Why are car rental prices going up?

[FL Guy]

Planning to rent a vehicle in May at SFO. I'd looked about a month ago and prices for the rental period, as of yesterday, had jumped about $175 over what it was a month ago. I know prices of everything fuel-related are going up because of the war, but why rental cars that much of an increase in a month?

 

[TolmiePeak]

Planning to rent a vehicle in May at SFO. I'd looked about a month ago and prices for the rental period, as of yesterday, had jumped about $175 over what it was a month ago. I know prices of everything fuel-related are going up because of the war, but why rental cars that much of an increase in a month?

Demand?

 

[BingoBangoBongo]

On almost every trip I plan, I get a quote thru autoslash once I locked in flights and then track that rental through them. I typically get 2-5 notifications that they have found a lower rate. I recently got access to a corporate rate that I can use thru Avis/Budget that sometimes has lower rates, but not always. I even booked a prepaid rate recently for my wife that allowed cancellation 48 hours ahead.

 

[pedro47]

Supply and demand, insurance and gas prices.

 

[andre10056]

Planning to rent a vehicle in May at SFO. I'd looked about a month ago and prices for the rental period, as of yesterday, had jumped about $175 over what it was a month ago. I know prices of everything fuel-related are going up because of the war, but why rental cars that much of an increase in a month?

You looked when you were three months earlier than your trip. You looked again when you are two months earlier than your trip. Prices are up.

The closer you get to your trip, the higher rates will be. Same thing with flights. I'm sure they have this worked to a science, but one speculation on my part is that, when you look three months prior to your trip, the probability that you're going to actually go on that trip may be a relatively lower percentage. Hence, they need to entice you with lower rates. Two months prior to your trip, you're more likely to go and now they can charge higher prices.

And/or perhaps it's just an inventory control thing. They want to lock in as many people as possible three months prior in order for there to be a higher likelihood that their inventory will be taken entirely up three months later. But, having successfully locked in a good number of early birds, that now ALLOWS them to charge higher prices to the remaining people that they need to take up their inventory.

It's all a matter of historical renter patterns. Their internal database guides them in pricing.

 

[easyrider]

On almost every trip I plan, I get a quote thru autoslash once I locked in flights and then track that rental through them. I typically get 2-5 notifications that they have found a lower rate. I recently got access to a corporate rate that I can use thru Avis/Budget that sometimes has lower rates, but not always. I even booked a prepaid rate recently for my wife that allowed cancellation 48 hours ahead.

For most destinations in the USA I think Auto slash works best as far out as possible. Once when our connecting flight was cancelled, Auto slash came through last minute and we made it home.

Bill

 

[lynne]

To add to the issue:

The state of Hawaiʻi Office of Consumer Protection received confirmation from ACE Rent A Car Maui that the company has ‘ceased doing business on Maui and has no intention of honoring existing bookings.’

Travelers who have existing reservations with this company should prepare for ‘no shuttle service available and no personnel to assist them upon their arrival at Kahului Airport (OGG).’

 

[jp10558]

On top of the regular seeing if they can get more money from you, I'm also starting to think any time there's any big event in the news companies are trying out the "because we can" price increases and seeing if people "buy" that it's because of the event, or if they have too much of a drop off in sales.

 

[Luanne]

For most destinations in the USA I think Auto slash works best as far out as possible. Once when our connecting flight was cancelled, Auto slash came through last minute and we made it home.

Bill

AutoSlash worked great for me for quite a few years. But not for the last two.

 

[easyrider]

AutoSlash worked great for me for quite a few years. But not for the last two.

It hasn't worked very well for us with anywhere Hawaii.

Bill

 

[ScoopKona]

Sadly, the answer is, "Americans don't have a lot of choices when it comes to international travel." Sure, we're still free to go almost anywhere. But who is going to Egypt this year? Dubai? Who wants to go to Denmark? Or Canada? If we take all the countries we've stabbed in the back off the the travel list, that doesn't leave much.

So Americans are traveling domestically. And the corporations are profiteering. Because they can. Nobody is going to stop them.

I'm not going ANYWHERE. I have zero trust in any federal agency right now. The FAA? Clown shoes. I'm not getting on a plane until there's a change in management. Not enough air traffic controllers to go around. TSA agents calling in sick because they aren't getting paid. Thanks, no.

The USDA has been clown shoes for ages. I've found a way to circumvent them. FCC? FDA? CDC? DOD? DOJ? Nope all around.

 

[slip]

It hasn't worked very well for us with anywhere Hawaii.

Bill

I only had luck with it one time about 12 years ago. No luck since then. I keep entering information in but nothing for years. I'll probably stop bothering to do it. Lol

 

[andre10056]

Sadly, the answer is, "Americans don't have a lot of choices when it comes to international travel." Sure, we're still free to go almost anywhere. But who is going to Egypt this year? Dubai? Who wants to go to Denmark? Or Canada? If we take all the countries we've stabbed in the back off the the travel list, that doesn't leave much.

