New Brunswick rental car business fights hard

Thursday, April 13, 2023

Last year, New Brunswick reached the levels witnessed before thepandemic; however, the province’s rental car businessfought hard, according to a new research by Statistics Canada.

The study said that tourism movement in the province became better swiftly. However, it is still 20 per cent less compared to 2019, prior to the COVID-19 pandemic.

In spite of a recovery in the number of tourists to New Brunswick, a lot of macroeconomic issuesaffected the speed and the degree of the revival for theproviders of tourism services, comprising the passenger car rentbusiness.

While price increases led to substantial price hikes for hotel rooms and restaurants, as per the study, the sharpestsurges in the province in the last two years were witnessed in thecar rental sector.

Within Canada, charges for rent of passenger vehicles went up byroughly 50 per cent since 2019, said the study. The cost burdenslinked with the upkeep and overhaul of current vehicles and the purchase of new vehicles have affected car rental trades.

The car rental business, found it hard to refill its recordssince businesses were still finding itdifficult to buy new vehicles.

As per a Statistics Canada research from British Columbia last year, rental vehicle convoys in that province were exhaustedthroughout the first year of the pandemic and are yet to return to the standardsprior to the pandemic.

In New Brunswick, car deficiencieshave brought asurge in non-traditional rental vehicle choices like peer-to-peer car sharing and hourly in place of everyday rentals.

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