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Car rentals in Iceland are expanding

Hertz car rental bought 500 new cars for the summer and increased their fleet size by roughly 15%. The car rental will have 1400 cars this summer. Sigfus Sigfusson, CEO of Hertz, says that the demand has increased by roughly that amount compared to last year.

Sigfus said that the weather does not effect the operations and that the fall (autumn) rentals will soon begin, but then they will sell around 300 cars.

The increase in demand is mostly due do to more traffic during the winter. Even though the weather has been relatively bad this year the demand does not decrease, people have decided to come to Iceland some time in advance.

"The winter was really good, which is very important to us" said Sigfus. But most of the increase in visitors has been taking place outside the high season. When Sigfus was asked if tourists are renting cheaper cars he that is not the case, "This is quite similar to last year", and he added that the small to medium sized cars are most popular.

High season is only 30 days

Sigfus says that the high season is coming to an end now, but from mid July to mid August the demand is highest. He says that the car fleet has to be a bit bigger during these 30 days than is necesarry for the other 11 months. Average utilization is around 20% lower in June than over the high season, even though June is considered a summer month.

 

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Last modified on Friday, 16 August 2013 12:45

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