Hire car prices plunge across 11 holiday hotspots in huge boost for Brits ahead of summer

Rental car prices have fallen significantly in all but two holiday destinations.

The cost of securing yourself a rental vehicle during a trip away is up to 47% cheaper this year compared to 2023.

Analysis of data supplied by car hire broker Zest Rental, for more than 3,000 rentals at airports in 13 popular holiday destinations including Orlando, Alicante, Lanazrote and Corfu for the forthcoming Easter and summer holidays shows a positive trend. The data cover all car types, for week-long rentals.

Eleven of the 13 destinations Which? checked have seen average prices drop over the Easter holidays compared with the same period last year, while nine of the destinations have seen prices fall over the summer break.

Mother and son stand by a car

Over Easter, Funchal in Madeira has seen the biggest price drop of £146, 35% less than last year, when travellers spent £412 on average. A week’s rental now costs £266. Funchal was also the destination with the largest fall in flight prices, the Mirror reported this week.

Palma, Mallorca is close behind with the average rental costing £92 less than the previous Easter, a 29% Travellers previously paid £319 per week, compared to an average of £227 this year.

Corfu currently has the cheapest average rental costs over Easter, with a week’s rental coming in at just £84 on average, with prices dropping 47% on last year, when the average price paid was £158.

Rhodes and Nice were the only destinations to buck the overall trend over the Easter break, with prices up 36% on average in Rhodes, and a whopping 97% in Nice. It’s possible that these areas have a less competitive rental market, leading to higher prices.

The price drops were less notable for the summer months, but still very much there in a number of destinations. Rhodes Airport has seen the biggest summer price decrease, with the average rental costing £160 less than last year, down to £259 from £419 a week (a drop of 38%).

Close behind with a price drop of £146 is Funchal, Madeira Airport, where a week’s rental now costs £350 on average, compared with £496 last summer (a fall of 29%).

In the face of widespread vehicle shortages after the pandemic, the cost of car hire rose significantly last year. Manufacturing issues meant supply of new vehicles stalled, and rental firms struggled to restock at a pace to keep up with consumer demand.

Now that many of those supply chain issues have eased, companies have finally been able to replenish their stocks. At the same time, the brakes have been put on the used car market, meaning car hire companies are more likely to hold onto older stock for longer, rather than opting to resell. With an oversupply of vehicles comes cheaper prices for holidaymakers.

While it’s positive to see prices falling, rental costs are still higher than travellers were used to pre-pandemic, however. Easter prices are up by 51% on average compared with 2019, and summer prices are up by 53%. The rate of inflation in the UK has been slightly more than 30% since then.

Easter prices

Airport location

2023 weekly rate

2024 weekly rate

Difference

% difference

Funchal, Madeira

£412

£266

-£146

-35%

Palma de Mallorca

£319

£227

-£92

-29%

Orlando, USA

£455

£373

-£82

-18%

Lanzarote

£235

£157

-£78

-33%

Corfu

£158

£84

-£74

-47%

Faro, Portugal

£207

£148

-£59

-29%

Larnaca, Cyprus

£214

£168

-£46

-21%

Pisa, Italy

£255

£210

-£45

-18%

Alicante, Spain

£192

£148

-£44

-23%

Malta

£208

£187

-£21

-10%

Malaga, Spain

£185

£170

-£15

-8%

Rhodes

£77

£105

£28

36%

Nice, France

£245

£482

£237

97%

Summer prices

Airport location

2023 weekly rate

2024 weekly rate

Difference

% difference

Rhodes

£419

£259

-£160

-38%

Funchal, Madeira

£496

£350

-£146

-29%

Alicante, Spain

£339

£223

-£116

-34%

Corfu

£403

£296

-£107

-27%

Palma de Mallorca

£376

£270

-£106

-28%

Faro, Portugal

£329

£232

-£97

-29%

Lanzarote

£262

£190

-£72

-27%

Pisa, Italy

£446

£380

-£66

-15%

Orlando, USA

£480

£443

-£37

-8%

Malaga, Spain

£276

£286

£10

4%

Malta

£245

£258

£13

5%

Nice, France

£513

£560

£47

9%

Larnaca, Cyprus

£190

£252

£62

33%