Tourism rebound, smaller fleets drive demand for car rentals

Agencies sell thousands of cars to compensate for pandemic losses

Cars for rental are displayed at a car rental agency. Now that the Kingdom has entered the second phase of its gradual reopening plan and tourism is slowly beginning to rebound, demand for rental cars
Cars for rental are displayed at a car rental agency. Now that the Kingdom has entered the second phase of its gradual reopening plan and tourism is slowly beginning to rebound, demand for rental cars is rising, but there are fewer cars available for tourists. (Photo: Jordan News)
AMMAN — During the pandemic, car rental agencies have opted for a difficult choice to make up for losses: they sold part of their fleets.اضافة اعلان

However, now that the Kingdom has entered the second phase of its gradual reopening plan and tourism is slowly beginning to rebound, demand is rising, and there are fewer cars available for tourists hoping to visit Jordan’s famous destinations.

"Because of the pandemic we had to sell almost 5,000 cars because we had some debts and we had no solution except selling some of the cars,” said Ahmad Emad, the owner of a car rental agency, in an interview with Jordan News.

"Nowadays, we are renting cars, especially to foreigners and expatriates,” Emad added. “Our situation is better than before, but the problem is that we do not have enough cars to meet everyone's needs."

"No one supported us (during the pandemic), even banks, they have not given us the needed facilities. I do not know what upcoming days would bring to us, all I know is that everyone is terrified of the uncertain future."

According to Abu Moaad Khaldoun, a manager at Monte Carlo Rentals, the company’s SUV fleet has all been rented out or booked, mostly by customers from Arab Gulf countries, but also by other foreigners.

"We have a lot of reservations from foreigners and Jordanians who are coming from the Gulf states like Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait. This year (demand) is higher than other years, because of the COVID-19 situation. A lot of them are preferring to come by plane and rent their cars here in Jordan instead of bringing their own."

According to Khaldoun, renting out cars instead of bringing them in from Gulf states is "the cheaper option," and it is more convenient for tourists.

Khaldoun also believes that travel "will increase between the countries during and after Eid Al-Adha," and expects car rentals, notably in the capital, to surge when foreigners and Jordanians working abroad come over.

"Here in Jordan, it’s going better and better,” he said. “All the sectors are open right now, and the main sector is the tourism sector. So it's good now that it is increasing, but we prefer to wait until after Eid Al-Adha to see.”

Meanwhile, Reliable Car Rental, and agency located on Airport Road in Amman, has also seen a strong increase in their car rentals compared to the previous stagnant year, reporting that their business is more or less back to pre-pandemic levels.

"Nothing has changed for us at all. Every year, we see the same spike in business, except during COVID-19. For the last year and a half, we haven't had that, we haven't had tourists or business. But this is going back to normal now," said an employee from the agency in an interview with Jordan News.

The head of the union for car rental agency owners, Saleh Jallouq, told Jordan News that "I cannot deny that the number of SUV cars 9in the rental market) is smaller than that of last year, but at the same time, it meets the needs of the renters."
Jallouq noted that his agency, which had a fleet of 13,000 cars before the pandemic, has had to sell more than 3,000 cars to compensate for losses when the tourism sector came to a halt.

Despite the rising demand, Jallouq believes that the sector’s losses have been too severe to be compensated in one high season.

"People think that in the summer our conditions get better, but I can say that those two or three months are not enough for us to compensate our great losses."

"I can say that we are truly suffering and that our conditions are really bad,” Jallouq added. “If the government does not try to support us and find us some suitable solutions to cover our obligations we will be in big trouble."

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