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
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.