The Covid-19 pandemic has affected the whole world. But some parts of the world have been affected more than others. The economy of Hawaii has been devastated by the pandemic. Hawaii depends a lot on travel and tourism. With the lockdowns imposed all over the world and curbs on travel, the Hawaiian economy has gone for a toss. Especially hit were the Hawaii auto transport industry and car shipping to Hawaii.
The economy will eventually limp back to recovery with limited travel opening up. But will this come with an increased cost? Or will Hawaii see a decrease in travel costs to attract footfalls? Let us try to understand the after-effects of the pandemic on the Hawaii auto transport industry and car shipping to Hawaii.
The pandemic and subsequent lockdown put economies on hold. It also put relocation plans of people on the backburner. This negatively impacted the auto transport and car shipping industry in Hawaii. Now, as restrictions are eased and as travel and relocation are opening up, the industry is looking to make up for the lost time. Prices are low at the moment. But can the industry survive on these reduced rates? Will prices for auto transport and car shipping Hawaii increase or decrease after the pandemic? Time will tell. There are also a few factors that will affect pricing, as we will see below.
The fuel prices in Hawaii are already much higher than the mainland. This is because there is not much competition on the island to push prices down, and the demand is high. If fuel prices go up post-pandemic, this will negatively impact auto transport and car shipping in a big way.
On the other hand, in a bid to attract more numbers to visit Hawaii, the fuel prices may be kept in check or at least kept to pre-pandemic levels. This may benefit the auto transport and car shipping industries. It all depends on what the government decides.
As it is, people opting to travel now, after the pandemic, prefer driving rather than flying. Thus the auto transport industry should get a boost if the fuel prices are not exorbitant and kept in check.
Hawaii is trying to restart its economy by easing travel restrictions. They are open to visitors. But visitors need to have a valid and acceptable Covid-19 test uploaded before they travel to Hawaii. If not, they face a 10-day quarantine.
These restrictions will also deter travelers and negatively impact the auto transport industry.
As the pandemic scare subsides and as economies open up, Hawaii will benefit when travel restrictions are finally reduced or removed.
Many tour operators are rapidly reducing prices to attract more customers. This reduced pricing is the result of being in lockdown for so long without business. Will this reduced pricing continue after the pandemic? Or will the prices go back to pre-pandemic levels? Time will tell.
However, for some time at least, the cost of visiting Hawaii may go down. At least till the economies start tottering back to normality.
Besides travel restrictions, there are restrictions on the number of people who can visit a restaurant. Also, there are restrictions on the use of public spaces. In smaller places, people are opting for vacation rentals as compared to staying in hotels. Even the prices of a hotel stay are reduced to generate some business.
It remains to be seen whether or not the reduced pricing will continue after the economy has bounced back. Of course, this may take a long time to happen, but can businesses survive on the reduced pricing? If they cannot survive on the slashed rates, will they be forced to increase prices? Once again, time will tell.
With the pandemic hitting and the consequent lockdown, relocating to Hawaii has also come to a standstill. As restrictions are slowly lifted, the number of people relocating to Hawaii may slowly increase. This would benefit the auto transport and car shipping industry provided they can keep their prices in check.
At the moment car shippers will be falling over themselves to attract clients with slashed rates and other added benefits. But it remains to be seen if the prices increase, decrease, or remain static after the pandemic.
The Covid-19 pandemic and the resultant lockdown and travel restrictions have devasted economies worldwide. For the small Hawaiian islands which depend on travel and tourism, the pandemic has killed their economy. As the world limps back to normality, the real question is whether the post-pandemic scene will see travel costs increasing or decreasing in Hawaii. The answer is not simple or easy.