Tourists using hire trucks when rental cars are short.

Rental cars have become increasingly expensive and difficult to book in hot tourist destinations like Hawaii. As a result, tourists have turned to booking U-Haul vehicles instead of rental cars.

https://www.businessinsider.com.au/hawaii-asks-tourists-to-stop-renting-u-haul-2021-6

Especially in regional areas of Australia, where smaller rental car companies sold their fleet during Covid Lock down to reduce cash flow, however they have been unable to restock their fleet to cater for the increase in demand.

There have been reports in Tasmania, of over $ 1,000 a day for an average car, so you can understand visitors renting hire trucks or motor campers, just to have a transport option.

When will this be back to normal?

Demand and Supply pressures determine, that its not until supply meets demand that price will meet normal levels, however with a brand value of price gouging while supply increases to that level, the location may gain reduced brand values.

As can be seen from the article, there is a high demand right around the world for hire cars, especially into regional areas of perceived safe locations.

There will be innovative solutions until supply increases and that may not be until into 2022, as vehicle manufacturers pick up manufacturing capacity after covid challenges.

A major challenge is the manufacture of computer chips, as these are critical in the operation of modern cars, a challenge that is for computers, game consoles and so many other competing manufactured goods.

We need to be careful, to look to an ordered medium term creation of a “new normal”, one that has an increased demand for visitors and hire car rentals, rather than short term gouging, that may impinge poorly onto other product in a location.

Tony Park