to lock in the most competitive rates, especially during peak periods. Use recommended companies, or small local firms endorsed by a trusted broker, and always be wary of ‘too good to be true’ prices.
“Paying in advance, if you can, often works out cheaper overall and helps secure your booking. We also recommend taking out third-party insurance before you travel; in the past, we’ve found hire companies selling inferior policies at the desk at marked up prices.”
