By Darren Cronian on Monday, July 13th, 2009

A consumer issue was brought to my attention this week with regard to the holiday car hire on the Costa’s in Spain. There are stories of people arriving at Alicante and Murcia airports having previously booked, to be told on arrival that no car is available, or that the booking had been cancelled.

Car hire shortage in Spain an issue for holidaymakers

Inflated car hire prices in Spain

Some of the members on the Lay My Hat forum have said that the shortage of cars is relating to the recession; car hire companies are unable to purchase loans, so the number of cars available for hire has dropped and this has meant that the car hire companies have drastically increased the price.

Shortages of vehicles

Just last month Carrentals.co.uk reported that tourists could be presented with the possibility of missing out on car hire altogether this summer as providers in favoured locations including Alicante, Malaga, Palma report unusually high demand for cars.

I asked Auto Europe about the situation and their response was that they predict that hire cars will sell out in some popular holiday destinations during July and August. Spain is currently challenging with shortages of vehicles predicted in: Malaga, Alicante, Mallorca, and Barcelona.

Could this not be simply that it is a peak time of the year, or is this a first?

Holidaymakers cancelling holidays

This is a particular problem for people who rent their holiday homes in remote areas of Spain and whose customers will rely on car hire. Some holidaymakers are cancelling because they have been quoted over £400 for two weeks car hire, more than the cost of the flights.

Holidaymakers could be disappointed

Many holidaymakers heading to Spain could be disappointed, especially if they have left it until the last minute. I am interested to hear from consumers who have had their car hire cancelled or witnessed the price hike, or are you a holiday homeowner affected by this price hike.


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20 responses to “Car hire shortage in Spain an issue for holidaymakers”

Steve Jones | 14 July, 2009 at 7:54 am

I recently visited Spain and found that the prices for car rental were quite expensive due to the lack of availability.

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Darren Cronian | 14 July, 2009 at 8:05 am

@ Steve

Thanks for sharing your experience, but I have removed the link to the car hire company you obviously work for.

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Lisa Corcoran | 14 July, 2009 at 4:05 pm

I knew there was something going on because I usually leave it late to book a car and normally have no problem! I couldn’t believe it this year when I searched around to find cars sold out or huge price increases.

I am renting a car from Palma airport and have had to pay over double the normal price for a week’s car hire. Unbelievable! I don’t like paying this much for car hire but without a car the holiday would definitely not be the same.

All the car rental companies at Palma airport have increased their prices so you just feel stitched up!

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Nick | 15 July, 2009 at 10:26 am

Add menorca, the list is growing fast Darren.

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Richard Holland | 16 July, 2009 at 11:43 am

We have just booked a holiday in Almeria province arriving in Alicante at beginning of August. Flights and accomodation are booked but car hire is a real problem. We are a party of 6 so require an MPV. In previous years, we have had no problem, but this year is proving a real worry. We have had to book 2 smaller cars which is going to cost us in excess of 1200 GBP at the vastly inflated prices but it seems our choice is severely limited.

Still looking desperately but not holding out much hope. Several things are annoying about this situation apart from the blatant profiteering of the hire companies. The situation should have been publicised more by both the UK national press as well as the agent the accomodation was booked through informing us, in order that people could make an informed decision regarding their holiday plans. If you have booked a flight, chances are you wont get your money back if you decide to cancel.

A car is essential for a lot of areas in Spain and if you arrive at the airport and the booking fails to materialise, that is just plain wrong! Surely the whole Spanish tourism industry is going to take a hammering not just now, but for years to come because of this as I certainly will be thinking very carefully about returning there in the future. The banks have a heck of a lot to answer for, thats for sure. I hope others have more success than we are having at the moment.

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janette clark | 16 July, 2009 at 8:46 pm

We have just been told by our carhire company that a car no longer is available for us to collect from Valencia. As we booked and paid for this in April I find it dreadful that Spanish companys can do this with just four days notice. We have spent hours trying to book another car with no luck at all. Don’t know what we will do as Villa is quite remote, no shops or anything. As we leave on Sunday I feel we may be on the bus if there is even one. I think the tourist trade in Spain will really suffer as I for one will think twice about going again, and we go at least three times a year.

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Tony White | 19 July, 2009 at 9:27 pm

We have been looking for a car to hire all w/end in Alicante, there definatley is a shortage and I can’t find a small car for less than 370.00 for a weeks hire.

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Rob | 21 July, 2009 at 1:54 pm

Just gave up my flights to Spain and cancelled my long let apartment arrangements in Murcia, due to this. Last year we spent £350 for 3 weeks, this year, £1,150 quotes, when/if available. Booked another holiday (car not required) in another country! Good luck for the future Spain.

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kev | 21 July, 2009 at 11:04 pm

Like many others, the price hike is making our trip to spain to expensive. i don’t understand the prob of the rental companies when car manufacturers are practically giving cars away to fleet buyers, seems like a price hike scam .

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Darren Cronian | 22 July, 2009 at 11:35 am

@ All

Thank you for leaving your experiences. Interesting to hear the problems you’ve had trying to rent a car in Spain.

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Pingback - BitterWallet | 22 July, 2009 at 2:30 pm

[...] search around the web reveals a possible cause – Travel Rants suggests the shortage of cars is because of the recession, with companies unable to purchase enough [...]

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John Evans | 25 July, 2009 at 4:40 pm

We have the same problem at Faro in the Algarve, prices have doubled and even trebled in some cases. There are a couple of interesting articles about how the credit crunch lead to the shortages of cars here:

http://www.telegraph.co.uk/travel/columnists/nicktrend/5283811/Travel-advice-Holiday-car-rentals-could-be-scarce-this-summer.html
http://www.free-press-release.com/news/200907/1248539154.html

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julie edwards | 25 July, 2009 at 7:57 pm

We have also had this problem. Have got flights to go to stay in our holiday home but have been quoted 1200euros for 20 days car hire. Just won’t do it – would rather go somewhere else and waste the flight price. Could be a real problem for the accomodation rental market. People will not rent without being able to get a car. They will just go somewhere else. Thought Spain was trying to turn it’s tourism industry around in the recession!!

