Spain suffering from shortage of rental cars - Car Rental News
Spain suffering from shortage of rental cars
Car Rental News - 21/12/2009
Rental agencies still hesitant to build new fleets
Facing immense strain during the economic downturn, the car rental market had to implement many cost cutting measures to stay afloat. Restructuring the companies, depleting their fleets of cars and closing down branches were some of the tactics used by the car companies.
Car rental agencies, especially in Spain, predicting a bad year, did not expand their fleet and decided to make do with the existing ones. However, during summer months, the demand for rental cars shot up and many tourists visiting Spain had to make do without rental cars as the companies struggled to cope with the increase in demand.
Those visitors who were lucky enough to get a car at the last minute had to pay nearly three times the price for rentals. Exorbitant insurance packages and increased extras were applied to last minute customers. Many tourists were shocked at the rise in prices.
As the summer season waned and winter has begun, Christmas and New Year also see a marginal increase in average car rentals albeit not as high as summer. However, most car rental companies are not willing to purchase a new fleet of cars. Most firms have decided on selling their old cars but waiting until next year to make financial commitments on their parts and buy new ones. Thus people that have gone to Spain for the festive season are again hit with a shortage of rental cars. Also, many have complained about the exorbitant levies charged by the companies