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Tourism "blesses" the car rental business

2024-05-19 08:24:00, Ekonomi CNA

Tourism has become the sector that is feeding year after year the growth of several supporting industries, part of which is the rental car market.

To understand this impact, it is enough to talk to the main operators of the market or even click on social networks such as Facebook or Instagram, which are "flooded", especially this year, with business or individual pages that are oriented towards car rental.

Sources from the market report that there is a mass tendency of small agencies that own a limited number of tools, to rent them out.

Prices of course depend on the type of vehicle required to be used and the duration. For example today on the Internet, on a sponsored page (X) the opportunity to rent a car at a price of 25 euros/day appears, where if the rental duration is 5 days you get one free, if you rent 10 days, you get two and if you get it for 20 days, you get 5 days free.

Another similar option also sponsored shows that you can secure an SUV for 189 euros for 7 days.

Such offers are endless, where in some cases there are also individuals who have invested in a small amount of funds to take advantage of the demand that tourists have for rental cars and seeing this as a form of investment.

However, the big companies confirm that in this momentum brought by the tourist flow, there is also an increase in informality, which regardless of its size, makes the competition between the parties unfair. Demand 30% higher, but the devaluation of the Euro has a negative impact

The demand for rental cars has marked a significant increase this year, going almost parallel to the increase in the movement of foreigners in our country.

Companies that provide car rental service estimate that at least in these 4-5 months of 2024, the growth is at least 30%.

"The first months of 2024 had a positive trend, which is expected to increase with the arrival of the summer season. We noted a significant increase in demand, estimated at around 30% compared to 2023", affirms Fabio Penzavecchia, administrator of "Sicily by Car".

But while demand is increasing compared to a year ago and prices have not undergone significant changes, the devaluation of the Euro has "erased" the real effect of the growth that the market is experiencing.

Eliana Bakiri, administrator of "Top Tour", brings to attention that in this first part of the year, the Euro has marked very low levels against the Lek, at least if we compare it with the same period a year ago.

"The year, in general, has been good, we are talking here about the first 4-5 months. The market in general has an increase in turnover, so we have more demand and reservations, but this has not brought any effect on us, as the Euro has depreciated compared to a year ago.

In the same period of 2023, the exchange rate was better, almost 120, while today 1 euro is exchanged for 100 lek. We are registered with the broker and we sell in euros, and this has affected us a lot", Mrs. Bakiri underlines. Companies are investing in expansion, upgrading fleets and platforms

In Albania, not only the tourist flow has changed, which has increased from one year to the next, but also the categories and origin of tourists.

This seems to have led to the remodeling of the fleets by the companies, adapting it to these trends, where the focus has been not only expansion, but also improvement in quality.

"In Albania, the region is Mediterranean and we have found ourselves in the category of economic vehicles, where you can visit every corner of the country even with a simple vehicle.

The demand remains for all categories, but we have chosen to operate at a low cost, since the luxury segment is something else and requires a different marketing approach and has costs of a different nature", Mrs. Bakiri confirms that the number of vehicles, mostly new ones, has increased this year as well from the company.

Others, in addition to the fleet, have decided to invest in other aspects related to the forms of sales, communication or platforms to make the booking steps as simple as possible.

"Even this year, thanks to careful forecasts and the proportional adjustment of the fleet with new vehicles, the company is ready to meet the expected demand. We have a new website which makes the stages of booking vehicles even easier", says Mr. Penzavecchia.

No change to electric cars, lack of infrastructure

Just like last year, this year too, the expansion of electric car fleets has not progressed to car rental companies.

They claim that their investment plans foresee this element as well, once the necessary infrastructure related to charging stations is in place.

"For our company, care for the environment is of primary importance. Already in Italy, we are the pioneer of 'Green' car rental.

As far as Albania is concerned, we are ready to offer customers a green fleet, which will become part of the market, as soon as the number of necessary infrastructures is deemed sufficient to guarantee the customer vehicle charging anywhere in the Albanian territory ", says Mr. Penzavecchia.

Mrs. also underlines the same thing. Bakiri who says that with the current situation, electric cars are only suitable for short routes.

"Electric vehicles are an option, but in Albania this is limited by the lack of charging stations.

Someone who can rent a car can go as far as Vlora in such a vehicle, but if he wants to explore beyond it, because he sees that there is still more to see, he cannot get an electric like a rental car.

Transfer cars, i.e. those that make the Airport-Tirana route or go to nearby destinations, can be electric, as they have a kind of affordable independence.

And the ones that are taken for longer exploration or longer routes are generally the traditional cars with fuel", she emphasizes.

The Energy Regulatory Authority (ERE), in its 2023 annual report, emphasized that investments in this direction are moving slowly.

"During the year 2023, according to the data, 26 new points for electric car charging units have been installed, namely in Durrës 2, with an installed power of 250 kW, while in Tirana there are a total of 26 contracts, with an installed power of 2565 kW .

Although the total number of electric vehicles has had a steady increase for more than half a decade, many companies and individual consumers are still not aware of how electric cars compare with traditional fuel-powered cars", ERE underlined./ Monitor magazine.