Rising Demand In Vancouver’s Tourism Sector Leads To Hotel Shortages And Increased Car Rental Prices: Read More About It Now

Published on July 22, 2025

Vancouver 2025 Vancouver is on the up as a tourist destination in 2025 – there is an invasion of visitors widening the eyes of the rest of Canada, the U.S. and the world. The boom in tourism is delivering both a good economic shot in the arm and massive challenges for local travel operators. A major battle is the room shortage, driving up hotel prices and demand for car rentals in the city, and it is getting more and more difficult for out-of-towners ( or not so out-of-towners) to get travel and stay in the city of Sin.

As Vancouver’s tourism industry recovers, hotel occupancy rates are climbing even higher than in previous years, hovering around 80 per cent – or even more so – during peak periods. While that’s a good sign for the health of the tourism industry, it’s also causing a bottleneck effect that is making accommodations nearly impossible to book. And the surge in prices are also making it hard for travelers to find budget accommodations.

The Growing Demand for Hotel Rooms in Vancouver

Vancouver increasingly one of the world’s most popular places to visit Whether from the U.S., Australia, Germany, the UK, or elsewhere in Canada, people are coming in droves to visit Vancouver. Most of the influx of travelers can be attributed to a mixture of reasons: the attractiveness of Vancouver as a global city for business, leisure and MICE (Meetings, Incentives, Conferences and Exhibitions). Upcoming events such as the 2025 UEFA Women’s Euro finals in Switzerland and the Tour de France bike race, along with other high-profile gatherings, are expected to generate a large number of foreign visitors.

Hotel supply in Vancouver has not kept pace to the growing demand for rooms. The city has not opened hotel rooms at the same clip as competing cities. In the meantime, Vancouver’s hotel stock has remained virtually unchanged from 2002. Therefore, the city has a significant hotel undercapacity problem with demand outpacing supply. It’s a problem that city officials are working to cure, but with development and construction schedules years long, the lack of units will be felt for some time.

Combined with the increase in tourism, this shortage of supply has pushed up Vancouver accommodation prices. Hotel rooms are getting progressively more expensive — particularly in the summer and fall, when tourists flock to the country. People who wanted to spend less are finding that such rooms are harder to come by, forcing them to plan further in advance or pay more for a last-minute booking.

Car Rental Demand Soars in Vancouver

The demand for car rentals in Vancouver is also experiencing significant growth, with major companies like Enterprise Rent-A-Car, National Car Rental, and Alamo reporting higher-than-expected demand. The growing number of visitors to the city has led to an increase in the number of people requiring vehicles for local travel and sightseeing. This demand is especially noticeable during the summer months, when tourists flock to Vancouver for its vibrant culture, beautiful natural landscapes, and proximity to outdoor adventure destinations.

Due to the heightened demand, securing a rental car in Vancouver has become increasingly challenging. The process of booking a car requires early planning, and those who wait too long may find themselves unable to rent a vehicle, or facing inflated prices for the few cars that remain available. Rental companies are responding by optimizing their fleet sizes, but the high demand is still causing shortages, particularly for economy and mid-size vehicles.

Additionally, the trend toward environmentally friendly transportation is pushing more visitors to rent electric vehicles (EVs), which are in even higher demand. Car rental companies are working to meet this demand by expanding their fleets of electric vehicles, but availability can be limited, particularly in peak travel periods.

The Impact of Vancouver’s Tourism Boom on Local Infrastructure

The influx of tourists has put pressure on Vancouver’s local infrastructure in ways that are affecting not just hotels and car rentals, but also public transportation, dining, and sightseeing services. Public transportation systems are increasingly crowded, particularly buses and trains, which are serving both residents and visitors. This, combined with increased demand for taxis and ride-sharing services, has made getting around the city more challenging for both locals and tourists.

The city’s road systems have also been impacted by the increasing number of vehicles, with traffic congestion becoming a more frequent problem, particularly around popular tourist spots such as Stanley Park, Granville Island, and Vancouver Aquarium. This congestion can lead to delays and longer travel times for tourists who are already dealing with the stress of navigating a new city.

Despite these challenges, Vancouver’s tourism authorities are focused on long-term solutions. Destination Vancouver, the city’s tourism body, has recognized the need to improve hotel capacity and is working with developers to facilitate the creation of new hotel properties. However, this development process is slow, with some projects expected to take years to come to fruition.

Looking Forward: Vancouver’s Tourism Challenges and Solutions

The challenges Vancouver is currently facing—hotel shortages, rising prices, and high demand for car rentals—are reflective of a growing global trend in popular tourist destinations. Cities around the world, particularly those that are gateway destinations for international travelers, are experiencing similar issues. While Vancouver is seeing the benefits of a thriving tourism industry, it must also focus on sustainable growth to ensure that it can accommodate future visitors without compromising the experience of its residents and tourists alike.

For travelers planning to visit Vancouver, it’s recommended to book accommodations and car rentals well in advance to secure the best prices and availability. Flexibility with travel dates, as well as exploring alternative transportation options like biking or public transport, can also help mitigate some of the challenges posed by high demand.

The city’s tourism authorities are focused on expanding its capacity, and there are promising signs that more hotel developments are in the pipeline. However, quick fixes are unlikely, and it will take years for the infrastructure to catch up with demand.

Conclusion

With Vancouver tourism still hot, the city continues to struggle with not enough places to stay, growing prices and the explosion in demand for car rentals. These compellent factors forced the sojourners to schedule their journeys more consciously and book the services on time to avoid the non-availability. As the city focuses on increasing its hotel capacity and bolstering local infrastructure, traveling to the destination in the short term is likely to be costlier and more competitive when it comes to rentals.

The spike in tourism to Vancouver is a feather in the cap of the city’s economy, but it also serves as a stark reminder of the need to invest today for the demand of tomorrow. As the city grapples with an increasing demand on its public spaces, Vancouver has to thread the needle, meeting the needs of tourists and residents while providing lasting solutions.