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Mallorca car-hire price increases "are here to stay"

"Limiting hire cars on the islands makes no sense"

Some 75,000 cars expected this year. | Archive

| Palma |

Car-hire firms in Mallorca and the Balearics have been ordering vehicles from mainland manufacturers earlier than has normally been the case so as to ensure that they have the largest number available for the coming season.

There are two employers associations on the islands. The president of one of them, Baleval, is Othman Ktiri of the OK Group. He says that orders were being put in over the final quarter of 2022 and suggests that, unlike some times in the past, the purchase of vehicles will be easier for 2023.

He anticipates fewer problems than in previous years, especially in 2022 when there were issues with manufacturing. He expects that there will be at least as many cars on the islands as last year, and he has words for proposals to limit the numbers: "Limiting hire cars on the islands makes no sense. All it does is push up prices and affect people's mobility."

Ramón Reus, the president of the other association, Aevab, agrees with Ktiri that business forecasts for this year are good, but he adds that there are still "many uncertainties and that we must be aware of how tourist markets may evolve".

Reus is of the view that last year's price increases are here to stay. It's supply and demand, as he anticipates there being up to 75,000 vehicles in all and that there will never be a return to the 120,000 or so that represented the pre-pandemic maximum. A total of 75,000, he believes, is in line with sustainability policies.

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