Vehicle rentals surge over Hari Raya period as car and transport costs rise

Key Concepts:

• Increased demand for vehicle rentals (buses, SUVs, cars) during Hari Raya.
• Impact of high COE (Certificate of Entitlement) prices and transportation costs on rental demand.
• Preference for group travel and convenience driving bus rentals.
• Ad-hoc rental as an alternative to car ownership due to high costs.

Increased Demand for Vehicle Rentals

• Bus rental firms have experienced a 30% increase in business this Hari Raya compared to the previous year. This is a significant indicator of the shift in transportation preferences during the festive season.
• Demand is particularly high for medium and large buses, with rental firms reporting their entire fleet being fully booked over the long weekend.
• Car rental firms have also seen increased demand, requiring them to activate their standby vehicles to meet the needs of customers.

Impact of High COE and Transportation Costs

• Rising COE prices are a major factor driving the increased demand for rental vehicles. As COE prices increase, owning a car becomes more expensive, making rentals a more attractive option.
• High costs for fuel, parking, and maintenance are also contributing to the shift away from car ownership and towards ad-hoc rentals.
• The cost of public transportation, including ride-hailing services like Grab and taxis, is also higher during public holidays, making rentals a more cost-effective option for families visiting multiple locations.

Preference for Group Travel and Convenience

• Families are increasingly renting SUVs and small buses to travel together during Hari Raya. This allows them to visit multiple destinations without the hassle of coordinating multiple vehicles.
• Traveling together in a bus ensures that everyone arrives at the same time, eliminating the need to coordinate parking and arrival times.
• The convenience of having a single vehicle for the entire family is a major factor driving the demand for bus rentals. As one family stated, "just take a bus is convenient."

Ad-hoc Rental as an Alternative to Car Ownership

• Families are increasingly viewing rentals as a viable alternative to car ownership due to the high costs associated with owning a vehicle.
• Instead of owning a car, they are opting to rent vehicles on an ad-hoc basis for specific occasions like Hari Raya.
• This allows them to avoid the ongoing expenses of car ownership, such as insurance, maintenance, and depreciation.

Booking Trends

• Car rental firms are seeing bookings come in earlier than usual, with inquiries starting three to four months in advance.
• This indicates a higher level of urgency among customers to secure rental vehicles for the holiday period.
• The increased demand and early booking trends suggest that the shift towards rentals is likely to continue in the future.

Most Popular Rental Vehicles

• Larger SUVs are the most popular rental vehicles during the Hari Raya holiday.
• Regular sedans are also in demand, but SUVs are preferred due to their larger size and ability to accommodate more passengers and luggage.

Conclusion

The increased demand for vehicle rentals during Hari Raya is driven by a combination of factors, including high COE prices, rising transportation costs, and a preference for group travel and convenience. Families are increasingly viewing rentals as a cost-effective and convenient alternative to car ownership, leading to a surge in demand for buses, SUVs, and cars during the festive season. The trend of early bookings and the overall increase in rental business suggest that this shift in transportation preferences is likely to continue in the future.