(MENAFN- Khaleej Times)

Rental cars in the UAE are seeing an uptick in demand of up to 40 per cent during the back-to-school season. While some of it is driven by new families moving into the country, the rising cost of school transportation is another reason.

“Many expat families move in ahead of the academic year , creating a surge in transportation needs while they settle into new routines,” said Soham Shah, CEO and Founder of SelfDrive Mobility.“The region's rapidly growing number of schools adds to the demand, with more parents, students, and staff requiring mobility solutions. Teachers, too, often arrive during this period as they scout and secure new jobs, further driving short-term rental requirements.”

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Anudeep Raghuthaman, Head of Sales and Marketing at Dollar Car Rental, explained that the company had typically seen a“30 to 40 per cent increase in rentals during this period” due to various reasons.“Many households find renting a vehicle an efficient way to manage daily commitments such as school drop-offs, extracurricular activities, and weekend errands,” he said.“Renting a vehicle for a few months often offers greater flexibility and cost efficiency, prompting rental companies to introduce targeted offers and extended-term packages.”

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Almost all UAE students will go back to school on Monday, August 25 after nearly two months of summer break. On Tuesday this week, the Ministry of Education announced the various preparations it had made to welcome back more than one million students. Federal government entities have announced flexible work timings on the Monday to allow their employees to accompany their children to school.

According to Suhale Showkat, Head of Retail at Thrifty UAE, there is a preference for larger vehicles during this time of year.“Families and groups often opt for SUVs or minivans to make carpooling easier and more efficient, thereby saving both time and money while reducing wear on their vehicles,” he said, adding that companies usually expand their fleet availability“by around 20-30 per cent” during this period to meet the demand.

New schedules, costs

With the new academic year, many parents have to deal with a change in schedules and routines, which according to Soham was a key point in people opting for rental vehicles.“Families are turning to rentals primarily for flexibility and convenience during schedule transitions,” he said.“Rentals offer predictable costs, full coverage and short-term commitment, ideal during the back-to-school period.”

Anudeep said that cost considerations also influence this choice.“School transport services, such as buses or private vans, can be expensive, particularly for families with multiple children,” he said.“Renting a car can offer a more cost-effective alternative while allowing parents to manage drop-offs and pick-ups directly.”

He added that temporary circumstances can also drive rentals when families“may need short-term solutions” while waiting for a vehicle to be delivered or repaired, or during transitions to a new city.

Taxi services also have a high demand during this period, with Careem announcing that last year alone, more than 300,000 school rides were facilitated. The facility which has packages starting at Dh260 for 20 rides can be shared by up to three students from the same location as long as no additional stops are needed.

Long term rentals

Soham said that his observations indicate a“growing preference” for long-term rental options of 6 to 12 months among families, expats, and educators.“This is especially during transitions such as the start of the school term or relocations,” he said.“This trend aligns with broader leasing patterns."

Suhale said that long-term car rentals can offer a“significant” cost advantage.“Monthly rentals can save customers 10 to 30 per cent over daily rates, with added benefits such as insurance, maintenance, and roadside assistance often included,” he said.

Anudeep said that many parents and teachers“prefer the stability and convenience of having a vehicle available every day, rather than renting by the day or week, which reduces the overall costs of their rentals.”

He added that with the demand increasing, many companies are expanding their fleets - boosting not only the number of vehicles but are also“diversifying their fleets” with an increase of“5 to 10 per cent of both luxury and hybrid vehicles” to give better choices to customers. He said that the industry is also“embracing technology” and offering“flexible solutions such as smart kiosks and centralised booking systems”.

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