Summer Holiday Hotspots Where Rental Car Costs Just Jumped Massively
Flights and hotels get all the budget attention, but rental cars can easily break your vacation fund. In 2026, summer rental prices spiked in popular spots, with one city seeing a nearly 40 percent increase. These surprise costs may encourage travelers to compare airports, pickup points, or hotels.
Barcelona Gets Expensive
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Renting a car in Barcelona for a week costs about $592 on average in 2026. This price is a big jump from the previous year. Surprisingly, rental companies charge very different rates for the same trip. One company was hundreds of dollars cheaper than another. Travelers planning beach days or city sightseeing should compare quotes before landing in Catalonia.
Milan Climbs Higher
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Milan saw a smaller percentage increase than Barcelona, but its final rental cost was higher. A compact car averaged around $619 for a peak summer week. Many travelers start in Milan before driving to Lake Como or the Alps, so vehicle demand remains high.
Faro Loses Part Of Its Bargain Status
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For years, the Algarve has long enjoyed a reputation as an affordable travel destination. Faro still offers great value, even though car rentals are expensive at around $432 per week. Surprisingly, these prices are still lower than pre-pandemic rates. Travelers heading to southern Portugal’s beaches and golf courses can find decent deals, but the era of incredibly low prices seems to be ending.
Dalaman Raises Eyebrows
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Turkey attracts many visitors with its warm weather and beautiful coastlines. However, car rental prices in Dalaman are rising. The average weekly cost reached about $522 in 2026, after a big increase. This matters because travelers need to explore beyond their resorts. Popular spots along the Turquoise Coast may require a car.
Dubrovnik Keeps Moving Up
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Croatia is now one of Europe’s most popular vacation spots, famous for its historic streets and beautiful coast. A small rental car in the region averages about $490. While the city itself is walkable, many visitors rent cars to explore smaller beach towns and nearby islands using local ferry routes.
Crete Remains Costly
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Not every destination saw a major increase in 2026. Crete actually experienced a slight decline compared to the previous year. However, the island nonetheless remained an expensive place to rent a vehicle, averaging around $558 per week. Geography explains why. Crete is massive, and its top beaches, historic sites, and villages are far apart. The potential need for vehicles keeps rental demand steady during the busy summer season.
Munich Offers A Pleasant Surprise
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Despite rising travel costs elsewhere, car rental prices in Munich dropped. The average rate fell to about $393. Tourists frequently use Munich as a base to explore Bavarian castles, lakes, and mountain scenery. These lower rental rates offer a rare win for travelers on a budget.
Geneva Brings Better News
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Switzerland rarely offers bargains, so Geneva’s price drop is a pleasant surprise. Car rental costs fell sharply compared to 2025, but the average weekly rate is still down to around $604. Geneva serves as a perfect starting point for scenic mountain drives across the Alps. Travelers planning a European road trip in 2026 should find the city much more affordable than before.
London Drops Back Down
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London rental car prices dropped significantly in 2026. Average weekly rates fell to about $422. Most visitors rely on the Underground and trains while staying in the capital city. However, a car becomes highly useful for countryside escapes. These lower prices give travelers extra flexibility to visit historic castles, coastal villages, and scenic national parks.
Florida Still Delivers Value
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Florida is a top destination for rental cars due to its theme parks, beaches, and big cities. The study shows average weekly rentals cost around $455, which is lower than last year. Many companies even offer rates well below that average. For summer travelers who wish to explore the state by car, Florida offers some of the best overall value in the rental market.