Auto Rental News
MenuMENU
SearchSEARCH

Rental Car Prices Surge in High-Demand Tourist Areas

With travel booming in warm-weather destinations and a shortage of rental vehicles due to the pandemic, some travelers are facing rental prices of more than $300 a day – or up to $500 a day in certain high-demand areas.

April 14, 2021
Rental Car Prices Surge in High-Demand Tourist Areas

Warm weather and more vaccinations are increasing tourism and car rental demand. 

Photo via George Royan/Wikimedia Commons.

3 min to read


As more Americans are getting vaccinated and starting to travel again, many travelers are facing a rental car shortage and accompanying sticker shock at the daily rates. The national media is taking notice.

Multiple news reports note that rental companies sold a big portion of their fleets to keep their businesses afloat during the pandemic, and they’re still being cautious about increasing their staff and vehicles.

Ad Loading...

"The rental car companies basically went into survival mode," Jonathan Weinberg, founder and CEO of autoslash.com, told ABC7. "Their business was down about 90% and they had to sell off as many cars as they could. The demand came roaring back, and the rental car companies didn't have enough vehicles to satisfy the demand.”

Rental car prices have increased 30% nationally and as high as 300% in some places, according to a report by the New York Post.

Currently, warm-weather destinations like Florida, Hawaii, California, Texas, and Arizona are seeing the greatest demand and the highest prices.

A survey of car rental companies showed daily fees for modest vehicles in high-demand areas as more than $300 a day, while some especially affected regions — like the Gulf Coast, southern California, Florida, and the Carolinas — saw fees more than $500 a day in March, according to a report by Auto Week. 

At the start of 2021, many rental car companies moved their inventory to high-travel spots like Florida to help serve travelers in the spring, but even the increase in vehicles fell short in certain areas.

Ad Loading...

One area is Florida’s Tampa-St. Petersburg region. Rental rates are hitting as high as $489 a day for weekend rentals from Tampa airport, according to a report by the Orlando Sentinel.

“As you get into March and April, people start to head back north,” Weinberg told the Orlando Sentinel. “Eventually the demand is going to turn and it’s going to happen very quickly.”

Rental companies are looking to add more vehicles back to their fleets, but there have been challenges with buying new cars. Several automobile factories shut down at the beginning of the pandemic, according to the Orlando Sentinel. And there is a global shortage of microchips due to the pandemic and the ice storm in Texas that shut down manufacturing. These chips are needed in new cars, which has limited new inventory.

Due to the lack of rental cars, peer-to-peer carsharing companies like Turo are seeing an increase in business. “Our hosts are telling us that their businesses are booming due to a surge in travel and sky-high rental car prices,” Turo CEO Andre Haddad wrote in a statement to the Orlando Sentinel.

Enterprise Holdings spokeswoman Lisa Martini said that she anticipates the increase in car rentals to continue in the coming months.

Ad Loading...

“We are working closely with our manufacturing partners to continue to add vehicles to our fleet to meet the demand,” Martini told The Washington Post. “We also are leveraging our large network of neighborhood and airport locations to move vehicles where possible to support regional spikes in demand.”

More Rental Operations

display of Turo's FSD homepage
Rental Operations•by Chris Brown•October 28, 2026

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals

The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.

Read More →
Two identical rental cars, two different prices
Rental Operations•Cover Story•October 26, 2026

How Rental Operators Can Navigate Personalized Pricing Rules

As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.

Read More →
a laptop shows different connectivity paths for car rental supply
Rental Operations•October 23, 2026

Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars

As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.

Read More →
Ad Loading...
thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Ad Loading...
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
Ad Loading...