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Rental car shortage caused by pandemic, Alberta Motor Association says

High demand and little supply have created a rental car shortage and its because of the pandemic, the Alberta Motor Association says.

Fleets diminished by lack of demand now short of vehicles as restrictions loosen, travel resumes

From economy cars to SUVs, rental vehicles are unavailable at most locations and car rental operators are jacking up rates amid the tight supply. (Stephane Mahe/Reuters)

High demand and little supply have created a rental car shortage in Alberta andindustry experts say it's because of the pandemic.

Craig Markin experienced it first hand. He hadheard from friends travelling to Hawaii that rental cars were either hard to come by or extremely expensive.

However, he hardly expected to experience the same issue while visiting family in Edmonton.

"[At first] I was like, well, that's Hawaii. That's sort of more of a tourist destination everyone around the world is going to," Markin told the Calgary Eyeopener on Thursday.

"So I go on about a week before and look in Edmonton and absolutely no cars are available anywhere in the city."

Markin said he has been relying on Ubers, cabs and friends to drive him around during his trip to Alberta, and according to Roland Van Meurs with the Alberta Motor Association, this wasn't a case of bad luck.

"As long as COVID was lasting, a lot of the car rentals had to sell a good chunk of their fleet, just from a finance perspective," Van Meurs said.

"[Now] there is not a lot to be tapped. It's pretty frightening."

Double to triple the price

The car rental shortage started in the United Statesand Canada when nearly all travel was halted at the outset of COVID-19 lockdowns and travel restrictions.

Car rental reservations plummeted, prompting companies to downsize fleets and lay off workers.

But now, the situation has changedand as restrictions loosen, travel resumesand demand returns, rental car companies with diminished fleetsare now struggling to keep up.

And from economy cars to SUVs, Van Meurs said AMA's data is showingthat no rental vehicles are available and car rental operators are hiking up rates amid the tight supply.

"We've seen anything from double to triple the price," Van Meurs said.

"And, you know, we anticipate that will probably remain for the rest of the summer."

'At least you know you'll have a car'

Prices will likely fall as fleets are replenished, but losses need to be recouped to do that, he said.

As for what people can do to ensure they get a car rental, he suggested making bookings "as far in advance as you possibly can" up totwo months out.

"That way, at least you know you'll have a car," he said.

Van Meursalsorecommended customers take some extra stepsto ensure they aren't left in the lurch,such as calling the day before going to pick it upand printing out confirmation information to bring.

"You don't want another scene of the movie Planes, Trains and Automobiles, that's for sure," he said.


With files from the Calgary Eyeopener, Brett Bundale and The Canadian Press.