Hawaii Car “Rental” Shortage Increases Vehicle Demand
A severe shortage of rental cars has forced visitors to empty their wallets or cancel trips.
MIAMI, FLORIDA, USA, July 21, 2021 /EINPresswire.com/ – The influx of visitors to Hawaii has encountered an unanticipated effect since the onset of COVID-19: a shortage of car rentals.
Those lucky enough to find a rental car themselves pay outrageous prices for the service. On average, people pay hundreds of dollars just to ride in an economy car for a day.
Interestingly, research into vehicle availability reveals that the cost of a standard car ranges from $ 200 to $ 300 per day.
What caused the shortage of rental cars?
The pandemic is primarily the culprit for this car rental shortage. At the onset of the pandemic, Hawaii’s rewarding tourism industry shut down as people were encouraged to stay indoors. In addition, most countries were under lockdown, with restricted entry and exit flights.
How the pandemic hit rental companies
The economic impact of the coronavirus pandemic has hit rental companies hard. Hertz, the country’s power plant, filed for bankruptcy and was forced to lay off an average of 10,000 workers. This resulted in driverless rental cars parked at airports with no customers. In Oahu, most fleets were stored at Aloha Stadium. Some have chosen to sell their cars in used car markets. Fortunately, the roles are now reversed. However, due to the influx of visitors, the number of rental cars available was unable to meet demand. According to passenger data between January and March, around 1.3 million visitors landed at Hawaiian airports. This is a sharp increase as the number of visitors in 2020 was estimated at 2.7 million.
What automakers have done that led to rental car shortages
Some automakers have resorted to desperate measures selling cars to avoid further losses as travel was very minimal across the world. In addition, they had to lay off some of their staff due to limited sales due to the pandemic. Hawaii saw a drop of more than 10,000 rental cars in 2020 alone from the cars available in 2019. Sue Kanoho, interim executive director of the Kauai Visitors Bureau, warned tourists of the volatile car inventory rent. It is difficult to give an estimate of the number of rental cars currently available. Representatives of automakers decline to comment and do not respond to inventory requests. Additionally, the Hawaii Department of Transportation does not maintain a complete rental car registry. However, tax data obtained from rental vehicles provides a figure for available cars.
Car rental companies are unable to meet the demand hence the exorbitant prices
There is a lot of demand, but unfortunately the supply is short. Harrison, the founder of Aloha Rents, admits he has received numerous inquiries from customers regarding obtaining a rental car in recent months. According to Robert, visitors should reserve their cars months in advance. He believes that companies have a good chance of restocking. However, the situation is highly unpredictable as rental car owners avoid encountering the same issues.
Effects of the rental car shortage
The shortage created a ripple effect that was felt throughout the auto industry. During the pandemic, car rental service providers stopped ordering new cars amid the pandemic. The mass sale of their cars has had a negative impact on the value of used car sales. The pandemic has not only affected the rental industry, but has also disrupted supply chains. No new cars were coming onto the assembly line, resulting in a massive shortage of new and used cars. This shortage means car rental companies and dealerships cannot restock easily due to travel restrictions in Hawaii. It is therefore difficult to say whether the business will resume, as it may take much longer to restore the balance.
What visitors can do about the shortage
If you are planning to visit Hawaii, you should consider shipping your car. This will save you from paying exorbitant car rental prices. Shipping a car to Hawaii isn’t expensive, and the process is relatively straightforward. All you need is a reliable Hawaii shipping company, and you are good to go. Have a good trip !
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