HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Rental Car Gouging

Sat Jul 10, 2021, 06:25 PM

Rental Car Gouging

I think some rental car prices have exceeded 1000% of recent pre covid prices. Isn't that price gouging?

42 replies, 1923 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 42 replies Author Time Post
Reply Rental Car Gouging (Original post)
Prosper Jul 2021 OP
Treefrog Jul 2021 #1
Dream Girl Jul 2021 #5
Treefrog Jul 2021 #26
Post removed Jul 2021 #29
Treefrog Jul 2021 #34
NurseJackie Jul 2021 #40
Treefrog Jul 2021 #41
EYESORE 9001 Jul 2021 #10
Treefrog Jul 2021 #37
EYESORE 9001 Jul 2021 #38
Treefrog Jul 2021 #42
USALiberal Jul 2021 #15
Treefrog Jul 2021 #25
NurseJackie Jul 2021 #32
Treefrog Jul 2021 #33
Hekate Jul 2021 #2
AZSkiffyGeek Jul 2021 #3
ProfessorGAC Jul 2021 #4
bluecollar2 Jul 2021 #7
reACTIONary Jul 2021 #14
Dream Girl Jul 2021 #6
MerryHolidays Jul 2021 #8
left-of-center2012 Jul 2021 #9
VarryOn Jul 2021 #11
marmar Jul 2021 #12
Cairycat Jul 2021 #13
Prosper Jul 2021 #16
Treefrog Jul 2021 #27
Doremus Jul 2021 #17
Prosper Jul 2021 #18
KentuckyWoman Jul 2021 #19
SYFROYH Jul 2021 #20
Prosper Jul 2021 #22
SYFROYH Jul 2021 #23
appalachiablue Jul 2021 #21
sir pball Jul 2021 #28
appalachiablue Jul 2021 #30
sir pball Jul 2021 #31
appalachiablue Jul 2021 #39
roamer65 Jul 2021 #24
mainer Jul 2021 #35
obamanut2012 Jul 2021 #36

Response to Prosper (Original post)

Sat Jul 10, 2021, 06:32 PM

1. I have no clue what rental car prices usually are.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #1)

Sat Jul 10, 2021, 07:04 PM

5. Then there's need to respond.

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Dream Girl (Reply #5)

Mon Jul 12, 2021, 02:18 PM

26. So you posted, but have no interest in further informing those who show they'd like to

know more?

Hokay.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #26)


Response to Dream Girl (Reply #5)

Mon Jul 12, 2021, 02:46 PM

34. Okay, what in the world is your issue with me asking for more information ?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #34)

Mon Jul 12, 2021, 04:32 PM

40. It's highly unlikely that you'll get a response.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to NurseJackie (Reply #40)

Mon Jul 12, 2021, 05:08 PM

41. I see that now.

I still donít get the vitriol from several on my question. Iíve been housebound forever, and genuinely interested in travel info.

Thanks for your kindness.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #1)

Sat Jul 10, 2021, 07:40 PM

10. Good to know

Reply to this post

Back to top Alert abuse Link here Permalink


Response to EYESORE 9001 (Reply #10)

Mon Jul 12, 2021, 03:23 PM

37. Okay.



Thanks so much for the input.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #37)

Mon Jul 12, 2021, 03:25 PM

38. Which was every bit as useful as yours

I had a beagle once. Does that provide relevance either?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to EYESORE 9001 (Reply #38)

Mon Jul 12, 2021, 05:09 PM

42. Huh?

Wtf is your issue with me asking for the price of rental cars?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #1)

Sat Jul 10, 2021, 09:40 PM

15. Why post??? Nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to USALiberal (Reply #15)

Mon Jul 12, 2021, 02:16 PM

25. Because I thought someone might clue me in?

Discussion board that many of us come to for info? Op without comparison?

