Strong currency means the price is always right

Price focus

Strong currency means the price is always right

Car-hire rates tumble for 2001

THERE has never been a better time to rent a car, as competition and the strong pound keeps the pressure on rates.

Pelican director John Swindell has just finalised rates for next year and said many are £2-£3 a week lower than this year.

Europcar marketing director Kirsten Roennau said the price of an economy car rental has fallen this year by about £20 since January.

“In January, a week’s rental from one of the major companies would have cost the customer around £190,” she said. “In August, the cost was more in the region of £165 to £175.”

Roennau said one of the reasons for the drop is competition, as the larger companies try to grab a bigger share of the leisure market.

“An average leisure rental is for seven to 10 days, so it is a more stable sector for companies to focus their energies on than business travellers, who rent for an average of two to three days,” she added.

Swindell said: “We have managed to reduce our rates through currency movements and heavy bargaining with our suppliers, so they could come down even more in future.”

Pelican is a broker, which means it puts its business with a range of car-rental companies.

Spain is always heralded as a cheap destination for car rental, but Premier Car Hire co-director Irene Morrison said this year it is even more of a bargain due to the strength of the pound against the peseta.

“We are offering Malaga from £59 a week this winter and it is only £69 to trade up to the next size car.”

She added: “The low rates are definitely encouraging people to book more car rental. It is cheaper than trying to get around by taxi.”

Connect Car Rental managing director Adrian Duthie said rates this summer are more than 10% down on last year due to the strength of the pound.

“Rates in Spain in general are very good and Italy is the cheapest it has been for three years,” he added.

As an indication of how prices are falling, last year Premier offered Italy from £185 a week. That has fallen to £166 a week in the latest published brochure.

In 1996, Suncars offered a week in France for £193 in summer. A similar three-door car now costs £135. Italy cost £214 in the summer of 1996, it is now £169.

However, in the US, the strengthening dollar could start to stabilise or even increase car-rental rates, said Suncars general manager John Briggs.

“Prices are still coming down but there has got to be a point where they stop falling,” he said.

“I don’t think it would impact on our business provided we do not make pre-booking rates less attractive than booking in resort.”

&#42 Holiday Autos is offering late-availability car rental on its Web site, aimed at shifting stock one to two weeks before departure.

How low can you go? Car rental to Italy is the cheapest it has been for three years

Best buys

Best buys

France: Connect Car Rental is offering a Ford Fiesta in Nice for £119 a week, down from £235 in 1999. A convertible car is now available for £195.

Spain: Premier Car Hire is offering a Peugeot 106 three door for £69 this winter, down from £79 last year. Suncars is offering Malaga from £69 for a week. An economy car in Barcelona for two weeks costs £195.

Canary Islands: Holiday Autos is offering a Fiat Cabriolet two door or similar for £249 a week until October, down £50 on the previous price.

Florida/California: Pelican is offering an economy car for one week fully inclusive from £189 next year, down from £197 this year.

US: Pelican is offering an economy car from £205 for seven days next year, down from £213 this year. Connect is offering a Dodge Neon in California for £168 this year, down from £189 last year.

Cyprus: Europcar offers an economy car in Ayia Napa for one week for £85.

Italy: Holiday Autos is offering a one-week Fiat Punto rental on three door or similar for £199 until October, saving £10.

Spain: even more of a bargain than ususal this year