Car rental costs post-pandemic

Vacation planning is top of many people’s to-do lists. You may already have a destination in mind (or more than one) but as you begin your planning, costs may be higher than you expected.

There’s no denying that since the COVID-19 pandemic, prices have increased in many areas, including tourism, from hotels to car rental costs, for several different reasons. But don't let this discourage you.

By planning ahead and with a bit of knowledge, you will be able to safely plan a dream trip while keeping costs under control. We have looked at statistics, from 2019 to 2022, comparing inflation figures and different causes, to offer you a useful picture of the current economic situation and provide tips for saving money on car rental. Don't give up traveling comfortably, where you want and at your own pace.

Just follow tips and tricks from our Hertz travel guide to enjoy your well-deserved vacation!

Why have car rental costs risen?

As more and more travelers are choosing rentals, the high price of fuel and demand seems to be pushing the prices up.

It started with the global pandemic at the start of 2020, the aftermath of which is still being felt in every economic area, an event called the long-tail of Covid. There’s also been geopolitical tensions and rising energy prices that have piled onto this problem.

With a big collection of issues pushing it, it’s no surprise that overall rising costs have a direct consequence on car rental cost, the price of which, according to data compiled by the Bureau of Labor Statistics, has increased by almost 50 percent since the beginning of 2019. It’s not only rental cars though! The inflationary impact has been felt by all hospitality and tourism sectors: in the same time frame, hotel prices have increased by seven percent and, overall, the costs of long-distance public transportation, such as trains and planes, have increased by up to 16 percent. Although prices have decreased slightly from last year, they are still much higher than pre-pandemic costs.

What impact did the pandemic have on car rental?

Since 2019, the average rental car cost per day has increased by nearly $35 per day. There are many reasons for this continued increase in car rental prices in the United States, most of them due to the COVID pandemic.

The initial and prolonged slump in rentals, due to the lockdown first and restrictions later, led to production at an all-time low, resulting in a reduction in fleets and car rentals (-51 percent of rentals in 2021 compared to pre-pandemic). When the recovery began with the reopening to travel, and tourism, companies still found themselves with a limited fleet due to component shortages and supply chain disruptions that reduced global vehicle production. The unexpected global microchip shortage (essential components of modern vehicles) has affected production, with employment and cost consequences.

It is as simple as this: if there are fewer fleets, and demand is increasing because of the undoubted benefits of traveling in a rental car, it is only natural that average prices are rising, regardless of the supplier, as this is not just a global event but a simple rule of the market.

But, at the end of the day, the lower availability of cars is not an unsolvable problem. Simply follow a few tricks for a smart booking and book your rental car with Hertz for the best deals.

Are there affordable ways to hire a car?

With car rental, you’re in charge. From the vehicle model to the route, to the stops along the way – you’re in the driving seat. Whether you’re planning a solo vacation, a couple’s trip or something for a larger group, car rental gives you freedom and flexibility that you won’t find elsewhere.  

Here are some Hertz tips on how to save money on car rental:

• Book early, when you can, it will give you more choice and reduce the cost
• Be flexible, if possible, with your dates
• Take advantage of discounts or loyalty programs
• For convenience you can also choose to pre-pay
• Check the fuel policy and choose the one that suits you best
• Look for quotes for different destinations
• Have the same pick-up/drop-off location
• Also consider traveling in the off-season
• Choose the driver wisely, it will be more cost-effective
• Save money and travel green: choose an electric or hybrid vehicle.

Despite the challenges faced in the industry, traveling with a rental car has never been more in demand. There is nothing like having the choice of the best vehicle available, with an endless range of benefits. In addition, our Hertz experts are always happy to provide you with detailed information and travel advice. What are you waiting for? Book with Hertz today and discover America without strings attached.