What's the deal with car rental agencies?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

We average 6 trips per year and renting cars with just about every trip. Most of the time I can find reasonable rates 6 to 9 months out and, if I keep shoping often find better rates until I'm around $100 to $150 for a week in an economy to mid-size car.

Lately, everything is in the $350 range for a week's rental. Haven't they heard there's a recession going on and people are traveling less? Do they think that when times are hard and people are spending less on the extra's that they're going to pay out a couple hundred dollars more than what they've paid in the past?

I'm not certain why they've taken this path but it's forcing me to rethink my travel plans and whether or not I want to rent a car when we travel. Perhaps they're tired of people who rent several cars, keep the lowest price car but fail to cancel the remaining resrvations. Perhaps their tired of peopel reserving several months out only to cancel when they find a better deal. Whatever it is, it's a game I'm not in favor of. I will be more in favor of using Priceline to rent one of those cars that's sitting idle because their fee's are to high to book direct. To me, it's just not worth renting a car for a week if it's going to cost almost as much as it does to fly to our destination.

And yes, I watch the rental sites religously. So far it's been a lot of the same with rates high enough to make me cringe. I'm currently waiting to see when/if the prices drop for a reservation I have for next month. March 6th is just around the corner and so far, prices are still in the $350 range. I presently have a car reserved for $170 which, when I booked it, seemed on the high end of normal. I was expecting to get it down to $140 or $150 for the week.

[jackio Gold Contributor Find all posts View Profile Close jackio]

I have found the same thing. I was holding out for a better rate for my last vacation, waiting until almost the last minute. I ended up with a higher rate than the one I didn't want in the months prior.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

I have noticed that as well. My April dates in SCal are still pretty outrageous. I have done well with Priceline and I guess I will have to go that route soon because I'm not paying $52/day for an economy car.

Worse case I'll have my dad pick us up and use his car for a week.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

For the heck of it, I checked Hotwire to see what they had to offer. Not bad but, at $18.95 per day not really the savings I was looking for but savings I would accept if I didn't find anything better.

Well, I just found something better. I shot a low ball bid of $13/day for a compact car on Priceline or, $126 total for the week. It was rejected. I decided to up the bid to $15/day or $142.81 for the week and moved my class up to mid-size. That bid was accepted and I now have my rental with Hertz rather than Thrifty. My original booking was a "wild car" reservation, which is a mid-size or larger (read getting stuck with a PT Cruiser of mini-van most times) and was $170 before taxes and fee's. It was going to be over $200 for the week when all was said and done.

I had moved away from using Priceline and Hotwire because I could find deals almost as good and, would get to use our by-pass-the-line status of Blue Chip, Fastlane, Fastbreak or whatever that particular car companies promo was. Lately, Thrifty's Blue Chip has left me feeling more or less blue as it hasn't been much faster or much less hassle than those who have had to stand in line.

I guess it looks like I'll be back to shopping Hotwire and Priceline again for our car rental needs. Online booking direct when these companies are wanting $350/week for a car asking to much in these troubled economic times.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

For the heck of it, I checked Hotwire to see what they had to offer. Not bad but, at $18.95 per day not really the savings I was looking for but savings I would accept if I didn't find anything better.

Well, I just found something better. I shot a low ball bid of $13/day for a compact car on Priceline or, $126 total for the week. It was rejected. I decided to up the bid to $15/day or $142.81 for the week and moved my class up to mid-size. That bid was accepted and I now have my rental with Hertz rather than Thrifty. My original booking was a "wild car" reservation, which is a mid-size or larger (read getting stuck with a PT Cruiser of mini-van most times) and was $170 before taxes and fee's. It was going to be over $200 for the week when all was said and done.

I had moved away from using Priceline and Hotwire because I could find deals almost as good and, would get to use our by-pass-the-line status of Blue Chip, Fastlane, Fastbreak or whatever that particular car companies promo was. Lately, Thrifty's Blue Chip has left me feeling more or less blue as it hasn't been much faster or much less hassle than those who have had to stand in line.

I guess it looks like I'll be back to shopping Hotwire and Priceline again for our car rental needs. Online booking direct when these companies are wanting $350/week for a car asking to much in these troubled economic times.

I'm so glad you posted this! I started using Priceline again about 18 months ago. Can usually manage a mid-size for $16/day in SCal with them. So I don't get the 500 FF miles, big whoop.

I'm not paying better than $350/week for a car when my air was less than $300RT.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

I'm so glad you posted this! I started using Priceline again about 18 months ago. Can usually manage a mid-size for $16/day in SCal with them. So I don't get the 500 FF miles, big whoop.

I'm not paying better than $350/week for a car when my air was less than $300RT.

