BBJ: How has the auto rental market evolved in Budapest over the past year, especially in light of the 10-15% increase in incoming passenger traffic?

Gábor Dévai: I’d divide this issue into two parts. The number of transactions by official airport rental providers is not growing in direct proportion to the rise in passenger numbers. This is partly due to the increasing number of off-site airport providers, who are capitalizing on the expanding online market and capturing a significant portion of the growth in demand. On the other hand, a large segment of the arriving passengers are city breakers who rely on alternative mobility solutions, such as ride-hailing, car sharing, or public transport, rather than renting a car.

BBJ: Which tourist markets currently represent the fastest-growing customer base? What impact does the increase in Chinese, overseas, and Middle Eastern flights have on your business?

GD: The Israeli market was extremely strong, but unfortunately, due to the current political situation, demand is now trending downward. This customer segment continues to arrive in Hungary regularly, but the most significant influx comes in spring for the pilgrimage to the “wonder rabbi,” when 70,000 Jewish visitors arrive over just three days. The Middle Eastern and Chinese customer base continues to grow steadily. These customers typically rent larger, premium, automatic cars and tend to be less price-sensitive.

BBJ: Which periods of the year are the strongest? How challenging are seasonal fluctuations for resource planning?

GD: We handle resource surpluses with students; we employ a stable team of motivated young people who love cars, thrive in a fast-paced environment, and speak multiple languages. They’re part of our community and enjoy working with us. We even have a high school senior preparing for final exams who performs just as well as our full-time colleagues.

We see demand spikes around major tourism events: Easter, the Sziget Festival, Formula 1, the “wonder rabbi” holiday, New Year’s Eve, Christmas, and, of course, the summer high season, which typically runs from June 20 to August 20, when school is out and tourists start traveling to Hungary. During the summer, the average rental period is around five days.

BBJ: You say city break tourists generally don’t rent cars. Do you have any strategies to reach this group, or do you focus more on other segments?

GD: They usually don’t rent unless they’re leaving Budapest (for example, to visit Szentendre). Even then, it’s typically on an ad hoc basis, and they prefer downtown pickup locations. In this case, our virtual office setup and fixed downtown location are beneficial; tourists can conveniently pick up their vehicles.

BBJ: Supply is expanding faster than passenger numbers through new car-sharing options, onsite/off-site providers, and the appearance of new brands. How is this affecting competition?

GD: The market has changed significantly in recent years. The arrival of services like Uber already had a significant impact on mobility. Since the airport allowed car-sharing providers to enter the mix, the situation has become even more fragmented; the existing demand is now split among more players. The express shuttle service starting from Deák tér also draws away customers, particularly city breakers.

This article was first published in the Budapest Business Journal print issue of June 27, 2025.