So Americans are traveling domestically. And the corporations are profiteering. Because they can. Nobody is going to stop them.

I'm not going ANYWHERE. I have zero trust in any federal agency right now. The FAA? Clown shoes. I'm not getting on a plane until there's a change in management. Not enough air traffic controllers to go around. TSA agents calling in sick because they aren't getting paid. Thanks, no.

The USDA has been clown shoes for ages. I've found a way to circumvent them. FCC? FDA? CDC? DOD? DOJ? Nope all around.

I agree with your post 100%. But I'm not sure you meant to post it in a thread about car rentals.

 

[MOXJO7282]

I just track pricing with Costco travel and always end up with very good pricing. I will only use a company with some form of fastpass that allows you to go right to your vehicle and skip the counter, that exists in many airports. I'm not sure Autoslash uses a company that has that option, so I currently use Alamo or Budget and via Costco I always feel I get a good deal. I book very early, usually at 12 months and I'm always checking prices, practically daily and always seem follow the pricing down to its lowest point. I just saved $50 for a Maui rental in April.

 

[Hindsite]

Who wants to go to Denmark? Or Canada? If we take all the countries we've stabbed in the back off the the travel list, that doesn't leave much.

Living outside of the US I don't feel any malice to US Citizens and don't see it in fact as I travel about. Sure, don't go to places where bombs are dropping or that have a history of targeting tourists, that's not new and applies to anyone whatever their citizenship is.

The Danes are a sufficiently emotionally stable not to pick on individual tourists, just because of their nationality. No matter what your nationality if you behave sensibly you are welcome, if you don't then you are no more welcome than you have ever been.

 

[mjm1]

I use Costco for most rentals and check prices occasionally. I just checked a couple of Hawaii rentals this morning and prices are a little higher than when I made reservations. So, I will keep checking and hope they come down.

 

[ScoopKona]

Living outside of the US I don't feel any malice to US Citizens and don't see it in fact as I travel about. Sure, don't go to places where bombs are dropping or that have a history of targeting tourists, that's not new and applies to anyone whatever their citizenship is.

The Danes are a sufficiently emotionally stable not to pick on individual tourists, just because of their nationality. No matter what your nationality if you behave sensibly you are welcome, if you don't then you are no more welcome than you have ever been.

I speak fluent German. Every time I've visited Germany I get an earful from Germans about what's happening in the US. This is normal since Jan. 2001. I don't know why they feel the need to vent at me. But they do. This happens almost every day of my trip. Sometimes multiple times each day. It's not as common in Italy or the UK (the other places we tend to go). But it happens. So I assume this is happening pretty-much everywhere.

Here in Hawaii, foreign tourism numbers have cratered. Overall visitor numbers are stable (but spending is down). Not wanting to deal with immigration and customs, Americans are voting with their feet and traveling to the nicer parts of the country. Friends who live in other nice areas of the country corroborate this. And all of us agree that Canadian visitors are sorely missed.

The other thing I'm seeing is there is almost always someone at the tiny little post office in my town getting a passport. I visit the post office almost daily. And everyone is getting their paperwork in order -- so they can leave if necessary. How do I know? "Nice! Where are you going?" The most common response is, "We're not going anywhere. Just want to make sure we have a passport. Just in case."

 

[easyrider]

Sadly, the answer is, "Americans don't have a lot of choices when it comes to international travel." Sure, we're still free to go almost anywhere. But who is going to Egypt this year? Dubai? Who wants to go to Denmark? Or Canada? If we take all the countries we've stabbed in the back off the the travel list, that doesn't leave much.

So Americans are traveling domestically. And the corporations are profiteering. Because they can. Nobody is going to stop them.

I'm not going ANYWHERE. I have zero trust in any federal agency right now. The FAA? Clown shoes. I'm not getting on a plane until there's a change in management. Not enough air traffic controllers to go around. TSA agents calling in sick because they aren't getting paid. Thanks, no.

The USDA has been clown shoes for ages. I've found a way to circumvent them. FCC? FDA? CDC? DOD? DOJ? Nope all around.

I'm going where-ever I want. I also feel welcome where ever I go.

Bill

 

[dioxide45]

Through consolidation there are really only three major car rental companies left. Before that there were the failures of the US auto manufacturers the rental agencies don't get as good a set of terms as they used to when buying cars. They really now just have to buy the cars and sell them themselves at the end of their rental life. We've been seeing it for years and I also think certain world events are leading some companies to just test out the waters to see if you will pay what they charge. I read an article that even with airfares up, people are still booking travel.