I guess I'll have to look for other ways to keep a couple of my FF milage accounts active. Right now the only one that might be in danger is my AA acount, which I have until Nov. to do something with. I have a couple of option for adding miles to that account, including 10,000 points on my Dinners Club card.

[bnoble Senior Member Find all posts View Profile Close bnoble]

The car agencies have been very good---perhaps too good---at trimming their fleet sizes. The last minute rates for Orlando next week (not a holiday week, mind you) are $400 for a mid-size.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Maybe the rental car agencies are dumping inventory and overshooting given the bad economy. If they are, that's good for the long term.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

The car agencies have been very good---perhaps too good---at trimming their fleet sizes. The last minute rates for Orlando next week (not a holiday week, mind you) are $400 for a mid-size.

Sure, if you go direct through the agency. But there still appears to be plenty of deals available through Hotwire and Priceline. If there's cars available through those two outlets, then their fleets can't be that small compared to the demand. I think there has to some other market force in play here or else the bidding for travel sites prices wouldn't be that far under the direct sites.

For instance, I just booked a mid-size through Priceline for $105 plus taxes or $142.61 total including taxes and fee. Booking direct the same car would run me $450 total if I booked today. For there to be that big of a difference there has to be something odd going on.

[bnoble Senior Member Find all posts View Profile Close bnoble]

I have an employer-negotiated rate that includes second driver and LDW for $300 for 8 days, and no waiting in line. Hotwire for the same period was $250, but after waiting in a line, not letting my wife drive, and relying on my credit card for insurance. It's not enough of a difference to quibble over, and I've checked rates nearly every day for the past four months. They haven't budged.

Unless you believe that the agencies are colluding in all of these markets with higher prices, or you believe demand has gone up, the only explanation left is that supply has gone down.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

I have an employer-negotiated rate that includes second driver and LDW for $300 for 8 days, and no waiting in line. Hotwire for the same period was $250, but after waiting in a line, not letting my wife drive, and relying on my credit card for insurance. It's not enough of a difference to quibble over, and I've checked rates nearly every day for the past four months. They haven't budged.

Unless you believe that the agencies are colluding in all of these markets with higher prices, or you believe demand has gone up, the only explanation left is that supply has gone down.

When you look at the underlying ownership of many of these companies, there really isn't as many choices as it might seem.

I'm not certain what's really going on. All I know is, up until this year I've never had an issue getting a reasonable rental rate. Usually around $150/week for a compact. If I shopped enough and got lucky I could sometimes find a car for $125 or maybe even a little less. But now, all I'm seeing are rates over $300 for the week. Yet, I can find cars at the same companies through Hotwire or Priceline for half that price.

Somethings different. It's anyone's guess what it might be. I know one thing for certain. I have no intention of renting a car for a week at the current rates. If enough people feel the same I guess they'll be able to lower their inventory a lot more.

[idahodude Senior Member Find all posts View Profile Close idahodude]

Could the automaker's be subsidizing the car rental agencies less? I believe they used to give their cars to agencies for at or below cost to help advertise their vehicles. With the tightening economy, I wonder if car companies are deciding this isn't an expense worth keeping.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

Thought I'd update this thread. My rental quotes thru the various sites have not budged. Still asking for ~ $350/week for a car in S Cal.

Hotwire quoted me $19/day.

This is what I just got thru Priceline with Hertz for a compact car:

Your Offer Price: $14.00 (per day)
Total Rental Days: 7 days(6 days and 23 hours)
Subtotal: $98.00
Taxes and Fees: $35.76
Total Charges: $133.76
Lowest Published Price: $330.85
Total Savings:* $197.09 (You saved 60%)

So I'm pleased with Priceline again. Hertz can keep the 500FF miles as they certainly aren't worth $200 to me.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

I guess I'll have to look for other ways to keep a couple of my FF milage accounts active. Right now the only one that might be in danger is my AA acount, which I have until Nov. to do something with. I have a couple of option for adding miles to that account, including 10,000 points on my Dinners Club card.

Doug, I keep the 4 famiy AA accounts alive' by using the AA Shopping link - it is to many stores u would shop at anyway...... flowers, JCPenney, Lands End, Home Depot.....

https://www.aadvantageeshopping.com/index.jsp

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Doug, I keep the 4 famiy AA accounts alive' by using the AA Shopping link - it is to many stores u would shop at anyway...... flowers, JCPenney, Lands End, Home Depot.....

https://www.aadvantageeshopping.com/index.jsp

I'd use it but, every time I try to sign up, it says my FF number isn't a real FF number.

EDIT: wait a minute, it was the iDine account where they wouldn't recognize my #. I'll give this online shopping a shot and see if that works.