Rental car shortage caused by pandemic, Alberta Motor Association says
Fleets diminished by lack of demand now short of vehicles as restrictions loosen, travel resumes
High demand and little supply have created a rental car shortage in Alberta — and industry experts say it's because of the pandemic.
Craig Markin experienced it first hand. He had heard from friends travelling to Hawaii that rental cars were either hard to come by or extremely expensive.
However, he hardly expected to experience the same issue while visiting family in Edmonton.
"[At first] I was like, well, that's Hawaii. That's sort of more of a tourist destination everyone around the world is going to," Markin told the Calgary Eyeopener on Thursday.
"So I go on about a week before and look in Edmonton — and absolutely no cars are available anywhere in the city."
Markin said he has been relying on Ubers, cabs and friends to drive him around during his trip to Alberta, and according to Roland Van Meurs with the Alberta Motor Association, this wasn't a case of bad luck.
"As long as COVID was lasting, a lot of the car rentals had to sell a good chunk of their fleet, just … from a finance perspective," Van Meurs said.
"[Now] there is not a lot to be tapped. It's pretty frightening."
Double to triple the price
The car rental shortage started in the United States and Canada when nearly all travel was halted at the outset of COVID-19 lockdowns and travel restrictions.
Car rental reservations plummeted, prompting companies to downsize fleets and lay off workers.
But now, the situation has changed — and as restrictions loosen, travel resumes and demand returns, rental car companies with diminished fleets are now struggling to keep up.
And from economy cars to SUVs, Van Meurs said AMA's data is showing that no rental vehicles are available — and car rental operators are hiking up rates amid the tight supply.
"We've seen anything from double to triple … the price," Van Meurs said.
"And, you know, we anticipate that will probably remain for the rest of the summer."
'At least you know you'll have a car'
Prices will likely fall as fleets are replenished, but losses need to be recouped to do that, he said.
As for what people can do to ensure they get a car rental, he suggested making bookings "as far in advance as you possibly can" — up to two months out.
"That way, at least you know you'll have a car," he said.
Van Meurs also recommended customers take some extra steps to ensure they aren't left in the lurch, such as calling the day before going to pick it up and printing out confirmation information to bring.
"You don't want another scene of the movie Planes, Trains and Automobiles, that's for sure," he said.
With files from the Calgary Eyeopener, Brett Bundale and The Canadian Press.