A year ago, air travel came to a near halt, leading to a glut of rental cars. Rental companies sold off more than a half a million cars, about a third of their combined fleets, just to generate cash they needed to survive the crisis.
Following a year of deep losses, rental car companies have been unable to rebuild their fleets, especially with auto plants shut by a shortage of computer chips needed to build cars. This has led to a severe shortage of rental cars in vacation hotspots, resulting in sky-high prices for vacationers.
A recent of car rental sites Wednesday showed a Kia Rio, a sub-compact car, going for $300 a day in Orlando, next week. On Maui, Hawaii, the only rental available next week is a Yukon for $500 a day. The shortage is pronounced in vacation destinations. It’s still possible to find cars elsewhere, such as Omaha, for about $300 a week, rather than a day.
Read the article at CNN Business.
