New analysis by Canary Islands rental operator 4Drive puts the total value of security deposits blocked on visitors’ cards at more than EUR 1.6 billion per year - while a growing share of European travellers does not even own the credit card most desks demand.
-- Millions of winter-sun tourists arriving in the Canary Islands each year face an unpleasant surprise at the car rental desk: a security deposit of EUR 300 to EUR 900 blocked on their credit card before they get the keys. According to a new internal analysis by 4Drive, a local rental operator working across Tenerife, Gran Canaria, Lanzarote and La Palma, those blocked funds add up to more than EUR 1.6 billion in deposit holds processed every year - meaning that on any given day, roughly EUR 45 million of tourists’ money sits frozen and unusable.
The analysis is based on public visitor statistics for the Canary Islands - one of Europe’s busiest year-round destinations with around 16 million visitors annually - combined with typical rental volumes, average deposit amounts observed across the islands, and an average hold period of ten days, which frequently extends past the end of the holiday itself.
“The deposit is the part of the rental price nobody talks about,” said Alvaro Medina, founder and managing director of 4Drive, who spent six years working behind international rental desks at Tenerife South airport before starting the company in 2018. “A family lands with a EUR 2,000 holiday budget and EUR 600 of it is immediately locked away. If their card is issued in pounds or krona, they often lose money twice on currency conversion - once when it is blocked, once when it is released. And if there is a dispute over a scratch, the money is already in the rental company’s hands.”
The problem is compounded by a payment-habits shift the rental industry has been slow to follow. Industry surveys consistently show that a significant share of younger European travellers - particularly from Germany and the Netherlands - either do not own a credit card at all or prefer debit-only banking. At most airport rental desks, a debit card is not accepted as a deposit guarantee, leaving those travellers to pay inflated “no-deposit insurance” surcharges or walk away without a car.
4Drive has operated on the opposite model since 2018: no deposit, no credit card requirement, with comprehensive insurance included in the daily rate and payment accepted by debit card or in cash at pickup. The company (https://4drivecanaryislands.com) serves all four islands with airport meet-and-greet and free hotel delivery, and publishes its full payment terms openly on its website.
“We are a small team and every one of us has stood at an airport counter watching someone’s holiday start with a blocked card,” said Femke van Dijk, who leads guest support at 4Drive and works with the company’s Dutch and German visitors. “The fix is not complicated. Insure the car properly, and you do not need to hold the guest’s money hostage.”
With the October-to-April winter-sun season approaching, the 4Drive team advises travellers comparing rental offers to check three numbers, not one: the daily rate, the deposit amount, and the insurance excess - because the cheapest headline price is often the most expensive card hold.
About 4Drive
4Drive is a car rental operator serving the Canary Islands since 2018, with pickup at Tenerife South, Tenerife North, Gran Canaria, Lanzarote and La Palma airports and free hotel delivery. All rentals include comprehensive insurance with no deposit and no credit card required; payment is accepted by debit card or cash. The service operates daily from 07:00 to 23:00 in English, Spanish, Dutch and German.
Contact Info:
Name: Alvaro Medina
Email: Send Email
Organization: 4Drive
Website: https://4drivecanaryislands.com/
Release ID: 89198640
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