Car rental agency

Sixt takes advantage of the new desire to travel

For years Germans could hardly get around the world due to the Corona pandemic, but now they seem to want to relieve the pent-up wanderlust and catch up on everything. But rising demand leads to further shortages – and higher prices. Pullach-based car rental company Sixt, which has just announced the most successful first half of its history, is also benefiting from the new desire to travel: according to the report, the company has made almost 60% of revenue additional from January to June. than in the first six months of last year, which, however, were still marked by global shutdowns. This is why this figure is even more important: Sixt’s revenues for the period were 16.9% higher than in the year 2019 before Corona, and pre-tax profits almost doubled compared to the first half of 2019, according to data from Sixt.

At the same time, the car rental company has to deal with the tense market situation after the pandemic years: Due to the temporarily sharp drop in demand due to closures and travel restrictions, Sixt had also significantly reduced its fleet from an average of 151,000 before Corona to 114,000 in 2020 in order to reduce costs. It has now returned to around 130,000 vehicles, and will not return to its previous level until 2023. However, car rental companies cannot fully meet the growing demand, as they are only cautiously restocking their fleets and car manufacturers, in however, may only supply a limited number of new vehicles due to problems with the supply chain. This results in higher car rental prices – more recently there was talk of average prices of almost 90 euros per day. According to Germany’s Federal Statistical Office, rental car prices increased by 48.7% in the year to May 2022. Co-CEO Alexander Sixt was unable to say whether prices will fall again.

In addition to “significant revenue growth in Germany”, Sixt now benefits in particular from strong international activity, particularly in Europe and the United States. The foreign share of the group’s revenues rose from 64% to more than 70% in one year. According to the company’s own figures, Europe accounted for 40.6% of Sixt’s revenues in the first half of the year, the United States 29.8% and Germany 29.6%. In Italy alone, income has tripled. Sixt hopes for further momentum with additional stations in the United States and now also in Canada and Australia. “Our internationalization strategy continues to pay off and the growing business is strong evidence of the strength of our business,” said Alexander Sixt.

Given the positive first half, he expects demand to remain high through the summer months. For the fall, however, there are “considerable uncertainties given the many looming macroeconomic headwinds in Europe and the United States. The supply bottleneck at automakers also remains a challenge, it said. – he added. For 2022 as a whole, Sixt continues to expect “a significant increase in group turnover compared to 2021” and a pre-tax result in the high range of 380 to 480 million euros. – compared to 442 million euros in 2021.