Reporting on the impact of COVID 19 on the European Car Rental Industry, "Rate Gain" claim that rental rates "were looking to go up at the end of April" as the rental industry was expecting that the nationwide lockdown would be over before the early May Bank holiday." However, with the lockdown extending, car rental companies were not able to maximise revenue and this presents a stark picture of how car rental rates have moved in comparison to last year.
A large portion of the revenue for the UK Rental industry is driven by inbound tourist and business activity and so, if restrictions in International travel had occurred, this would push domestic travel throughout the United Kindom and hence demand for car rentals up. If it were not for the quarantine imposed as part of the UK lockdown strategy, the forecast from Rate Gain was that recovery would have started in June with an improvement of almost 50% in volume by July. That now appears unlikely but the recovery may well just be delayed if the quarantine proposals relax.
Whilst the report is not that detailed and recognising that it is geared towards the UK travel and tourist sector rather than the UK retail rental market, it does show the primary pressure facing the rental giants and the impact that tourist volume has during the summer months. A copy of the report is available here: