Tourism Wind in Daily Car Rental!

Inan Ekici, Chairman of the Board of the All Car Rental Organizations Association (TOKKDER), announced that the expected activity in tourism this year could be reflected in a growth of nearly 30 percent in the daily car rental area. Ekici said that daily car rental companies have started to prepare for the expected recovery in tourism with their vehicle purchases for this year, adding, "There may be a growth of 25-30 percent in daily car rentals this year. With this growth, I think the business volume of the industry will approach the 2019 level.” Touching on the change in commercial vehicle leasing, Ekici underlined that the share of commercial vehicles in long-term leasing is expected to increase to 25 percent in three or four years.

Inan Ekici, Chairman of the Board of Directors of the Association of All Car Rental Organizations (TOKKDER), the umbrella organization of the car rental industry, made striking statements about this year while evaluating the last year in particular. Pointing out that the expected mobility in tourism this year will be reflected in the daily car rental area, Ekici said that in the light of these developments, a growth of 25-30 percent can be experienced in daily car rentals. Ekici also underlined that with this growth, the business volume of the sector may approach the 2019 level. Drawing attention to the developments in commercial vehicle leasing, Ekici stated that the share of commercial vehicles in long-term leasing may increase to 25 percent in three or four years.

The number of foreign tourists may approach the figure in 2019!

Saying that daily car rental companies have started to prepare for the expected recovery in tourism with their vehicle purchases for this year, İnan Ekici said that the performance of both tourism and daily car rental sector in 2022 will result in the coronavirus turning into a seasonal epidemic and a potential risk as in Ukraine, which is located in the nearby geography. He pointed out that the risk of war would end in a short time and the process would not continue in a negative sense. Ekici, if these issues are clarified before the start of the tourism season; He emphasized that the number of foreign tourists, which was 45 percent below the pre-pandemic level last year, could catch up with 50 with an increase of more than 2019 percent this year.

“The tourism side can grow by more than 50 percent”

Ekici said, "The tourism side can grow by more than 50 percent with the most conservative estimate," adding, "The daily rental car park was about 35 percent below the pre-pandemic level last year. I expect 25-30% growth this year. With this growth, I think that the business volume of the sector may approach the 2019 level. I am of the opinion that an improvement to be achieved this year due to foreign tourists will continue as a trend.” Pointing out that the car park in the daily rental sector, which shrank after the shrinking tourism demand due to the pandemic, was at the level of approximately 35 thousand units last year, Ekici said that this year the figure could reach the level of 40-45 thousand. Reminding that last year, the demand side of tourism gained visibility with the reorganization of the coronavirus restrictions in June, after the season started, and emphasized that the outlook will be clearer this year if the epidemic and geopolitical risks do not increase.

Rapid increase trend in commercial vehicle rental!

Touching on the subject of commercial vehicle rental, İnan Ekici emphasized that the share of commercial vehicles in the long-term rental vehicle park is expected to increase after the changes in the legislation. Emphasizing that the share of commercial vehicles in long-term leasing is expected to rise to 25 percent in three or four years, Ekici said, “The obstacles have largely been lifted. Even if it is a single vehicle, it can now be rented. We entered a rapid increase trend," he said. Ekici added that the share of light commercial vehicles in the car park of the long-term rental sector is estimated to have exceeded 5 percent last year.

3 percent growth expectation in operational car rental!

Ekici stated that the vehicle park of the operational leasing sector is estimated to have narrowed by about 10 percent last year to 238 thousand, and this year, it is expected that the vehicle park of the sector will reach 245 thousand with a limited growth due to the supply problem, the decrease in the availability of economic vehicles, increasing vehicle and funding costs. told. Reminding that the vehicle park of the operational leasing sector has been shrinking for several years, Ekici said, “It could be higher if there were no availability problems. But there is an interest and exchange rate element, the stable exchange rate must continue. I keep my optimistic expectation. 2022 is a year when contraction stops. I expect limited growth. In this context, a 3 percent growth can be experienced in the field of operational car rentals.

After the postponed request, there will be a fast return process!

Indicating that efficient use of limited resources has become extremely important, İnan Ekici said that operational leasing has become the most suitable alternative for businesses to meet their vehicle needs. Ekici said, "I believe that there will be an increase in demand, which has been delayed since 2018, with the end of the effect of the pandemic and the disappearance of the epidemic threat, and we will experience a rapid return process." Saying that the car rental world has adapted to the change brought about by the pandemic and attaches more importance to the use of technology and digitalization, Ekici said, “The mainstream of 'use instead of ownership', which started before the pandemic, will increase even more in the coming period. Individuals and institutions will turn to models that allow them to use as much as they need, and therefore to leasing.”

Problems of the industry

Touching on the problems of the sector, İnan Ekici stated that many customers want to extend the rental period of their existing vehicles, which they have acquired through operational leasing, due to the problem in vehicle supply, but that it is not possible to rent a car longer than 48 months due to the legislation, and that TOKKDER's attempts are still continuing with the relevant government institutions to overcome this situation. transferred.

The expectation of the monthly rent expense ceiling amount in the passenger car!

Ekici also talked about the monthly rental expense ceiling for passenger cars and said, “Due to the increased vehicle purchase, maintenance/repair and operation costs in the current period, 2022 thousand TL, the monthly rental expense ceiling for passenger cars, which was determined for 8, was insufficient. As the industry, our expectation is that the amount to be determined as the monthly rental expense ceiling for a passenger car will cover at least the monthly rental amount of a D segment entry level car, which corresponds to approximately 15-16 thousand TL. Under current conditions, the monthly rental expense ceiling for a passenger car of 8 thousand TL may be insufficient even for C segment vehicles.