RAC/Short-Term Rental Market Gaining Strength in 2021

Eco-powered cars are entering the rent-a-car (RAC)/Short Term Rental (STR) market at a faster pace, while the overall market is strengthening post-pandemic in Spain, Italy and Germany, according new report by Dataforce, a Germany-based provider of fleet market data and automotive intelligence solutions in Europe.

Hybrid, PHEV and electric vehicles recorded more new car registrations in 2021 YTD than in both the full years of 2019 and 2020 combined, reflecting their growing use and popularity, the report stated.

The report found the Spain experienced the strongest recovery, up 98.8% 2021 YTD compared to 2020, equating to more than 55,000 new car registrations. Italy posted a smaller increase—21.9%—indicating the recovery continues to build momentum. Germany’s market recorded a 20.2% YTD.

The upswing in both Spain and Italy markets in the first six months of the year reflect the countries’ greater market seasonality, due in part to the uptick in tourists in and around the summer months.

In context, Germany’s smaller gains indicate that economic drivers other than seasonal tourism influence the country’s RAC/STR market. Germany records the largest number of new car registrations in Europe, and the country experienced the smallest overall volume loss when comparing 2021 numbers versus 2019 YTD.