Car-hire prices double for Easter breaks in Portugal, Greece and other popular destinations

The cost of car hire across Europe remains significantly higher than before the pandemic despite improving supply among rental companies. Prices in some popular tourist destinations are more than double the 2019 rates, research published on Friday by the consumer watchdog Which? suggests.

The British consumer group examined data supplied by the Zest Car Rental brokerage for more than 5,000 rentals in nine popular holiday destinations, including Spain, France and the United States, and found that seven of them have recorded weekly increases of about €110 since 2019.

Cyprus has seen the most dramatic rises, with the cost of the average daily rental more than doubling. A seven-day rental would now set holidaymakers back €280, up 112 per cent on pre-pandemic rates. Portugal and Greece were not far behind, with increases of 99 per cent and 97 per cent.

The US was by far the most expensive country, with holidaymakers having to pay just over €600 a week on average, so adding €270 to the cost of a holiday compared with 2019 prices.

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Despite seeing the smallest rise overall, at 25 per cent, France nonetheless emerged as one of the more expensive places to rent a car, with a week’s hire costing an average of €411.

Although the survey was carried out from the UK, the prices are likely to be reflected in the experiences of many Irish holidaymakers booking cars over the Easter holidays.

[ Holiday costs are on the rise, so how can you save money? ]

In the face of widespread vehicle shortages, the cost of car hire rose hugely last year. Although companies have now had an opportunity to begin restocking fleets that were sold off during the height of the pandemic, rates have not dropped as much as might have been anticipated, instead settling far higher than travellers were accustomed to just a few years ago, Which? says.

Demand remains extremely high this year, contributing to increased costs. Zest Car Rental reports that advance bookings are up 132 per cent compared with the same point last year.

Rental firms are also facing increased staffing and insurance costs; cars are becoming more expensive, too, with estimates suggesting that a Fiat Panda, one of the smallest typical cars in a rental fleet, now costs about €5,650 more to buy on average than in 2019.

“High demand combined with a shortage of rental vehicles means prices across Europe and the US are still incredibly high compared with before the pandemic,” says Jo Rhodes, the deputy editor of Which? magazine.

[ Tighter budgets, TV-themed breaks, solo trips and working-holidays: Travel trends to watch out for in 2023 ]

She advises people to shop around and book in advance “to lock in the most competitive rates, especially during peak periods”, and to “use recommended companies, or small local firms endorsed by a trusted broker, and always be wary of ‘too good to be true’ prices”.

She suggests that paying in advance often works out cheaper overall and could help to secure a booking. “We also recommend taking out third-party insurance before you travel; in the past, we’ve found hire companies selling inferior policies at the desk at marked-up prices.”

Prices were based on the average daily rate across all car categories over the Easter holidays in 2019, 2022 and 2023 in nine destinations: Spain, the Balearics, Portugal, France, Italy, Greece, Cyprus, Madeira and the US.