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New Zealand Rental Vehicle Market Insights Report

September 2019

11th Edition | Issued 1st October 2019

SECTION 1
SEPTEMBER 2019 ANALYSIS

Year on Year (YoY^) Average Rate Change

  • For all three locations, across all sales channels, the average rate was flat YoY
  • The average rate for Auckland Airport (AKL) +3% up on prior year
  • Christchurch Airport (CHC) average rate is flat YoY
  • Queenstown Airport (ZQN) is continuing to hold strong average rates
Sep19- fig01

Fig. 1

Channel, Duration and Vehicle Category

Refer to sales channels (Fig.2), duration (Fig.3) and vehicle category (Fig.4) graphs for the average rates during the month. As was the trend in prior months, the average rates for the shorter 3-day duration remains strong.

Sep19- fig2

Fig. 2

Sep19- fig3

Fig. 3

Sep19- fig4

Fig. 4

Jul19-fig2a

Auckland Airport YoY Summary

Overall Auckland Airport had a YoY average rate increase of +3%.

Rentalcars.com sales channel showed an average rate increase of +9%, while Airport Rentals and the direct channels showed decreases of -4% and -1% respectively (Fig. 5).

The average rate for 3-day duration increased +16%, while the average rate for longer 7-day was flat, and 14-day duration -16% (Fig. 6).

The average rate for SUV’s in Auckland was flat YoY, with all other categories showing average rates of between +5% and +16% (Fig. 7).

Sep19- fig5

Fig. 5

Sep19- fig6

Fig. 6

Sep19- fig7

Fig. 7

Jul19-fig5a

Christchurch Airport YoY Summary

Overall Christchurch Airport had a flat YoY average rate.

Rentalcars.com sales channel showed an average rate increase of +4%, while Airport Rentals and the direct channels showed decreases of -9% and -2% respectively (Fig. 8).

The average rate for 3-day durations increased +6%, while the average rate for longer 7-day and 14-day durations were lower by -3% and -11% respectively (Fig. 9).

The average rate for SUV’s was down -1%, with all other categories increasing between +2% and +9% (Fig. 10).

Sep19- fig8

Fig. 8

Sep19- fig9

Fig. 9

Sep19- fig10

Fig. 10

Jul19-fig8a

Queenstown Airport YoY Summary

Overall Queenstown Airport had a YoY average rate increase of +3%.

The rentalcars.com sales channel showed an average rate increase of +11%, while Airport Rentals and the direct channels showed decreases of between -6% and 0% respectively (Fig. 11).

The average rate for a 3-day duration increased +11%, while the average rate for longer 7-day and 14-day +2% and -6% respectively (Fig. 12).

The average rate for SUV’s was up +1%, with all other categories increasing between +6% and +16% (Fig. 13).

Sep19- fig11

Fig. 11

Sep19- fig12

Fig. 12

Sep19- fig13

Fig. 13

Jul19-fig11a

SECTION 2
YEAR TO DATE (YTD) ANALYSIS
FROM JUNE TO SEPTEMBER 2019

Year to Date (YTD) Analysis: June to September 2019

  • During July and August the average rates peaked (Fig.14)
  • Averages rates remained strong during the winter season between June and September 2019
  • The average rate for Auckland Airport picked up from September 2019, while the average rates for Christchurch and Queenstown Airports started to decline, as is the normal seasonal trends
Sep19- fig14

Fig. 14

Sep19- fig15

Fig. 15

Sep19- fig16

Fig. 16

Sep19- fig17

Fig. 17

SECTION 3
FORWARD MARKET ANALYSIS
FROM OCTOBER 2019 TO JANUARY 2020

Forward Market Analysis: October 2019 to January 2020

Overall average rates for the coming months are soft (Fig.18). The early average rate build from mid-December 2019 is encouraging, however, rates from October to mid-December 2019 are lower than prior year (Fig.19 to Fig.21).

Market Insider Tip:

The back end of the Winter season (late September to October 2019) was strong compared to prior year.

There is a period of potential YoY weakness from October to mid-December 2019, and rates during this period will require active management and careful channel distribution.

However, keep one eye on the Auckland build profile to ensure fleet is on hand in Auckland to service upcoming demand.

Sep19- fig18

Fig. 18

Sep19- fig19

Fig. 19

Sep19- fig20

Fig. 20

Sep19- fig21

Fig. 21

October School Holidays 2019

  • For October School Holidays 2019, for all three locations, across all sales channels, there is currently an overall YoY average rate decrease of -5%  (Fig. 22)
  • The average rate across Airport Rentals and Direct Sales channels is weaker (Fig. 23)
    • Rentalcars.com +13%
    • Airportrentals.com -10%
    • Direct -24%
  • The rate remains strong for the 3-day duration (Fig. 24), however, the weaker trend extends to all vehicle categories except the Economy (Fig. 25)
sept 19 - fig 19-1-1

Fig. 22

sept 19 fig 20-1

Fig. 23

sept 19 fig 21-2

Fig. 24

sept 19 fig 22-1

Fig. 25

Methodology & Disclaimer

Methodology:

  • The data was derived from circa. four (4) million datapoints, and this size dataset was deemed large enough to draw reasonable conclusions
  • Inconsistent outlying datapoints were removed
  • The data collected is from 13 individual rental vehicle operators (a mix of independent, franchise, small, medium and large operators)
  • The data collected from the 13 rental vehicle operators has been anonymised and aggregated, then displayed to provide a general reflection of the overall market
  • The pickup days included in the data are Tuesdays and Fridays

Disclaimer:

This report is intended as a guide only.

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