With more than 30 years of experience in the sector, Luis Hernández is the new president of the Lanzarote 'rent a car' Business Association and wishes the association to be a communication bridge between companies, especially the smallest ones, and the different administrations. The company he currently manages, Autos Guayre, is a family business founded in 1968.
Hernández explains that the vehicle rental sector, which has more than 60 offices spread throughout the island, is in good health despite the increase in costs. Regarding the sector's contribution to reducing emissions, he points out that hybrids are rented a lot, around 20% of the total. However, the electric car is not, as the island is not yet ready for it.
- What is your main objective as president of the association?
To boost the association and help, especially small companies, that need direct contact with the administration.
This year, a transport table has been formed with the different administrations in which we participate. Thus, through us, they have a direct way to resolve any issue. We also help our partners with vehicle insurance.
"Orlando closed, but Conylanza, Jaira, BissauCar, Omega, Gobycar and Turisprime have opened"
- Has the vehicle rental sector in Lanzarote recovered since the pandemic?
The sector in general has, then each company has its own story. I think that right now the sector is in very good health. More than anything because of the strong demand that exists, although there is also a lot of competition.
I don't know if the cause was the pandemic, but Autos Orlando, a company from Gran Canaria that had been operating here for many years, closed in Lanzarote.
However, more rentacar companies have opened after the pandemic: Conylanza, Jaira, BissauCar, Omega, Gobycar and Turisprime.
"Renting a car in Lanzarote is 25% more expensive than before the pandemic"
- How much have costs increased since the pandemic?
There was so much demand and so little production that prices rose a lot, today renting a car is around 25% more expensive than before the pandemic.
In any case, I would dare to say that Lanzarote, at the level of tourist locations throughout Spain, in all of the Canary Islands of course, was the place where car rental was cheapest.
- Is there a market for more companies to emerge in Lanzarote?
There is always a market, the difference is not in having more companies, but in the size of the fleet.
If large companies decide to put many cars on the island, the number of vehicles increases from one day to the next, while if 4 or 5 family businesses open, it is barely noticeable.
"When we are in high season, almost always, what is left to rent in the end are electric cars, the tourist who comes here knows what's what"
- Tourists are increasingly demanding electric and hybrid cars, how is this issue going?
It is a medium to long term issue. We cannot rush. We have to be realistic, at the moment the charging points on the island are minimal, if not practically non-existent.
If we were to start putting electric cars here en masse, we would create a problem, because the charging points would collapse. I think everything has to take its rhythm. First, more charging points are needed.
An investment in electric cars is too risky today, since we could only rent it for days. A customer who takes a car in the morning, does not need to charge and the car lasts a day or two maximum, but for more days it is very complicated, if the customer stays in a hotel, they have nowhere to charge it.
"The hybrid is in high demand, it works very well, consumes little, and is silent"
- What percentage of cars in the sector are electric or hybrid?
The hybrid may be around 20%, but the electric I don't think reaches even 5%.
When we are in high season, almost always, what is left to rent in the end are electric cars, the tourist who comes here knows what's what, knows that there are problems to charge, they don't want to waste time. The hybrid is in high demand, it works very well, consumes little, and is silent.
- Second-hand cars that are transferred in the Canary Islands have an average of 14 years, how old is the rentacar fleet in Lanzarote?
In general, in the Canary Islands, the fleet of vehicle rental companies is very modern. The renewal is voluntary up to 6 years, although extensions of two more years can be requested up to eight.
However, in Lanzarote, the average life of a rental car could be between 4 or 5 years maximum.
