Why rental car demand is high in Manitoba
As travel restrictions ease in Manitoba, the demand for rental cars is increasing.
Don Miller, director of operations at U-Drive Car Rental, told CTV News car rentals dropped substantially when COVID-19 hit.
“The only way to combat [the loss of revenue] is to ‘de-fleet’ or sell cars to the point where it makes sense to continue operating the business,” Miller said.
But as borders open up and the number of travellers increase, there’s fewer rental cars available—and the automotive industry as a whole can’t keep up with demand.
Earlier this week, the Canadian Press reported that a global shortage of semiconductors has crippled vehicle production and caused lengthy delays for new cars and trucks.
“It’s very difficult for us to ‘fleet up’ right now,” Miller said. “It’s not something you can do overnight.”
The car rental shortage has been dubbed ‘carpocalypse' in the U.S., but reported skyrocketing prices haven’t hit Manitoba yet.
However, Miller said the demand for rental cars is increasing based on U-Drive’s reservations, bookings, and the number of rental vehicles they consistently have available—but doesn’t think demand has hit its peak here yet.
“As the airport opens up, there’s no doubt about it.”
But, like any business that relies on supply and demand, Miller said the industry will level off, likening it to lumber shortages earlier this year.
“As things normalize, pricing will normalize,” Miller said.
A CAA Manitoba spokesperson said they’ve noticed a slight increase in car rentals this summer, and added retail locations around Winnipeg have been receiving more inquiries about booking car rentals across Canada, the U.S., and Europe.
—With files from The Canadian Press
CTVNews.ca Top Stories
RCMP uncovers plot to sell drones and equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Thieves use stolen forklift to rip cash machine out of U.K. bank
Police in the U.K. are searching for a group of suspects seen on video using a forklift to steal a cash machine from a bank.
'There was a lot of black smoke': Crane operator sounds alarm while trapped during highrise fire in Halifax
A tower crane operator alerted emergency crews after noticing a fire on a construction site in Halifax Tuesday morning.
Cherry blossoms blooming in Canada: Here's what to know
There is a swaying sea of colour in some cities across Canada, and it's a sure sign of spring: cherry blossoms are in bloom.