The COVID-19 crisis has led to an explosion in rental car prices for a few reasons. One of the main reasons is that the demand for rental cars has increased significantly as people are avoiding public transportation and looking for alternative ways to travel. This increased demand has led to a shortage of rental cars, which in turn has driven up prices.
Another reason for the increase in rental car prices is that many rental car companies have reduced their fleet sizes due to financial constraints caused by the pandemic. This reduction in the number of cars available for rent has also contributed to the increase in prices.
Additionally, rental car companies are facing increased costs related to cleaning and sanitizing their vehicles, which are being passed on to consumers through higher rental rates. The added cost of providing personal protective equipment (PPE) for the employees and the increased cost of disinfectants also contribute to the price increase.
The decrease in travel and tourism also had a significant impact on the rental car industry, as many rental car companies rely on airport and hotel rentals for a significant portion of their revenue. With fewer people traveling and staying in hotels, rental car companies have had to rely more on the remaining demand, which has led to higher prices.
Finally, the uncertainty caused by the pandemic has led many people to cancel or postpone their travel plans, which has led to a significant drop in demand for rental cars. The rental car companies have had to adjust their prices to keep their businesses viable.
All these factors together have contributed to the explosion in rental car prices during the COVID-19 crisis.