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Jonathan Sellers | 26 July, 2009 at 9:39 pm

Just bitten by the credit crunch…. Apparently no one is lending money to the car hire companies in Spain to buy cars with. Demand is high, supply is low and it’s just cost me nearly 3 x as much as last year….. Irony is that there are literally ’000s of new cars all over Europe rusting in monster sized car lots.

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Peter Lockyer | 2 August, 2009 at 9:06 am

My nephew recently arrived at Barcelona airport to be told that the prepaid voucher he had for a three day car hire was no longer valid although it had been issued direct by National Atesa themselves. He was directed to an Avis desk where he was given a Volkswagen Passat estate on limited mileage for 418 euros for a three day hire. The choice was simple. Pay it or go without a car. At the same time I was watching the MOto GP from Donington in my apartment on Spanish television. All I could see as the bikes roared round was advertising presumably from the Spanish Tourist Board with the words ‘Visit Spain’. Can someone, anyone, tell me, why anyone would want to “Visit Spain” if this is the type of treatment visitors receive the very moment they actually arrive on Spanish soil? I was actually born in Spain and I feel ashamed of what is happening. Can I suggest that as many people as possible write to the Spanish tourist board and Spanish embassy to express their outrage and disgust at what is happening with Spanish car hire at the moment and leave them in no doubt that unless something is done people will simply stop going to Spain or where possible choose the option of driving down to the country?

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Mark | 8 August, 2009 at 11:29 am

We have an apartment in Vera, Almeria which at least 1 hour’s drive from the nearest airport. Luckily our holiday rentals haven’t been affected by this at the moment as most of our guests are from mainland Europe and bring their own cars.

On the Eye on Spain forum I use, there are plenty of posts about people queueing at the arrival airport (Alicante, Murcia, Almeria) to find no vehicles available. One of the big brokers is offering to refund the difference between the original booked price and the subsequent increase, but to date I have not seen anyone successfully receive a refund. 99% of the time we use a broker and we collect our car from a van in the car park. Very reliable service and never been let down yet. Paying on arrival is another benefit.

In response to Richard Holland’s post above, this situation has been known about since at east March this year as we were advised by our reguar broker that we use when we go to Spain. The BBC have only picked up on this today when the problems have been evident since the beginning of July. I agree, holidaymakers should be made aware that there is a shortage this year ad advise to book the hire early, but how far do you push it? I always book a car when I book a flight. I use two sites and compare, then make a booking. One week before departure I check them again to see if the price has dropped, in which case I cancel one booking and make another. I try to advise UK guests of this as well, but people will always wait until the last minute to try and grab a bargain.

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Sara Jones | 12 August, 2009 at 1:20 am

I have a villa holiday company near Alicante and we hire cars for our clients, and this year have had nothign short of a nightmare locating the cars.

Cna I just say thought that I know first hand why this problem has occured.

In light of the credit crunch, banks expected tourism rates to decrease, and were also nervous and by result, they did not extend credit to the car hire companies.

Car hire companies by their cars on credit, rent them, then pay back the loansa t the end of the peak season. That is how the survive.

They work on very small margins, and rely on cheap credit, and the ability to easily sell their fleet after the season.

With no credit to buy cars, and no car purchase market to sell their fleet…car hire companies could not provide enough cars to meet demand.

Once money did start flowing in, they were still unable to purchase additional vehicles as the manufacturers had simply not made them. it is impossible to buy an MPV in Alicante for 2 months!

I realise this is no excuse for late cancellations and other administrative errors, but car hire companies for the most part work off a very large number of no shows, and they have never been unable to get cars before. They were not equipped to cope with the crisis, and many of them will simply go out of business.

A very sad result of the credit crunch, but please…DO NOT blame Spain!

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Mark | 30 August, 2009 at 6:38 pm

A guest of ours has arrived at Almeria airport today having booked a car with a broker on Thursday. This was a very late booking, so there is no excuse for the companies still overbooking on a bank holiday weekend. The lady was left stranded at the airport with her 8 year old son and 2 suitcases. She ended up taking a taxi which cost her €80 (her hire car was going to be €84 for 3 days!!) and of course will need one back on Tuesday.

It is totally unacceptable that the car was offered, even allowing for no shows. The fact she was what I would consider to be a vulnerable traveller makes the situation even worse.

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John Nelson | 13 January, 2010 at 8:46 am

So that’s what’s been going on this past year! I’ve lived here in Madrid for years and years and always rent a car for vacations, and this past year the prices were far too high at multinational rentacar companies and local operations alike, so I ended up borrowing my sister-in-law’s car for August. Even in low season, in January 2010 we had to forego on renting a car in La Coruña for a 3-day visit because it was more expensive (189 euros) than taking taxis!
Sara Jones is right, too: that same sister-in-law bought a standard model Volkwagen Golf in September 2009, no special paint or anything, and is STILL WAITING for delivery. The dealership says there’s been a slowdown in the manufacturing process. So which brand of cars is the one of all those 1000s of cars rusting on the lots? It certainly isn’t VW!

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Enrico | 26 May, 2010 at 7:49 pm

A car is essential for a lot of areas in Spain and if you arrive at the airport and the booking fails to materialise, that is just plain wrong! Surely the whole Spanish tourism industry is going to take a hammering not just now, but for years to come because of this as I certainly will be thinking very carefully about returning there in the future.

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