LIHUE — Isolation, limited fleets, taxes and high demand make car rentals a rare commodity during the holidays on Kauai, and it is reflected in the prices and availability.
Consider it a minor miracle to get a car for a week or even a day between now and the second week of January. Without a cancellation, the availability is a matter of luck and timing — and be prepared to pay.
Calls to three car rental companies at the Lihue airport on Thursday resulted in zero availability with Dollar and Thrifty, and only a $199 per day rental with Alamo.
An off-airport rental associate said it is advisable when visiting to take a cab or shuttle to the hotel and rent a car off-airport.
“Guests can save up to $300 in fees, if they are staying a month at a time share,” the rental employee said.
There are only about three weeks per year when the visitor demand forces prices to rise significantly, the employee added. During the summer, the rates may be $175 to $300 a week and the day after Christmas through New Year’s Day it could run from $800 to $2,700 per week.
“You just have to book ahead when it comes to a holiday time,” the employee said.
For people who haven’t planned ahead, there is always Plan B — the used car rentals.
Dave Hoskings, general manager of Island Cars at the Lihue Industrial Park No. 2, said there were people crying at the airport this week because there were no available vehicles. They never considered that they wouldn’t be able to rent a car without a reservation, he said.
“We only raise our rates one time per year and that is between Dec. 18 and Jan. 8,” Hoskings said. “We need to charge more because we are being creative with ways to get more vehicles into our fleet during that time.”
Island Cars will have several vehicles available on a temporary basis. It uses cars from people who make their second cars available or while they are off-island, he said. Car rental companies run out of inventory during the holiday rush, and maybe one or two other times per year, so this is one way to meet demand without maintaining too much inventory year round.
Terri Hunter, an associate with Island Cars, said the normal rates start at $17.95 and increase to about $79.95 during this time of the year. Island Cars is sold out through Jan. 8, so Hunter advises customers to check daily for cancellations and in-between rental availability.
People, she said, don’t mind a 10-year-old car when there is nothing else available.
“It goes up with the demand but if someone calls early and reserves then they are locked in at the lower price,” Hunter said.
A manager at Island Cars in Lihue said they don’t adjust their prices for the holidays and keep rates at $20 per day year-round. Their fleet of 38 used sedans is sold out through February.
The questions about licensing and other risks is a buyer-beware issue.
Dan Lauer, owner of Maui-based HawaiiCarRental.com, a booking agency for major car rental companies based in Maui, said Christmas and New Year’s are the two busiest weeks of the year and the fleet of rental cars on all islands are that much more in demand.
“Everybody wants to go to Hawaii in the winter time and have a couple of weeks away from the freezing weather,” Lauer said. “What is better than warm weather for time off from work at the holidays?”
Lauer said tour operators are provided blocks of rentals. The prices go up on the main retail site when they start selling out. They have specific block allotments for holidays that are held until the closeout notices are submitted three to four weeks out, he added.
“Often, by mid-year some of the companies sell out and it’s hard to find a car at a reasonable rate,” Lauer said.
The further in advance a customer makes a car reservation the better the rate during a holiday season.
On the Mainland, rental companies can shift their fleets around more easily than in Hawaii. The companies bring in more cars when they anticipate a large season and refer to economic indicators when replenishing their fleets, he added.
“To my understanding, right now the fleets are higher in numbers than in past years,” he said.
Taxes and fees are other factors in driving prices even higher than rental rates.
The state of Hawaii assesses fixed and percentage rate taxes on car rentals to include a state general excise tax of 4.17 percent. There is also a daily $7.50 surcharge at the airport or $3 off airport, and a vehicle registration fee of 40 to 90 cents per day on Kauai, depending on the type of vehicle.
When renting from airport locations there is an additional concession recovery fee of 11.11 percent and a customer facility charge of $4.50 per day.
