Speaking of sticker shock: the price of $ 600 for Joe Pohlen to rent a car for two days was twice as expensive as his plane ticket.
The Michigan businessman was stunned, but the experience is becoming more common for U.S. travelers, an unexpected consequence of the pandemic.
Not only have prices soared, but finding a car at all can be difficult.
Pohlen told AFP that Hertz was the only agency that had a vehicle available during a short trip to the east coast.
And while he picked “the cheapest option,” the bill was $ 601.59 for a vehicle that was rented in Maryland and returned in Pennsylvania two days later.
Business and tourist travel stalled in March 2020 when the Covid-19 pandemic hit the United States, causing car rental companies to sell their fleets and stop buying new cars.
Avis said in February it had reduced its fleet by a third.
But now that mass vaccination has allowed travelers to get back on the streets, companies are struggling to cope with the surge in reservations.
As of March, demand increased in areas such as Florida, Arizona and the ski resorts in Utah, Avis boss Joseph Ferraro said in a conference call on Tuesday.
A company spokesman told AFP that, like the rest of the industry, the company is “seeing increased demand for vehicles for spring and summer travel – especially in popular US vacation destinations.”
– replenishing the fleets –
The global semiconductor shortage that has disrupted auto production since the beginning of the year has only made matters worse for companies trying to rebuild their auto inventories.
Because of production problems and pent-up consumer demand, automakers prefer to sell their available cars to people who pay more than rental companies.
That has forced these companies to adapt as best they can, including by holding onto their cars longer.
“One of the reasons for this pandemic is that our vehicles haven’t covered that many kilometers, which gives us the flexibility to keep them a little longer,” Ferraro said.
The story goes on
Avis is also focusing more on vehicle maintenance.
But for consumers, “getting into something that’s three years old, four years old and 30 or 50,000 miles away that doesn’t have the features you’re used to that could really affect your perception of the brand,” he said Ivan Drury, Edmunds’ auto industry analyst.
This is especially true when customers have to pay a lot more than usual.
To avoid frustration, Enterprise recommends that travelers “reserve a vehicle as early as possible”.
“Providing flexible travel dates and store pick-up locations in your search can also help widen your options,” the company said.
The higher cost of rental cars comes along just as the reopening of the economy has led to a boom in demand for certain products and services. This, combined with supply shortages and unforeseen events such as the semiconductor shortage, has driven many US prices soaring.
However, the car rental struggles have proven to be a boon for platforms like Turo, a car sharing marketplace that connects car owners with potential renters.
“We are thrilled that a record number of travelers are discovering the amazing hospitality of Turo hosts, superior choice, convenience and value,” said Turo CEO Andre Haddad in a message to AFP.
Los Angeles emergency room nurse Bobby Binissa has been selling three cars on Turo since the beginning of the year.
“My Tesla has been booked for the past two months, at least until the end of May,” he told AFP.
And he has two old vehicles that he also rents when his family doesn’t need them.
“I increased the prices because the demand is so increasing. But not too high, because if you increase your price, you will have competition from the other hosts.”
According to Drury, the unusual situation has given these platforms the opportunity to truly compete with rental agencies for the first time.
But it won’t be long before companies “operate in a different league” once they have rebuilt their fleets.
Day / white / Hs / stmp