RVezy co-founders Mike McNaught, left, and Will Thompson, in Ottawa, on May 19, 2021. McNaught says his company saw a 20% increase in domestic and international bookings within Canada, as well as a 327% spike in American residents renting an RV in Canada.Ashley Fraser/Ashley Fraser
Canadians looking to travel closer to home might need to act fast – some regions are seeing soaring demand for rental vehicles with both patriotism and domestic travel on the rise.
The share of searches for car rentals in Canada’s coastal and mountain cities on travel search engine Kayak for the January-to-March period has jumped as much as 20 per cent over last year. RV rental and camper van companies are also grappling with tight supply as demand has spiked more than 31 per cent for some businesses.
As the United States continues to wage a global trade war, more Canadians have been dodging travel stateside and opting to explore their own country’s vast backyard. Flight Centre Canada reported a 40-per-cent drop in airline and travel bookings to the U.S. in February, compared with a year earlier.
But the rising appeal of domestic travel is also presenting challenges for car rental businesses trying to keep up with demand.
“We’re going to have a significant supply constraint,” said Michael McNaught, the founder, president and chief executive of RVezy, a Canadian-owned RV rental marketplace that offers bookings in Canada and the U.S.
His company saw a 20-per-cent increase in domestic and international bookings within Canada, as well as a 327-per-cent spike in American residents renting an RV in Canada.
Despite having around 7,000 RVs available for booking in Canada, the business is already bumping up against supply limits, and far earlier in the season than expected, Mr. McNaught said.
Normally, he said, “it starts getting limited at the end of June, and we’re already seeing signs of many areas across Canada seeing limited supply.”
Traditional auto rentals are also showing signs of increasing demand. Kayak reports that the share of searches for rentals in Vancouver, Kelowna, B.C., and Halifax has increased for each between 15 per cent and 20 per cent, while Montreal saw a smaller 5-per-cent gain.
“Halifax and Kelowna have made the biggest gains in share of searches compared to 2024,” Kayak spokesperson Kayla DeLoache said in an e-mail. The growth matches some trends in the company’s flight data as well. While big cities such as Vancouver and Toronto are still the most popular Canadian flight destinations over all, smaller centres such as Quebec City and Regina have made the biggest gains in search share compared with 2024.
“There’s a strong interest to travel at home and to do your bit to support local communities, local businesses, while still having a great getaway, where your dollar is worth a dollar,” said Allison Blouin, national manager of customer experience and communications at Fraserway RV, a national RV dealer and rental provider.
Fraserway reports that its domestic bookings have surged 31 per cent.
Jim Seethram, co-owner of Squirrel Vans.Supplied
The growth in demand may not just be about patriotism. Jaclyn Leboldus and Jim Seethram, co-owners of Alberta-based Squirrel Vans, hear from travellers doing their best to stretch their dollar amid growing economic uncertainty.
Their camper vans – often bound for glamping, a style of travel whose name combines the words “glamorous” and “camping,” in Jasper or Banff – go for between $250 and $350 a night during peak summer months and are equipped with a kitchenette, bed and shower.
In comparison, a short-term or hotel rental during the summer in either of those locations would set travellers back between $261 and $750, according to March data from AirDNA.
Ms. Leboldus said the company has seen a 50-per-cent spike in bookings compared with last year. “And we haven’t hit summer yet – at this rate, we’re going to bump up against capacity,” she said.
Still, in some parts of Canada, car rental providers say strains on the supply side are a bigger concern than soaring demand.
Dhar Josh, the owner-operator of Island Rent-a-Car in Victoria, said the number of renters has somewhat declined in recent years as tourists face economic strain. “The prices have been so high for hotels or rentals that people have opted not to come to Victoria because it’s so expensive,” he said.
With rental companies cutting down on inventory amid declining demand in recent years, any spikes today will result in travellers struggling to find a vehicle, he said.
Despite short-term challenges in keeping up with demand, Mr. McNaught said the problem is over all a good one for business.
He cited 2023 data from Recreation Vehicle Dealers Association of Canada, showing the country’s RV industry having a total estimated impact of $12-billion in added value to the economy.
