Showing posts with label shortage. Show all posts
Showing posts with label shortage. Show all posts

Tuesday, March 20, 2012

A shortage of rental cars in Easter Week is expected

A shortage of rental cars for the Easter holidays is expected again as a consequence of important companies's closedown of the sector because of the crisis.

Days pass fast, and by leaps and bounds approach one more year the first holidays of this year 2012, the Easter Halidays Week, beginning this year on Thursday the 5th of April. Because this is a very short vacation, a lot of visitors, most of them foreign people, prefer to come by plane or train and once arrived in destination, would like to rent a car.


Up to date we could see really low prices for car hire. As a tradition, many of the foreign customers have reserved their cars with a few months in advance, in order to be sure that will have a confirmed reservation and at the same time to get the best prices available. For example until only 2 weeks ago we could book a car hire at Alicante airport for less than 100 euros per week.

However, as dates are closer to the Easter Week prices begin to increase. For example now we can hire a car in Murcia from 130 euros and everything points that prices will increase as Easter holidays aproches.
But why do the prices increase?
As we already know the big majority of car hire companies renew the cars of the fleet constantly and as soon as the low season arrives they sell most of the vehicles, keeping the right number of cars for the winter season.
This year the economic situation is very dificult and finding finansation it is now a real challange for most of the companies. Beeing in this situation the companies can not renovate their fleet of vehicles. This way the big majority of car hire companies will have to resign with buying a lot less vehicles that the normally acquire buy this time.

As well is very important to point that important companies of the sector have suspended its activity as a consequence of the financial crisis in which Spain is immersed.

Conclusively, there are less car hire companies and the ones that support the pressure will a minor availability of cars for hire. This situation involves a shortage of fleet in curcial seasons like Easter Week and summer, besides a predictable rise of prices by this time.

How does this affects the travelers?
When the number of vehicles is very low, the companies have no other choice but to increase prices and many times the ones that makes last minute reservations will have to pay very high prices. This is all the way round than in a normal situation, when the last minute bookings haves special discounts.

The ones that have decided to rent their car until today, can say that they have paid a really low price for the Easter holidays. The ones that want to rent a car, it will be advisable to make theis booking now, and so will be sure they will pay a moderate price and at the same time being sure that they will have a car hire for those dates.

What about you? Are you going to risk and not hire a car until the last moment?

Wednesday, September 9, 2009

Car Hire Murcia - shortage on rental cars continues.

Now it has became common knowledge. The car rental companies in Spain run out of cars due to the high demand in the current peak season.

After having experienced a similar situation during last Easter, VictoriaCars already foresaw the difficulties for the summer rentals. Given the situation, VictoriaCars - Car hire Murcia informed its customers of the possible shortage during the summer peak season and encouraged to make reservations in advance.

However, many customers have been waited until the last minute and finally could not get a car. Because inevitably, VictoriaCars had been run out of available vehicles, like many other Spanish car rental companies, too.

The question now is, are we dealing here with one particular case or should European holidaymakers be prepared for further shortages during peak periods.

According to some forecasts, the current scarcity will last until into the fall. Not only that, it is anticipated that this situation will extend to all existing holiday periods during the year (Christmas, Easter, bridging days, long weekends and so on) and even to the summer 2010 campaign.

Moreover, the scarcity is not the only problem: the current situation has caused a substantial increase of car rental prices by the companies in this sector. A car hire Murcia presently can cost up to 30% more than for the same period last year. It is a question of the "law of supply and demand."

Obviously, the cause of this situation can be seen in the economic recession Spain is experiencing. On the one hand, companies in general are suffering from the lack of financing, that also prevents that companies within the car rental sector in particular can expand their fleets. Moreover, even when financing is provided, the difficult times companies in the automotive sector are going through make them highly unlikely to sale their new cars to car rental companies. The common custom that a car hire enterprises could acquire a vehicle for a agreed period of time, and after wards could be sure that the rental car would be repurchased by the dealer is almost abolished. The car dealers are not willing to collaborate to these conditions as these repurchases saturate the second-hand car market and make it more difficult to sale new cars.

To put it in a nutshell, VictoriaCars - Car Hire Murcia, points the difficulty of its branch out to its customers and expects them to take measures and precautions, so they can enjoy the next Spain holidays with a car hire Murcia Airport , Alicante or Madrid.