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
BREAKING Legendary hockey broadcaster Bob Cole dies at 90: CBC
Bob Cole, a welcome voice for Canadian hockey fans for a half-century, has died at the age of 90. Cole died Wednesday night in St. John's, N.L., surrounded by his family, his daughter, Megan Cole, told the CBC.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment that is banned at Queen’s Park.
2 teens charged in Halifax homicide: police
Two teenagers have been charged with second-degree murder in connection to an alleged homicide near the Halifax Shopping Centre earlier this week.
Here's why Harvey Weinstein's New York rape conviction was tossed and what happens next
Here's what you need to know about why movie mogul Harvey Weinstein's rape conviction was thrown out and what happens next.
12-year-old hippo in Japan raised as a male discovered to be a female
When Gen-chan arrived at a zoo in Japan in 2017, no one questioned whether the then-five-year-old hippopotamus was a boy. Seven years later, zoo staff made a surprising discovery: Gen-chan, now 12, was female.
Honda to get up to $5B in govt help for EV battery, assembly plants
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
'Deep ignorance': Calls for Manitoba trustee to resign sparked after comments about Indigenous people and reconciliation
A rural Manitoba school trustee is facing calls to resign over comments he made about Indigenous people and residential schools earlier this week.
CTE: Researchers believe widespread brain injury may contribute to veteran suicide rate
Researchers are working to better understand if some Canadian military veterans may be suffering from Chronic Traumatic Encephalopathy, also known as CTE -- a disorder previously found in the brains of professional football and hockey players after their death.
1 arrested in northern Alberta during public shelter order
Residents of John D'Or Prairie, a community on the Little Red River Cree Nation in northern Alberta, were told to take shelter Thursday morning during a police operation.