For a long time, renting a car was an easy process that many people included in their travel plans. However, the Covid-19 pandemic, the worldwide shortage of semiconductors, travel restrictions, and other factors have all contributed to an increase in car rental costs in numerous locations.

DiscoverCars, an international Car Rental Market has looked at data from 45 different locations to see how much the cost of renting a car for the day has changed.

The data show a worldwide average increase of 47%, with the average price of a one-day rental car rising from £43 to £67.
We talked to Anastasija Zubenko, head of partnerships at DiscoverCars.com, to find out more about the trends the company has been seeing and the factors that are affecting the market.

Anastasija Zubenko, could you briefly describe DiscoverCars and your position there?
(AZ) Anastasija Zubenko: DiscoverCars presently is one of the greatest and quickest developing vehicle rental specialists on the planet. Since our inception in 2013, we have provided rental cars from approximately 500 suppliers to more than 10,000 locations worldwide.

We strive to be the most dependable platform for car rentals by making the booking process clear, simple, and enjoyable, and by creating a seamless vehicle rental experience.

I have been with the company for six years and currently serve as head of partnerships, leading a team that oversees the management of our 500 partners in more than 200 countries. Every day, my team negotiates the best terms and prices for our clients with our partners. The group additionally assembles cozy associations with every one of the vehicle rental organizations we work with; We have a unique perspective on the rental car market.
Might you at any point make sense of the ongoing vehicle employing scene and what the issue of semiconductor supply lack has meant for it?
Although not directly, the semiconductor supply shortage had an effect on the rental car industry. When the pandemic struck, the car rental industry was close to going out of business entirely. Those businesses that did not completely close their doors had to find a way to survive, which meant selling their fleet.

The new fleet did not arrive on time as the industry slowly started to recover because car manufacturers were forced to reduce production and delivery targets due to a shortage of chips and a supply crunch. Likewise, new agreements were marked carefully since nobody could foresee whether the business would get back to pre-pandemic levels.

Even though the growth trend is superior to that of the travel industry as a whole, the car rental industry has not completely recovered from where it was in 2019.

The landscape of car rental varies and continues to vary based on continent, nation, and even location. The pandemic's restrictions, market structure, and even people's mentality all had different effects on the industry.

For instance, by not having to sell all of their fleets, car rental companies in nations where domestic travel was permitted and the infrastructure for it was well-developed were able to recover more quickly.

Additionally, each island has its own unique circumstances. Car rental companies were able to maintain sufficient domestic traffic in spite of their isolation from the rest of the world to survive, but they continue to struggle to acquire new vehicles due to a lack of vehicles and deliveries that nearly stopped. As a result, prices have skyrocketed in places like Portugal's Azores Islands and Spain's Canary Islands and Balearics.

When looking into what is causing the price increases, are there any additional factors that should be taken into consideration?
Naturally, a number of factors have contributed to the current situation in the rental car industry. There was a greater concentration of the market as a result of the exit of several car rental companies. It turned out that the actual demand was higher than many people had anticipated when restrictions were lifted because it was impossible to predict the amount of demand that would result.

Finally, there was a shortage of cars, particularly new ones; consequently, many rental car companies strictly adhere to a policy of only purchasing new vehicles.

Only a few nations have a large number of businesses that buy used cars for their fleet. Examples include Greece, Bulgaria, and New Zealand. Prices did not rise as much because there was a smaller supply of rental cars in these nations.

When you examine the company's data, what other patterns do you observe?
Intriguingly, prices are currently falling rather than rising in some regions, particularly continental Europe.

That is due to a number of factors.

The first is the labor crisis, which has resulted in flight cancellations throughout Europe, reducing traveler demand for car rentals. People have either chosen to travel with their own vehicle more frequently or have chosen other modes of transportation as a result of the uncertainty surrounding flights.

Inflation is the second. Customers' behavior has been profoundly affected across the eurozone as a result of the record annual increases in consumer prices brought on by skyrocketing energy costs. As a result, many customers have chosen to cut back on discretionary travel.

Because of this, demand has decreased in some popular vacation destinations where the additional fleet has already arrived, resulting in lower prices.

In the near future, what do you anticipate happening in the rental car industry?
Similar to last year, we anticipate a slight extension of the peak season this year. Typically, holiday travel ends in September, with October being the first "silent" month. However, this year, the season continues into October.

The airline crisis also has an immediate impact on the industry's future. Prices and volumes of car rentals in Europe may decrease if this trend continues.

Again, the possibility of new Covid restrictions makes the travel industry, as well as the car rental industry, extremely volatile. As a result, businesses may once again sell fleet components this fall, which will likely result in high prices and a lack of automobiles the following year.

And the sector's long-term trends?
We see technology as the future. In light of what customers want, the car rental industry may soon undergo a transformation. They don't want to communicate with staff or wait in long lines.

As a result, many people in the industry are utilizing technology to speed up and smooth the experience. This includes keyless entry, touch-screen kiosks, and online check-in, which are replacing traditional rental desks at airports. Some of these have already been implemented by a lot of businesses all over the world, and we anticipate that this trend will continue to grow in the years to come.