Car Hire Demand Increases

The appetite for rental cars along the Costa del Sol is smashing through previous records. Reservations have soared to unprecedented levels, surpassing 2019’s figures by a significant 2%, a year that stood as a pinnacle for coastal tourism.

Data from the National Business Federation of Car Rental with and without Drivers (Feneval) reveals the Costa del Sol’s prominence as the foremost performing destination on the Spanish mainland.

Juan Luis Barahona, at the helm of the federation, observed that the sector’s momentum has been fortified not just by domestic tourists, but by an influx of international visitors as well. The primary clientele comprises travellers from Germany, France, Italy, the Netherlands, and the United Kingdom.

Amid these escalating demands, Ana María García, President of the Association of Vehicle Rental Service Enterprises (Aesva), noted that the entirety of the fleet is being deployed to satisfy the surge. García acknowledged that while rental prices have experienced an uptick, they remain below last year’s rates. She underscored the profitability challenge within the sector, attributing it to rising energy and personnel expenses, alongside vehicle costs that have escalated by up to 30%. She remarked, “This season’s challenge lies in managing these heightened costs.”

Juan Luis Barahona expressed his optimism, stating, “The prevailing data, as far as occupancy levels and booking rates are concerned, indicate an imminent return to normalcy this summer. This is certainly encouraging, considering that car rental constitutes a cornerstone of the tourism ecosystem. Presently, we are overseeing around 650,000 vehicles—passenger cars and commercial vehicles combined—compared to the fleet of over 800,000 cars in 2019.”

Feneval, a consortium encompassing over 800 companies engaged in more than 20 million annual services, recently petitioned the Ministry of Industry, Trade, and Tourism to earmark 20% of all new vehicles in Spain for rental cars.

In spotlighting the Costa del Sol’s demand, Ana María García accentuated the destination’s robustness. She highlighted that 80 to 85% of car rentals across Andalucía are concentrated along the Costa del Sol. She emphasized the robust tourist service furnished by the car rental sector and advocated for it to be accorded the preferential 10% tax rate aligned with other tourism activities.