Car shortages

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Posted today in the Fort Lauderale paper
Rental car shortage frustrates tourists in Florida

By Tom Stieghorst
Business Writer
Posted October 12 2004

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There were no rental cars to be had when Suzanne MacDonald, a Denver advertising executive, arrived at Palm Beach International Airport last weekend.

MacDonald had flown in to attend a memorial service for her father in Jupiter. She canvassed the counter of every national car rental firm at the airport and came up empty.

Finally, an Avis employee took pity on her and steered her to a small independent car firm, she said. It's going to be expensive, she was warned.

She ended up in the very last car on the lot, a Porsche Boxster that rents for $199 a day.

"I had a great time, once I got over the initial shock and guilt," MacDonald said.

Across Florida, visitors are having trouble finding rental cars because of an unprecedented hurricane season. The shortage began after Hurricane Frances and is continuing, car companies said on Monday.

"The bottom line is if you're trying to book a car for this week, it's going to be tough," said Richard Broome, a vice president at Hertz Corp.'s national headquarters in Park Ridge, N.J.

Broome said the storms have thrown for a loop the normal patterns of supply and demand for this time of year. The result has been not enough cars in many locations to meet demand. Hertz and other car rental firms are scrambling to transfer cars to Florida.

"We're going to add several thousand cars to the fleet," said Broome, who declined to specify how many cars Hertz has in Florida now. "After this week, it should start to get better," he said.

Cendant Car Rental Group and Vanguard Car Rental confirmed their companies also had car shortages statewide.

"Many vehicles were damaged," said Alice Pereira, spokeswoman for Cendant, which owns the Avis and Budget brands. "We also are supplying vehicles to the Red Cross and Federal Emergency Management Agency," she said.

A spokesman for Vanguard, parent to the Alamo and National brands, said shortages were "across the board."

Rentals have declined in Florida since 2001 because people are taking more car trips in their own cars since the Sept. 11 terror attacks. But they remain vital for tourists who fly to the state, business people traveling from city to city, and those attending conventions and meetings.

Car companies said the problem started with a large number of cars driven out of state in August and September by residents and visitors trying to get away from the hurricanes. Then demand after the hurricanes came back faster than forecast.

Fall is typically a slow season for rentals in Florida, coming between the busy family vacation period and the prime winter months. This year, however, many people are making a quick trip to Florida in the fall to assess conditions.

"We have a lot of activity from people who are checking up on their properties or their boats," Broome said.

The hurricanes also impeded the operation of railroads and rail yards, which are critical to new car delivery, said Vanguard spokesman Rahul Kalsi.

"All in all, we are beginning to see light at the end of the tunnel as we received many new cars on Oct. 6 and hundreds more through the end of the week," Kalsi said.

Broome said he didn't have any specific information on how the shortage has affected prices. A check of the Expedia.com website shows 14 "Florida beach air deals" listed on the first page, but no "Florida beach car deals" at all.

Tom Stieghorst can be reached at tstieghorst@sun-sentinel.com or at 305-810-5008.

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