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San Diego car rental business struggles as tourism slows

San Diego car rental business struggles as tourism slows
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KEARNY MESA, Calif. — A family-owned car rental business in Kearny Mesa is feeling the impact of slower tourism this summer, forcing them to pivot their business strategy to survive.

Long Term Car Rental, which has operated for 20 years with a fleet of 100 vehicles, currently has 30 cars sitting unused in their lot – an unusual sight for owner Emil Sultanov.

"People usually reserve cars 3 to 4 months ahead of time, and our fleet is completely sold out," Sultanov said.

But this summer has been different. The business, which typically relies on tourists and international visitors, has seen a significant decline.

"International students and international engineers that come here on visas are nowhere to be found. They're not calling, they're not reserving cars so people we service for the past 10 years, we're not seeing them this year," Sultanov said.

According to the San Diego Tourism Authority, projections for the year have been flat compared to past years of growth.

The slowdown has hit Long Term Car Rental's bottom line hard. Sultanov reports that summer tourism typically generates enough profit to sustain the business throughout the year.

"Our profit is down about 35% this year. In numbers, so that's a significant drop, generally it's an increase through the years," Sultanov said.

The company has been forced to shift its marketing strategy.

"We've shifted our marketing from international and visitors in general from tourism to locals, so local companies and local San Diego residents that are in between cars or need an extra car," Sultanov said.

While larger rental companies like Enterprise and Hertz can weather the storm due to their presence in multiple markets, small businesses like Long Term Car Rental depend heavily on community support.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.