Balearic vehicle rental sector rules out cheap deals with 30 percent less cars

PALMA
THE Balearic car hire sector itself yesterday ruled out any great offers this year after revealing that the association's members have not increased the size of their fleets since making cuts of 30 percent last year.

Consumer watchdog bodies in both the UK and Germany have been closely monitoring the holiday car rental situation in Europe's top destinations this year and Majorca has emerged as one of the most expensive locations to rent a vehicle this summer.

Last year, the number of rental vehicles in the Balearics was cut by 30 percent from 50'000 to 35'000 and there is going to be no increase this year.
However, the President of the Balearic Association of Rental Vehicles, Ramon Reus, said yesterday that over the past six months, some 10'000 vehicles have been exchanged for newer models with the manufacturers in preparation for the coming summer season.

But, due to the continuing recession, neither the rental companies not the banks have the liquidity to fund an increase in vehicles. “We still can't afford to speculate,” Reus said yesterday.
Reus did howecver confirm what scores of Bulletin readers and the international consumer watchdogs have been complaining and warning about - a lack of cheap car hire.

He said that the recession has “sorted the men from the boys” in the car rental industry and explained that the Internet based vehicle rental outfits hiring small vehicles for 10 and 12 euros per day are going to run short of vehicles very quickly.

ON LINE OPERATORS
Average vehicle rental rates can be expected to be between 35 and 45 euros per day and Reus said that this is helping to revive the car rental sector which has been hard hit over the past two years by the economic crisis, a drop in tourists and being heavily under cut by online operators.

Bob Atkinson, travel expert at Travelsupermarket.com, said: “Two years ago Spanish business was going through the roof, with thousands of people coming out every week to their holiday homes. “Car firms responded with massive fleets. Since then, the market has collapsed and car hire firms have responded by slashing their fleets, with many struggling to get financing.” He warned that car hire companies were not only putting up their prices, but had started introducing “sneaky” fees, including charging for a full tank of petrol (another complaint from many of our readers). “This means that travellers who only use their car to drive to and from the airport can end up being charged for the half tank of petrol they did not use. “Spain is the only place that I am aware of that started this sneaky practice, but I should not be surprised if it spreads,” he said in a recent report published on the eve of the Easter holidays warning that, in general, car hire rates have risen by two thirds over the last year.