Feel good now? Wow, you sure told me!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Treefrog (Reply #1)

Mon Jul 12, 2021, 02:40 PM

32. I know what you mean. A link with some actual numbers, or...

... even some anecdotal information (for comparison purposes) would have been helpful. I don't know why people are giving you a hard time about this.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to NurseJackie (Reply #32)

Mon Jul 12, 2021, 02:42 PM

33. Thank you. It confused me too.

I havenít rented a car in years and was genuinely curious for more info. The op did elucidate later in the thread, but my oh my, the hatred I got for daring to say Iíd no idea about something.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 06:39 PM

2. I only know about one state:during the shutdown Hawaiian rental car agencies had to sell their stock

Öjust to stay alive. When tourists finally came back, prices on the few cars available were through the roof. Tourists even called up U-Haul just to get their hands on a vehicle.

So I think your question is deserving of some research.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Hekate (Reply #2)

Sat Jul 10, 2021, 06:49 PM

3. I've read that a lot sold off their fleets over the past year

And now demand is through the roof, and they don't have cars to meet it due to the global chip shortage affecting car sales.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 06:50 PM

4. Only Perhaps

Last edited Sat Jul 10, 2021, 07:54 PM - Edit history (1)

This meets the literal definition of gouging, but microeconomically, gouging typically includes an element of essential demand.
There is no essential demand with rental cars in vacation destinations. People don't HAVE TO take a vacation when supply is weak.
The sudden increases in retail price when some locales ran dry of gas after the pipeline fiasco, by stations in nearby locales comes much closer to gouging as the term is typically applied.
Gas has essential demand. Adding onto the already supply constricted higher price was clearly an opportunistic exploitation of a temporary condition & ensuing panic.
There is no panic over rental cars. Nobody MUST have a rental car.
Is it economic condition exploitation? Yes, it sure looks like it.
Is it conventional gouging? Probably not.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProfessorGAC (Reply #4)

Sat Jul 10, 2021, 07:13 PM

7. Nicely done

You explained that very well. Makes sense to me.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProfessorGAC (Reply #4)

Sat Jul 10, 2021, 09:39 PM

14. I agree, "gouging" requires an ethical dimension...

... that doesn't seem to exist with rental cars.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 07:07 PM

6. Rental car rates were already rising due to all the consolidation in the industry. I'd begun to

 

Notice they were getting higher pre-Covid.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 07:14 PM

8. There are all sorts of Covid-related distortions going on

I will list just a few that I personally have experienced just in the past few days:

-many service providers have moved to chat-only customer service. I am fine with this as an option, as chat-based customer service is often fine. But, it doesn't work well for all circumstances.

-rental cars are clearly more expensive now than they were before the pandemic. As others have noted, Hawaii actually got to the point where tourists were renting U-Haul trucks as a surrogate. I just priced some rental cars in SoCal, and they are far more expensive now than normally.

-used car prices have been through the roof. We are considering selling our car and are getting several thousand dollars more today for the car than we used to. This is after the car has aged more than 1.5 years and has several thousand more miles on it today than it did when we first got offers.

-we recently helped a relative book an international business class air ticket. The price was just ok, but the airline allowed only one bag. To get a second bag, you'd have to pay several hundred dollars more. Pre-pandemic, that was unheard of, particularly in the business class sector.

-room cleaning in hotels. Pre-pandemic, it occurred every day. During the pandemic, it has decreased markedly to one or two times a week in most of the hotels I've stayed. Whether this becomes the new normal remains to be seen.

Frankly speaking, we are still smack-dab in the middle of the pandemic, so it's too soon to say. But I do wonder whether companies are going to use the changes that have arisen over the last 1.5 years to cut costs/increase profits once the pandemic subsides.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 07:22 PM

9. Supply and demand

Over the past year and a half car rental places had to dump their car because people were staying home.

Now people want to rent cars and there are not that many available.

Supply and demand.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 08:25 PM

11. When I travel for biz or personal, I rarely rent a car anymore...

I take Uber or Lyft. Occasionally, I take a cab.

