Pandemic cutbacks, low fleets, and a steady rise in demand are brewing a storm in the car rental industry. Furthermore, a global shortage in semiconductor computer chips has stopped the production of new cars! In short, car rental providers won’t be able to meet the rising demand and we recommend you book in advance.
Quick Links
Why are car rental prices increasing? | Fleet Shortage | Computer chip shortage | Higher demand for car rental | Booking your car rental in 2022
Book your car rental as soon as possible
This may seem like a classic industry profiteering off the pandemic story, however, the industry has in fact been so heavily hit that some companies are struggling to stay in business. Rising demand and struggling providers are going to make securing any last-minute booking very tricky for next year!
For extensive details on why car rental prices have risen, read our blog on why car rental is more expensive. Our main advice is to book far in advance so you don’t risk missing out or having to pay for a costly rental. Book now at Zest Car Rental to save on your next car rental before prices steadily increase.
Why are car rental prices increasing?
There were many setbacks from the pandemic within the car rental industry. Many of these setbacks haven’t had a significant effect due to the low demand for travel within the past two years. However, now demand has considerably risen, these setbacks are becoming a major issue! Fleet shortage, computer chip production, and high demand are the biggest impacts in the industry.
A statement from the Zest Car Rental Managing Director
The manufacturing shortages coupled with an expected increase in travel means demand will inevitably outstrip supply. We strongly recommend our customers to book early and secure their car rental.
– Rory Sexton
Fleet Shortage
In lockdown virtually no one was renting cars. As a result, rental fleets were significantly reduced because providers had to sell some cars in order to cover their overheads. Now that travel has opened back up and demand has returned, car rental providers desperately need to increase their fleets. This is simply impossible to do quickly.
Computer chip shortage
Another factor that is affecting car rental providers is the global semiconductor computer chip shortage. But what have computer chips got to do with cars? The latest models of cars are actually reliant on the production of computer chips for their electrical components. This unfortunately has stopped new car production to a grinding halt.
CEO of the semiconductor computer chip manufacturing company, Marvell Technology, reported that the chip shortage will last until at least 2022 meaning this issue will prolong for a while longer. The computer chip shortage accompanied by the loss of revenue means increasing fleet sizes back to normality is near impossible. For more information on the semiconductor computer chip shortage, read the BBC News article on why is there a chip shortage.
High demand for car rental in 2022
After nearly two years locked inside, the demand to travel has grown greater and greater. Now things are (pretty much) back to normal, everyone is looking to get a holiday planned or booked in for 2022. As prior discussed, the car rental fleets are small in numbers and unable to grow. Providers will struggle to keep up with the high demand so car rental bookings will get snatched up quick!
Booking your car rental in 2022
We apologise for any inconvenience this gives you and your holiday plans. If we could change the prices we would but unfortunately, it is out of our control. Our main advice is to get your car rentals booked in as soon as possible to ensure you’re still paying a reasonable price. Furthermore, don’t fall for any quotes that give unrealistically low prices, these will often include hidden costs and hard sells that drastically raise the advertised price!
Book as soon as possible and don’t leave it to the last minute if you don’t want to spend a fortune! Book with Zest Car Rental for full customer support and free cancellation if you change your mind. We are also Which? Recommended Provider 2021 so you’re in safe hands when you book with us.
View our full Booking Terms and Conditions.
