2) Travel Restrictions: COVID-19 border closures and travel restrictions led to a drop in international tourism, decreasing the supply of rental cars available globally.
3) Semiconductor Chip Shortage: Disruptions in the semiconductor chip supply chain have affected the production of new cars and the availability of replacement components for existing vehicles. This has reduced the supply of rental cars and increased prices.
4) High Production Costs: The increasing cost of raw materials, transportation, and labor contributes to higher manufacturing and production expenses, leading to more expensive rental rates.
5) Inflation and Supply Chain Issues: General inflationary pressures and rising expenses in various economic sectors, including the car rental industry, have driven up costs. Supply chain disruptions further affect the industry.
6) Limited Competition: Consolidation within the car rental industry, with fewer major players, has reduced competition and allowed rental companies to increase rates without significant market resistance.
7) Seasonal Demand: Specific times of the year, like summer and holidays, can experience higher demand for car rentals, leading to fluctuations in prices.
