In 2020, the pandemic hit the rental car industry badly. Rental car companies sold approximately 30%-40% of their fleets to stay afloat with the lack of demand. However, now that people are getting vaccinated and travel restrictions are easing, the demand for rental cars has sky-rocketed. In fact, business has more than doubled since this time last year.
So why can’t the rental car agencies just buy more cars?
That certainly sounds like a logical solution, but it’s more complicated than that. Auto production at Ford and GM is almost at a complete standstill right now because of a semi-conductor shortage. The rising cost of cars prevented rental car companies from restocking their supply before the travel boom.
But what does that mean for you?
Unfortunately, with the decreased supply and growing demand for rental cars, that puts travelers in a difficult position. Sunny vacation spots like Florida, Arizona, Nevada, and Hawaii have rental cars going for up to $500 a day—and that’s if you can even get one. Things have gotten so crazy that tourists in Hawaii have started renting U-Hauls when they couldn’t find rental cars.
What can you do to secure an affordable rental car?
Make sure you have a rental car reservation well in advance. Be sure that the area you’re traveling to has rental cars in your price range before making other travel arrangements. At the same time, avoid prepaying because prices could drop before you actually travel and many agencies allow you to make a reservation without prepaying.
Lauren Luster, the communications director at Hertz says that travelers should expect the shortage to go on for several months. She recommends travelers to look for rental car agencies in neighboring areas to their airport where there may be more cars available. The prices at neighboring agencies will likely be substantially more affordable since airport rental cars often are the first to book. However, be sure to still book your car with a reputable agency to avoid rental car scams.
What are some rental car alternatives?
If the rental prices are just too high to stomach, there are alternatives to traditional rental cars.
You could try a car-sharing service like Turo or Zipcar. Think Airbnb—but for cars. Turo allows you to search for cars within your destination rented out by local owners, not agencies. Meanwhile, Zipcar lets you rent a car round trip by the hour or by the day, so if you only need a car to get to dinner each night, Zipcar could be the solution for you.
You can also have your TMC help you secure a private car or limo service.
If you’re traveling to a metropolitan area, you might be able to rely on public transit, Uber, Lyft, and taxis. You might not actually have to drive a car yourself at all.
For more information on how rental car agencies are working to help keep travelers healthy and safe amidst the pandemic, like here.
