How A Rental Car Shortage Could Affect Your Next Vacation

Plans to travel this summer? With COVID-19 vaccines in full swing, the comfort of traveling is finally in arms reach. CDC guidelines are improving weekly. Most recently, some states have initiated a no-mask guidelines for those who are fully vaccinated. It seems, for the first time in a while, the travel industry is bouncing back. 

This time last year we were reporting on the future of car rental companies. It looked bleak, forcing many once prosperous companies into a full-blown crisis. Major namestakes like Enterprise and Hertz were scrambling to attract customers during a global travel ban. It was an impossible task, with many having to sell off their fleets just to survive the economic downfall. 

Fast forward 12 months later and future vacationers are chomping at the bits to get out on the open road again. After a period of lockdowns and isolation, the call to travel is greater than ever. The only problem: a national rental car shortage is afflicting their plans.

Discover the impact the semiconductor shortage on the car rental industry. 

What led to the national rental car shortage?

The toll the pandemic has had on the rental car industry is ironic to say the least. This time last year these companies were advertising enticing deals just to get travelers behind the wheel of their cars. Now, they don’t have enough cars to fulfill the demand. 

With a global microchip shortage creating chaos in the automotive industry, the car rental industry is yet again facing a crisis that is holding them back economically. 

Frustrated customers are having to book months in advance and make changes to their travel plans just to secure a ride. While travel might be opening up, the means to get places is dwindling. With less rental cars available, these companies are facing heavy demand with little supply.

Expect high prices too

If you’re one of the lucky ones to secure a car rental booking this summer, then expect to pay high prices. The shortage of cars is creating an inflated market both in buying and renting vehicles in 2021. Due to the  limited supply of new cars, old cars have seen a 52% spike in price in just one year. Subsequently leaving car rental companies to work with what they got or get crafty. 

Things have gotten so despairing to meet the rising demand that they are buying used cars at auctions. Quite a big contrast from the bulk-buying of new cars that has defined their business model in years past. 

Other ways to get around during the  rental car shortage

A rental car shortage may be inconvenient, but there are ways to keep the travel going this summer. Check out these helpful suggestions for getting around town at your next destination. 

Utilize rideshare applications

After a rough year for independent contractors, it’s a great way to give back by taking rideshares to and from destinations. The cost-per-day can average less or just as much as rental car wages, so it is worth looking into if you don’t mind having to search for availability. You can even book in advance and reserve a Lyft or Uber for airport travel. 

Try Turo

If normal rental car avenues have failed you yet again, it’s time to give Turo a try. It’s basically the airbnb of car rental — easy, efficient, and often more economical than traditional rental companies. The fun part is you can choose your own car, with hundreds of options available. If you’ve dreamed of exploring Route 66 in a classic Mustang, then Turo is your answer. 

Consider public transportation 

If you’re traveling to a city destination, make sure to check out their public transportation. Some places offer efficient metro, train, and bus services that make renting a car unnecessary. It’s also a great way to see a city from a different point of view. With less time focused on the road, you can really take in your surrounding. 

One consequence of the rental car shortage is that I am getting very into train travel this summer and I could not be happier about it.

— Ella Nilsen (@ella_nilsen) May 17, 2021

If all else fails, call a taxi

These days, taxis are far and few between. But rest assured, they have survived the test of time. There are still plenty of taxi services just a call away. In some areas, taxis can actually cost you less thanks to tax subsidies. So don’t shy away from calling for one if you’re in need of transportation. 

Weathering the rental car shortage in 2021

We hope these travel alternatives suit you well in summer 2021, and for the remainder of the semiconductor shortage. While the aftermath of the pandemic continues to affect us daily, the good news is vaccinated travelers will soon get a taste of adventure again. They be back on the road in no time  — maybe just not in a rental car.