Why rental cars are suddenly so hard to find?
Why rental cars are suddenly so hard to find? The sudden surge in post-vaccination travel is colliding with a relative shortage of rental cars. Rental-car companies sold a huge chunk of their fleets—hundreds of thousands of vehicles—to survive the pandemic.
Why is there such a shortage of rental cars?
That is because the shortage of semiconductor chips that has held up auto manufacturing persists, leaving rental car companies to operate with lower inventory after they sold off chunks of their fleets in the early days of the pandemic. Building that stock back up has been more difficult than expected.
Are rental cars still scarce in 2023?
Through 2023 at least, limited vehicle availability will continue. However, most experts report some recovery on the horizon. There were finally early signs of increased allocation to rental fleet channels in fall 2022. Operators still need to be clever in how they source cars as we inch toward supply recovery, though.
What is the demand for rental cars?
Worldwide demand for car rental services is expected to increase at a CAGR of 9.6% during the forecast period (2023 to 2033). The global market for car rental is set to hit US$ 200 billion by 2033. North America held 52% share of the global market in 2022.
Why is renting a car for a day so expensive?
Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic. As demand for rental cars fell, rental car companies sold segments of their fleets to stay in business during the lean times.
Why are rental cars suddenly so expensive?
Rental car prices have been surging because demand is high and supply is low, both due to the coronavirus crisis and the chip shortage. To mitigate it, I should book as soon as I'm even *thinking* about traveling somewhere. I should also avoid certain locations (especially those near nature destinations).
Why are rental cars so expensive this summer?
Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic. As demand for rental cars fell, rental car companies sold segments of their fleets to stay in business during the lean times.
Why are car rentals so expensive in the USA?
A supply crunch, and corporate profits However, as the pandemic waned and demand picked back up, these companies couldn't quickly restore their fleets. Microchip shortages and other supply chain issues throttled supply and drove the cost of cars higher. “The surge in demand is what created that crunch,” Mangahas says.
Why do most people rent cars?
Whether you have a new car and you want to keep the mileage low, or you have an old car and you're trying to keep it going, renting a car is a great way to save the wear on your vehicle. Rather than take your auto on the highway for a cross-country journey, consider renting a car for that next road trip!