May
07
2014

Economic Variability

The shortage of rental cars in Spain increased the prices of car hire in Granada and in the worst case is leading to a lack of available vehicles in the province. Other tourist destinations like Malaga, Alicante and Majorca have also been severely affected by the significant reduction in the size of the rental fleets in order to reduce costs and cope with the crisis. Due to the recession, car rental companies have reduced the number of vehicles and this has led to higher prices for customers. Despite the fact that foreign tourist arrivals fell by up to 10 percent this year due largely to the economic recession during the Easter holidays many visitors were unable to book a rental car and the same problem is being repeated in the months of July and August. The number of British tourists, representing a quarter of all visitors to Spain, fell more than 16 percent in the first half of the year, while the number of German tourists dropped 11 percent. The shortage of car hire in Granada contrasts with figures of employment in the hospitality industry and the number of foreign tourists arriving at major airports in Spain. The lack of availability in the car rental sector is due to a number of factors, all of which related to the current recession.

Many car rental companies have been affected by lack of funding from banks, which has prevented the purchase of new cars. Other companies have been selling like-new cars to repay loans, but can not replace them. “Many of our clients have lost their rental car in Granada this year,” says a spokesman for a group of car hire companies local to have agreed to fight together against recession. “In the past, customers used to book your car with a few days ahead, or even travel without a reservation and arranged a rental car on the spot upon arrival. Things have changed dramatically this year, and in case of finding a car the price will at least double what it paid last year. “Larger companies may have availability, but at a price. Local businesses tend to have better prices, but if you leave booking until the last minute will not have many available. “The only way for companies to hire local Granada to ensure availability during periods of maximum occupation is to work together. is a business initiative that we have to learn to see other companies as a possible solution for our customers and not as a competitor.

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