Published on Thursday, June 30, 2011
The cost of renting a car has fallen for the first time in four years, according to research by Holiday Autos.
The car hire broker surveyed 180 destinations for its Car Hire Price Index and found that the average cost of renting a compact car for a week fell 6% in 2011 to Â£251.
Prices actually rose between 2008 and 2010, thanks to the recession and recent natural disasters.
The research also flagged up destinations where the cost of a weekâ€™s car hire had fallen substantially in 2011, with Ireland the cheapest spot at just Â£125 â€“ a drop of 51% compared to 2010.
The next cheapest was Gibraltar, down 35% to Â£195, then Gerona, down 29% to Â£228, Valencia, down 28% to Â£217 and Greece down 24% to Â£261.
However, there were still some destinations where holidaymakers pay top dollar. The most expensive weekâ€™s hire of a compact car was Switzerland at Â£317 closely followed by France (Â£304), Ibiza (Â£284), Portugal (Â£280) and Sicily (Â£276).
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.