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Loop Head Tourism Chair Accuses Car Rental Companies Of Price Gouging

The Chair of Loop Head Tourism has accused car rental companies of price gouging.

Luke Aston says he’s experienced price hikes first hand, while he’s reports of people travelling here being quoted as much as two thousand euro to hire a car for a week.

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The Car Rental Council says rental companies being forced to sell off their stock of vehicles during the pandemic is to blame, with stock levels at the beginning of the year at about 50% of what they would have been in pre-pandemic years.

 

Luke says while stock shortages are understandable, he fears the price rises will impact the tourist trade.

Listen to the full interview here: 

Statement from the Car Rental Council

Rental companies were forced to sell off their stock of vehicles during the pandemic. Going into 2022, stock levels were about 50% of what they would have been in pre-pandemic years. In rebuilding stock levels, car rental companies face a lack of supply of new cars from manufacturers in the wake of the pandemic. Global car production slowed substantially during the pandemic and there is now a huge backlog of orders for new vehicles. The problem is compounded by component supply issues for the production of new cars. High demand and supply shortages have resulted in more expensive and fewer new cars available to the Irish market.

While current forecasts for overseas visitor numbers suggest that overall car rental demands can be met, the factors outlined above are likely to result in some shortage of rental cars in peak demand periods. It will take time for car rental companies to build car stocks back up to pre-pandemic levels. In the meantime, tourists should book cars early to secure the best rates. I understand similar problems exist in other European tourism destinations.

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