Rental companies are expecting a busy summer for car hire. Foreign rentals are down, while rentals are taking longer to complete.
The hottest season for car rental, the summer holiday season, is fast approaching. Rental companies are expecting a busy summer in the aftermath of the pandemic, although there are still far fewer foreign renters than before the pandemic.
There has been a substantial change in rental periods in just a few years.
According to Ilose, long-term rentals are concentrated in the Helsinki metropolitan area
– Monthly renting, which is also called mini-leasing, seems to be a really interesting option for many.
Growth of almost 60 %
Average rental periods have increased by nearly 60 percent in five years. In 2017, the average rental period was 4.7 days, last year it was already 7.5 days.
According to Ilonen, longer rentals are largely focused on summer. Summer is the number one season for car rentals anyway, although winter is also a busy rental time in Lapland.
– If the summer car was bought from a car shop before, today the car is taken over by renting it for a few months. Otherwise, a lot of cars go as second cars to families and also for various business needs, Ilonen says.
The majority have their own car
Renting a second car reveals an interesting fact: the majority of renters already have their own car.
– According to our customer survey, 68 percent have a car, so renting is not just for people without cars, Ilonen says
– One car is not necessarily enough to meet all the family’s mobility needs.
Asking for more
But what kind of car is rented? What is the summer car hit of the coming holiday season? According to Ilonen, the size wishes for cars have increased in recent years: they ask for bigger ones.
– A summer car hit? It would be nice to say convertible here, but yes, car rental is very need-based. We are looking for four doors and with as big a tailgate as possible. In the summer, it goes with the family farm spirit. The other is an affordable small car. They always have their own demand group, Ilonen says.
Electric cars have also made inroads into car rental.
– The rental car fleet is becoming electrified, but a little slower than the car dealership, because ease of use and even familiarity are essential for customers. Electricity is gradually becoming more common among a wider group of people as a driving force.
Ilonen cannot say the average summer rental for cars, because there is no such thing.
– Pricing is dynamic, online prices. You should follow the internet and be on the move in good time to get what you want.
The turnover of the car rental industry is around 180-180 million euros. The share of the largest car rental companies is around 80 percent.
The number of car rentals is half a million per year. The industry employs about 1,500 people, including part-time workers.