If you just need short trips, no need to rent a car. And no paying for parking!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 08:27 PM

12. I paid almost double what I would typically pay last month when I rented in Fort Lauderdale.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 09:31 PM

13. The last two times we rented a car

Dec. 2019 $205 Enterprise, Lawton OK, small SUV, 2 days
Dec. 2020 $227 Alamo, San Antonio TX, Chevy Malibu, 3 days

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 10:02 PM

16. Typical economy car rents for $275 a day. Two years ago this type of car rented for about $30 a day.

That is about 900% or 9 times as much. $275/day now vs $30/day then. Rental agencies depleted their stock when demand evaporated during lock down. $700/day was not unheard of when traveling started back up.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Reply #16)

Mon Jul 12, 2021, 02:20 PM

27. Thank you for providing information an op could have done.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 10:02 PM

17. I have to think there is some gouging going on

A one-week rental for a full size van in Myrtle Beach at the beginning of June was $1300.

The price currently? Over $3k.

Whether that's gouging or just good old 'Murican capitalism I haven't a clue. I hardly think the supply has been altered in just a month's time. Probably lots more demand though.

Reply to this post

Back to top Alert abuse Link here Permalink



Response to Prosper (Original post)

Sat Jul 10, 2021, 10:08 PM

19. They all sold their fleet in 2020

expecting to replace it with new once this was over and demand picked back up.

Thanks to the shortages, that has proved problematic. Now they have short supply and big demand. The price increases naturally come with that.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 10:15 PM

20. Prices are higher but not that much.


I just rented a large luxury sedan for $600 for 4 days. Thatís about 2 times per Covid

Reply to this post

Back to top Alert abuse Link here Permalink


Response to SYFROYH (Reply #20)

Mon Jul 12, 2021, 12:18 PM

22. Last week an economy car rented for twice that for the

same number of days, $1200.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Reply #22)

Mon Jul 12, 2021, 01:33 PM

23. Wow. That's nuts. I suppose its location and demand dependent.



Sorry to hear that.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Sat Jul 10, 2021, 10:27 PM

21. Zipcars, what happened to it? Big for a while

Reply to this post

Back to top Alert abuse Link here Permalink


Response to appalachiablue (Reply #21)

Mon Jul 12, 2021, 02:22 PM

28. They're still bug, expanding as a matter of fact

In the last year or so they've expanded in NYC, nowadays every fifth block has special Zipcar parking spots. They're just not viable outside of urban areas, if you can't get to the cars on foot or by transit there's not much point, just get an Uber or have Enterprise pick you up.

I'm actually renting one for a move next month; a Honda CR-V midsize SUV is costing me about $100 more for three days than a compact sedan from a legacy rental agency is going for for ONE day.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sir pball (Reply #28)

Mon Jul 12, 2021, 02:34 PM

30. That's good to know, I used to see

them around Arl., Va. close- in, but maybe they're focusing more on DC.

Great deal you got for a rental, I've recently checked the usual companies which are sky high as you say. Happy & safe driving.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to appalachiablue (Reply #30)

Mon Jul 12, 2021, 02:35 PM

31. They're definitely in DC

We're moving to Woodleigh Park, our new building actually has Zipcars in the lot!

Thanks for the well-wishes...as with all moves they're desperately needed

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sir pball (Reply #31)

Mon Jul 12, 2021, 03:38 PM

39. Lucky you, that's a wonderful area with

so much to offer and accessible to everything. I lived and worked in DC and environs for quite a while.

After years located in Friendship Hts., AU Park and Wisc. Ave. neighborhoods, I decided to move to the close- in burbs for more family space, yardage for gardening, etc. There are some advantages, but there's nothin' like the city and DC. Enjoy!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Mon Jul 12, 2021, 01:36 PM

24. About double here in Michigan, from pre-virus days.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Mon Jul 12, 2021, 03:05 PM

35. We reserved a mid-sized car in Phoenix. Hertz.

Arrived at the airport rental agency, told to go pick a car in the lot. (We're gold members.) Only ... there were no cars, just empty spaces. We went back to the agent, and he said we had to wait until someone else returned a car. Or ... would we like to rent a high-priced luxury SUV? They had two of those.

We didn't want to wait all day for someone to return their car, so we had to go with the luxury car. It was nice, but it was 2X what we expected to spend.

The car supply is way, way down.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Prosper (Original post)

Mon Jul 12, 2021, 03:08 PM

36. Supply is way down, prices are way up

No deals on most new cars, either, and I was going to buy one this summer. Waiting for a few months now.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread