Car Rental Shortage Predicted for Upcoming Holiday Season

The pandemic has changed a lot about how we live our lives and how we travel, but perhaps one of the most surprising aspects of its impact on travel is the surge in rental car prices in both the US and Canada.

When the pandemic and its subsequent lockdowns brought almost all travel to a halt, car rental companies sold off a lot of their stock to make up for the lack in demand. Now, however, they don’t have enough cars to satisfy Americans’ desire for hitting the road in a car that is not their own.

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The car rental shortage and price hike are predicted to continue into the holiday season. KAYAK, using data from its car rental searches, has already found that holiday demand is up 230 percent compared with pre-pandemic levels, with the average cost per day increasing 75 percent from 2019.

So how can people get around this price hike? The best way to do so is to reserve your rental car at least two weeks in advance to get a good price. With a shortage of rental cars, though, you’ll probably want to reserve a rental car even earlier.

Different cities will also be more expensive or less expensive than others. KAYAK found the top ten least expensive and the top ten most expensive cities to rent a car, so you know which ones you should rent a car in and which ones you definitely shouldn’t.

The top ten cheapest cities to rent a car:

– Anchorage, Alaska - Anchorage’s rates are about $53 a day, down 50 percent compared to the national average.

– Fairbanks, Alaska - Fairbank’s rates are at $63 a day, down 41 percent from the national average.

– Burbank, California - Rental cars cost an average of $68 a day in Burbank, down 36 percent from the national average.

– San Diego, California - San Diego’s car rental rates are at about $72 a day, down 32 percent from the national average.

– Sacramento, California - Travelers can book a rental car for about $78 per day in Sacramento, down 27 percent from the national average.

– Milwaukee, Wisconsin - Milwaukee’s rates are about $78 per day, down 27 percent from the national average.

– Santa Ana, California - Travelers to Santa Ana can rent a car for about $81 per day, down 24 percent from the national average.

– Cleveland, Ohio - Cleveland’s car rental rates are about $81 each day, down 24 percent from the national average.

– Seattle, Washington - Visitors to Seattle can snag a car rental for about $81 a day, around 24 percent cheaper than the national average.

– Los Angeles, California - Los Angeles’ rates are about $82 a day, down 23 percent from the national average.

The most expensive cities to rent a car:

– Maui, Hawaii - Rental cars cost about $183 per day on Maui, an increase of 72 percent compared to the national average car rental rate.

– Honolulu, Hawaii - Honolulu’s car rental rates are about $164 a day, up 54 percent from the nation’s average rate.

– Lihue, Hawaii - Travelers to Lihue will have to pay $164 per day for a rental car, a 54 percent increase in price.

– Jackson, Wyoming - Jackson’s rental car rates are about $156 a day, an increase of 47 percent from the national average.

– Kailua, Kona, Hawaii - Travelers to Kailua will pay about 44 percent more than the national average for their rental cars, at about $153 each day.

– Hilo, Hawaii - Hilo’s car rental rates are about $152 a day, up 43 percent from the national average.

– Bozeman, Montana - Visitors to Bozeman will pay about 35 percent more for their car rentals than the national average daily rate, at about $143 each day.

– Colorado Springs, Colorado - Colorado Springs’ daily car rental rates are about $121 per day, which is a 14 percent increase from the national average.

– Myrtle Beach, South Carolina - Travelers who book car rentals in Myrtle Beach will pay 13 percent more than the national average, at about $120 per day.

– Salt Lake City, Utah - Salt Lake City’s car rental rates are up 12 percent from the national average, at about $119 per day.

If price is more important than the destination, and you're simply itching to get away from your home office and out exploring, try visiting a place less visited, where the prices of rental cars (and perhaps everything else, too) will be cheaper.