Hawaii Car Rental Prices Skyrocket, Squeezing Winter Travelers

HONOLULU, HI – December 18, 2025 – Travelers dreaming of a winter escape to the Hawaiian islands may face a harsh reality at the rental car counter. A new survey has identified Hawaii as the epicenter of the nation's most expensive car rental market this winter, with Kona International Airport on the Big Island leading the country at a staggering average of $127 per day for the most affordable vehicle.

The findings, released by travel comparison site CheapCarRental.com, paint a stark picture for vacation budgets. The report, which analyzed prices at 100 major U.S. airports for the period from December 2025 through February 2026, shows a significant pricing disparity between the Aloha State and the rest of the country. The national average daily rate sits at a more modest $62.25, making the cost to rent a car in Kona more than double the norm.

Paradise Comes at a Premium

Hawaii's dominance on the list of costly destinations is undeniable. Following Kona (KOA), Kahului Airport (OGG) on Maui secured the second-most expensive spot with an average daily rate of $104. Lihue Airport (LIH) on Kauai also landed in the top ten, ranking seventh at $79 per day. By contrast, Honolulu's Daniel K. Inouye International Airport (HNL) appeared more moderate, ranking 43rd with a daily average of $62, closely aligned with the national average.

The financial strain intensifies dramatically during the peak Christmas travel season. The survey highlights a massive surge in prices between December 21 and 26, when the national average climbs to $84 per day. For Hawaiian destinations, the increase is far more pronounced. Travelers heading to Lihue will see rates jump by an astonishing 187% compared to the standard winter price. At Kahului, the holiday premium is 148%, while rates at both Kona and Honolulu airports are expected to nearly double, pushing daily costs well beyond the already high baseline.

Interestingly, the report notes that this winter pricing, while high, is still more than 17% lower than the rates seen during the summer months. This seasonal inversion is unique to Hawaii, which often becomes one of the more affordable rental destinations during the summer, highlighting the intense demand concentrated in the winter escape season.

A Perfect Storm of Scarcity and Demand

The exorbitant prices are not arbitrary; they are the result of a complex interplay of economic forces that have created a "perfect storm" in Hawaii's rental market. The roots of the problem extend back to the early days of the pandemic. As tourism ground to a halt in 2020, rental companies were forced to sell off huge portions of their vehicle fleets to stay afloat. Images of thousands of idle rental cars filling Aloha Stadium's parking lot became a symbol of the industry's crisis.

When travel demand rebounded with unexpected ferocity, these companies found themselves unable to replenish their fleets quickly enough. Global semiconductor chip shortages and other supply chain disruptions have hampered new car production for years, making it difficult and expensive to acquire new vehicles. This fundamental imbalance—a severely limited supply of cars clashing with a tidal wave of returning tourists—is the primary driver of the price hikes.

"You have a captive market on an island with a finite number of vehicles," noted one travel industry analyst. "When demand outstrips that finite supply, prices have nowhere to go but up."

Logistics further complicate the situation. Unlike mainland locations where cars can be driven between cities to meet demand, every vehicle on a Hawaiian rental lot must be shipped across the Pacific Ocean. These substantial shipping costs, along with higher expenses for maintenance, parts, labor, and real estate, are inevitably passed on to the consumer.

Finally, a stack of local taxes and fees adds to the final bill. The state of Hawaii imposes a Rental Motor Vehicle Surcharge Tax of $5.50 per day, a Vehicle License Fee Recoupment of around $1.65 per day, and the state's General Excise Tax. Renting directly from the airport tacks on an additional Airport Concession Fee of over 11%, significantly inflating the price before a driver ever turns the key.

Navigating the Rental Gauntlet

For travelers determined to experience Hawaii without breaking the bank, navigating the car rental market requires strategy and flexibility. While the sticker shock is real, experts suggest several ways to mitigate the cost.

The conventional wisdom of booking far in advance holds particularly true for peak holiday periods. However, some data suggests that prices can fluctuate, and last-minute deals sometimes appear during non-peak times. A savvy approach is to book a reservation with free cancellation early on and then monitor prices as the travel date approaches, rebooking if a better deal emerges. Using price comparison websites is essential to survey the entire market.

Travelers should also consider looking beyond the airport. Off-airport rental locations often have lower overhead and are not subject to the steep airport concession fees, which can result in significant savings. It may require a short taxi or rideshare trip, but the cost can be well worth it.

Once a car is booked, avoiding ancillary fees is key. Many personal auto insurance policies and credit card benefits include rental car coverage, making the expensive collision damage waivers offered at the counter redundant. Using a smartphone for GPS and refueling the car before returning it can also prevent hefty add-on charges.

Perhaps the most effective cost-saving measure is to reconsider the need for a car altogether. On Oahu, Honolulu’s award-winning public transit system, "TheBus," and its new "Skyline" rail system offer extensive and affordable ways to explore the island. In walkable areas like Waikiki, a car can be more of a costly inconvenience than a necessity, with high daily parking fees at hotels. While public transport is less comprehensive on the neighbor islands, shuttle services, rideshares, and taxis can fill the gaps for shorter trips or airport transfers. In recent years, some tourists have even turned to unconventional solutions like renting U-Haul trucks during periods of extreme shortages, a testament to the challenging rental landscape. By carefully assessing their itinerary and exploring all transportation options, visitors can still enjoy the magic of the islands without letting car rental costs derail their dream vacation.