Car Rental (Destination) in Romania

2021 IMPACT

Slow recovery and polarisation in the competitive landscape

Although showing the first signs of recovery in car rental, a significant return to pre-pandemic value sales is far off after the disastrous 2020, due to the numbers of tourists and business trips still being way below 2019 levels. Leisure car rental has been hit hard but is set to recover faster than business car rental, having averaged double-digit current value growth rates over the review period up to 2020.

Temporary peak in prices seen in an unstable environment

With fleets optimised to reduce costs and to navigate the uncertainty triggered by the outbreak of the health crisis, in the peak season of 2021 the category has seen an increase in demand and a reduced supply. This has led to temporary increases in price, which have sometimes even discouraged the previous year’s customers.

RECOVERY AND OPPORTUNITIES

Full recovery likely to be delayed by slow return of air arrivals and business trips

With car rental presence being strong at airports, sales recovery is dependent on air arrivals growing back to pre-pandemic levels as swiftly as possible. While flows generated by Romanians should rebound faster, the real value is in foreign tourists and these customers are expected to return at a slower rate, prioritising other destinations after the break in international travel caused by the pandemic.

The shift to online sales is accelerated by the pandemic

While online was just exceeding offline car rental sales in 2019, by the end of the forecast period this shift will accelerate, with operators in the category understanding the need to digitalise their business as highlighted by the pandemic and become more prepared for possible future disruptions. The online sales channel includes direct sales through operators’ own channels (which are expected to account for most of the projected growth), as well as sales through partnerships with intermediaries.