Potential Headaches for Secure Transportation providers who rent vehicles.
Since 2013 when ISDA conducted its first Executive Vehicle Survey, the data have consistently indicated that Security Providers rely heavily on renting vehicles for their Secure Transportation needs.
With pandemic restrictions easing, business and consumer travel is back to pre-pandemic levels. One problem, there are rental car shortages.
The shortages are due in part to two issues.
When the pandemic began, rental vehicle companies had an overwhelming supply of vehicles with no business travel or vacations. To try and recoup their losses, a lot of companies sold their inventory off.
The second issue is the global microchip shortages have cut the production of new vehicles and continue to deal a heavy blow to car rental companies.
The bad news is that the vehicle shortage — and the headaches for car renters — won’t ease until 2022 or later, according to vehicle rental industry experts.
According to the Los Angeles Times,
“Because of the shortage, car rental companies are keeping their cars longer before selling them and replacing them with new vehicles. In the past, rental firms sold their vehicles when they reached 25,000 to 50,000 miles, but they are now keeping them until they reach nearly 90,000 miles. Rental companies are also trying to restock their aging fleet by buying back cars that they previously sold off at auction to used-car dealerships.”
Companies who rent vehicles, like the rest of the United States, it seems, are having a tough time filling jobs to help deliver vehicles from low-demand to high-demand areas.
With all the issues, car rental prices have increased by 200% in some locations.
According to the Times, “Industry experts say travelers who want to avoid such headaches should book vehicles as early as possible and try to choose car rental outlets in small or midsize airports where demand is lower.”