Surpassed our anticipations remarkably
Iceland's car rental market is facing an uncertain autumn season, with booking patterns fluctuating and unpredictable, according to industry experts.
Magnús Sverrir Thorsteinsson, CEO of Blue Car Rental, reported that this summer has exceeded expectations for his company, with a "quite solid" increase in bookings compared to last year. The summer months, particularly June, July, and August, have seen an increase in rentals, making it a successful season for Blue Car Rental.
However, the outlook for the autumn season is less promising, with bookings well below last year's levels, according to Steingrímur Birgisson, CEO of Höldur-Bílaleiga Akureyrar. Birgisson attributes this to tourists making travel decisions with shorter notice than before, adding to the market's uncertainty.
The increased uncertainty is driven by several factors. People are making travel decisions later, resulting in fluctuating booking patterns. Geopolitical issues and international trade concerns, including ongoing wars and statements by U.S. President Donald Trump about trade policies, contribute to hesitation among tourists. Discussions in Iceland about a possible kilometer-based road tax may be discouraging early bookings, adding local policy uncertainty.
The average rental period for Blue Car Rental has extended by several percent this summer, a trend not seen since before the COVID-19 pandemic. Despite the summer's success, the outlook for autumn remains unclear, with no significant growth expected compared to last year.
Birgisson explains that there are many things potentially discouraging tourists from making early decisions, contributing to the uncertainty. The CEO of Höldur-Bílaleiga Akureyrar expects that the growth in autumn will be roughly on par with the same period last year.
This market environment leads tourists to delay commitments, creating uncertainty for car rental companies planning for the autumn season in Iceland. The industry is closely monitoring the situation, hoping for a strong recovery in bookings as the autumn season progresses.
[1] Based on interviews with Magnús Sverrir Thorsteinsson, CEO of Blue Car Rental, and Steingrímur Birgisson, CEO of Höldur-Bílaleiga Akureyrar.
The uncertain autumn season in Iceland's car rental market, as reported by industry experts, is causing concern for business owners such as Magnús Sverrir Thorsteinsson, CEO of Blue Car Rental, who experienced increased bookings this summer but anticipates a decrease for the autumn season. Steingrímur Birgisson, CEO of Höldur-Bílaleiga Akureyrar, also expects a stagnant growth in autumn bookings due to factors like tourist hesitation, late travel decisions, and policy uncertainties.
