When COVID-19 first hit, home owners and renters all over the country suddenly became hermits, reluctant to leave the comfort, safety, and security of their own homes. The fear of becoming infected with a virus that, at the time, no one knew very much about, was paralyzing. Once distancing and travel restrictions were lifted, consumers stormed out of their homes and back into the world, eager to have some fun!
It is commonly understood that supply and demand have a direct and important connection. When supply is high and demand is low, prices go down. When supply is low and demand is high, prices go up. This is what we have been seeing as it relates to renting cars. And as such, consumers have been finding it hard to get their hands on a rental car when they want to travel. Why? Well, as travel restrictions eased and restaurants lifted their social-distancing limitations, people immediately took the first opportunity they could to return their lives to some semblance of normalcy, like a desperate fish out of water.
Areas with warmer weather are seeing the most dramatic jumps in prices. Hawaii and Orlando, FL have seen a drastic influx of travelers that has overwhelmed the supply of available rental cars. Before travel restrictions were eased, many car companies elected to sell off their unused inventory in order to stay afloat and not feel the painful effects of the loss of business. Businesses needed the demand to stay at a high level and that just did not happen during the virus outbreak. And, to make matters even worse, the current semiconductor chip shortage has made the process of finding new cars to fill their fleets a lot longer. Going back to that concept of supply and demand, if there is a shortage of supply, the cost of renting a vehicle is going to go up. That jump could be significant in certain areas of the country, especially in areas that attract a lot of tourists or vacationers.
Experts recommend planning farther ahead if you want to plan a family trip. The farther in advance you make your plans, the likelihood your rental car prices will be lower and more manageable are good.
Car Dealerships may be a good option for anyone who is planning to take a road trip. This is because, unlike what you see at rental car places where the prices are inflated, the prices are fixed at car dealerships.
The best way to combat high prices for rental cars is to plan your trips and vacations well in advance. Safe travels!