Rental peaks and high prices this summer. Followed by cancellations and normal prices in the fall. Corona restrictions are shaking the rental car industry.
”It's very exciting,” says Hertz Marketing Manager Anders Tärnell.
This summer, car rental prices in Sweden skyrocketed. The coronavirus pandemic put a stop to many people's plans to travel abroad, and "homestay" became an everyday expression.
In July, car rental prices rose by 68 percent, compared to prices in July the previous year, according to Statistics Sweden (SCB).
”"The summer was very special and compressed into one month when everyone was supposed to have a car at the same time. But since then prices have dropped to more normal levels," comments Anders Tärnell, marketing manager at the car rental company. Hertz, in an email to TT.
This is also reflected in the statistics. Between July and August, prices fell again – by 33 percent – before stabilizing again in September and October.
”"It's very volatile, almost everything is connected to what the Public Health Agency communicates," says Anders Tärnell.
When the government and the Public Health Agency urged people to stay home and avoid travel this spring, car rental prices also fell – by 10 percent between February and March and by a further 6 percent between March and April, according to Statistics Sweden. They then increased sharply when the spread of the infection decreased and the recommendations were eased.
Hertz has noticed a similar pattern of fewer bookings and more cancellations during November as local public advisories began to tighten in region after region.
”"After that, it looks like customers are planning for Christmas and New Year's holidays and it looks like it will be well booked," says Tärnell.
Overall, however, the corona pandemic has hit Hertz rental hard, according to Tärnell, who is seeing a sharp decrease in demand.
”"This whole year is a dramatic loss compared to 2019. Some of our rental offices have lost 90 percent, others have perhaps increased slightly," he says.
The worst situation, unsurprisingly, is in airport rentals.
”"It's an extremely large loss. It's connected to the entire aviation industry. Even though Sweden has been open, many other countries have been closed, so it affects us of course."”
SourceTT
