Car hire firms under attack for festive price hike
Monday December 10 2007
Car hire companies have been condemned after a survey found they are set to double and even treble the rates they charge for the Christmas period.
The price hikes will hit returning emigrants and visitors to Ireland hard, the new survey from the Consumers' Association shows.
Budget Car Rental emerged as the worst offender. Its rates for a compact, five-door car jumped from €209 for the first two weeks of December to €705 between December 22 and January 5.
This works out at a price hike of €496 or 237pc for hiring a car over the Christmas break.
The survey also showed that Argus charges €590 for hiring a car over Christmas compared to €218 at the start of December, an increase of €372. In contrast, there is no increase in the charge for hiring a car in Paris from Budget over Christmas.
Hertz and Avis do not impose Christmas increases in Paris either, while Argus charges 8pc more than in early December.
In Belfast, car hire charges rise by between 22pc and 53pc over the festive season, according to the survey in the Consumers' Association magazine 'Consumer Choice'.
The magazine commented: "What is it about car hire firms in the Republic that they feel they can double or treble prices in the space of a week?
"We appreciate that demand for hire cars is high at this time of year, but even the conventional laws of supply and demand are being ruthlessly stretched here."
A spokesman for Budget Car Rental insisted yesterday that it seeks to be cheapest company in the market when it has cars available.
Car hire in Ireland was cheaper than in Belfast or Paris outside of the Christmas period, he added.
Asked why their charges were so much higher over the Christmas period, he explained: "Because there is no business before and no business after Christmas. We are in the business to make a profit."
The survey also looked at prices in October of hiring a Ford Fiesta five-door from Dublin Airport. The cheapest quote was €120 from Irish Car Rentals, with Hertz the most expensive at €189.
When it came to a seven-seater people carrier, prices ranged from €313 (Irish Car Rentals) to €560 (Enterprise) for hire during the week.
Consumers were advised to ensure they check out a number of providers in the market before making a decision on hiring a car.
- Charlie Weston Personal Finance Editor
