Volcanic Ash Cloud Adds To Economic Gloom For Holiday Car Rental Businesses

April 17, 2010 - PRLog -- The rental car industry in Spain and Portugal had been slowly recovering from the economic slowdown that lead to widespread rental car shortages during the Summer of 2009.

Matt May from Blue Valley Car Hire explains "this is the start of a busy time of year for tourism in Spain and Portugal, and the shortfall in revenue for the car rental companies caused by the flight cancellations will not be welcome. The situation is difficult for the local car rental businesses in tourist resorts which lease cars for the busier periods. These cars will now be parked up, waiting for the return of tourists from Northern Europe."

The situation is likely to lead to higher summer vehicle hire prices as companies look to recover the shortfall in income. With no immediate sign of an end to the ash clouds, the car rental industry is bracing itself for more customer cancellations and no-shows.

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Blue Valley Car Hire are a UK company offering an internet booking service for low cost car hire at a number of locations in Southern Europe including Alicante, Faro, Malaga and Murcia.

Please visit our website http://www.bluevalleycarhire.com