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
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.