Holiday Travel Surge Fuels Skyrocketing Rental Car Demand
As the holiday season approaches, rental car demand is reaching unprecedented levels across the United States. Cities such as Denver, Las Vegas, Los Angeles, Miami, Oahu, Orlando, Phoenix, and Tampa are seeing record-breaking interest from travelers, according to AAA and its rental partner, Hertz. With millions of families and tourists planning holiday trips, experts advise booking early to avoid last-minute disappointments.
Top Destinations for Holiday Rental Cars
The holiday period, from mid-December through New Year’s, is traditionally one of the busiest times of the year for rental cars. Popular U.S. destinations experiencing the highest demand include:
- Denver: Known for its winter sports and access to the Rocky Mountains, Denver attracts skiers and adventure seekers who need vehicles to explore nearby resorts and scenic locations.
- Las Vegas: The city’s dazzling holiday displays, world-class shopping, and New Year’s celebrations make it a hotspot for visitors needing transportation to explore beyond the Strip.
- Los Angeles: With its mild winter weather and iconic attractions, LA is a magnet for tourists. Rental cars are essential for navigating the sprawling city and nearby destinations.
- Miami: Miami’s vibrant nightlife, cultural attractions, and proximity to outdoor adventures like the Everglades drive significant rental car demand.
- Oahu: Travelers to this Hawaiian island often rent cars to explore stunning beaches, historical landmarks like Pearl Harbor, and lush hiking trails.
- Orlando: Home to Walt Disney World, Universal Studios, and other famous theme parks, Orlando sees families flocking to the area, with rental cars providing a convenient way to travel between attractions.
- Phoenix: With warm winter weather and proximity to the Grand Canyon and Sedona, Phoenix appeals to those seeking outdoor adventures and relaxation.
- Tampa: Tampa’s cultural activities, sports events, and Gulf Coast beaches make it a family-friendly destination, driving up rental car needs.
Peak Travel Days for Car Rentals
The busiest rental car pick-up days are expected to fall on Friday, December 20, and Saturday, December 21, as families begin their holiday vacations. Rental counters at major airports and city locations will be bustling, with longer wait times anticipated.
For car returns, the weekend after Christmas and Monday, December 30, will be the peak days as travelers wrap up their holiday plans. Airports, in particular, will experience heavy crowds, so travelers are encouraged to plan their returns early in the day to avoid delays.
Rising Rental Car Costs
Demand during the holiday season is pushing rental car prices higher, especially in high-traffic cities. The average rental period during the holidays lasts about one week, aligning with typical vacation durations. Families often prefer larger vehicles, such as SUVs and minivans, which are in high demand.
For those heading to winter destinations, four-wheel-drive or all-wheel-drive vehicles are popular for navigating snowy or icy conditions, but these options may come at a premium.
Tips for a Stress-Free Rental Experience
With rental car demand at an all-time high, these tips can help travelers avoid hassles and secure their vehicles:
- Book Early: Reserve your rental car as soon as your travel plans are finalized to lock in the best rates and ensure availability.
- Consider Off-Airport Locations: Rentals from locations outside airports often have lower rates and shorter wait times.
- Be Aware of Fees: Review your rental agreement carefully for potential additional charges, such as extra driver fees or insurance costs.
- Plan for Crowds: Peak days for pick-ups and returns will be busy. Arrive early to avoid delays at rental counters.
- Inspect the Vehicle: Before driving off, check the car for any existing damage and report it to the rental company to avoid being held responsible later.
What’s Driving the Demand?
Several factors contribute to this year’s heightened demand for rental cars:
- Record Travel Numbers: With holiday travel expected to hit new highs in 2025, the sheer volume of travelers is increasing competition for rental cars.
- Holiday Traditions: Families and vacationers flock to warm-weather destinations like Florida and Hawaii or head to cold-weather cities for winter sports, boosting demand in these areas.
- Convenience: Rental cars offer flexibility and freedom to explore beyond the limits of public transportation, especially in sprawling cities like Los Angeles and Orlando.
A Bright Outlook for Holiday Travelers
Despite the challenges of securing a rental car during peak holiday times, proper planning can make all the difference. With advanced bookings and strategic planning, travelers can enjoy smooth transportation as they explore some of the nation’s top destinations.
Whether you’re headed to the sunny beaches of Miami, the scenic mountains of Denver, or the vibrant streets of Las Vegas, a little preparation will ensure you can hit the road with ease and enjoy a memorable holiday season.
