Car hire prices could rise in 2010

The shortage of available vehicles at car hire companies this year had led to an increasing demand and higher prices, making this a bumper year for car rental agencies even in the face of the economic downturn.

As global travel slowed, UK car rental agencies made quick changes to their strategies, ceasing the purchase of new vehicles and streamlining the use of their existing fleet. The result was a huge demand for whatever cars were available, and car hire agencies were actually left quite unscathed by the economic downturn this year.

Neil Abrams, president of the Abrams Consulting Group has commended UK car hire agencies for good financial management and effective cost-cutting strategies, which have allowed the sector to keep prices stable, even as airline fares and room rates for hotel have tumbled across the UK and the globe. He also lauded the “sensible” pricing standards adopted by the car hire sector, which together with the discounts and special offers provided have encouraged the ‘staycation’ trend in the UK.

Some experts, however, are now suggesting that as the economy limps back to normality, car hire companies could be planning to increase their prices, to cash in on the recovering financial scenario. The discounts, special deals and even regular prices we saw this year may be a thing of the past, the experts warn.

Travellers have been advised to book their car hire for 2010 early, to avoid last-minute disappointments as well as price hikes expected in 2010.