Why There's No Rental Cars (school, live in, price)

[pnwguy2]

The pandemic has made everything automotive more expensive. New and used car prices are at all time highs. Again, this is part of a supply issue. It may turn around, but not likely anytime soon. Get use to high prices on just about everything. Inflation is back, with a vengeance. Unfortunately I don’t think wages will catch up in the near term. The real damage to the economy is still in front of us.

[Sunbiz1]

Originally Posted by Metlakatla

Only for things that fall within the legal definition of price gouging. This doesn't.

So unfortunately true.
After selling off inventories, agencies are hesitant to buy more; and hire people.
Other countries are also feeling the crunch, prices in Mexico are double right now; and it's off-season.

[roadwarrior101]

Originally Posted by wamer27

Did you watch the video in the OP? It explains everything... Car companies are shutting down plants because of it, which means used cars have already skyrocketed in price as new cars are hard to find. Car rental companies that actually survived some, do you think they even have the capital to buy a ton of cars that aren’t even available or being made....

I completely get that it's a supply and demand issue. However, I'm saying that the gouging is a lot worse in Alaska vs what I'm seeing elsewhere. Just for fun, I plugged in my travel dates to check prices at other airports in CA, FL and HI. Yes, they're overpriced there also, but Alaska is 2-3x higher for the same type of vehicle, if it's even available.

[ketchikanite]

Originally Posted by roadwarrior101

I completely get that it's a supply and demand issue. However, I'm saying that the gouging is a lot worse in Alaska vs what I'm seeing elsewhere. Just for fun, I plugged in my travel dates to check prices at other airports in CA, FL and HI. Yes, they're overpriced there also, but Alaska is 2-3x higher for the same type of vehicle, if it's even available.

You just don’t get it. That $100 dollar a night hotel room that you get in the middle of winter in Alaska will often cost you $250 to $300 a night in the summer. That’s not gouging. That’s simply supply and demand. Alaska prices for everything have always been higher then the lower 48.

[roadwarrior101]

Originally Posted by ketchikanite

You just don’t get it. That $100 dollar a night hotel room that you get in the middle of winter in Alaska will often cost you $250 to $300 a night in the summer. That’s not gouging. That’s simply supply and demand. Alaska prices for everything have always been higher then the lower 48.

$250-300/night for a hotel is fairly standard for any resort area in the US. $300+ per day for an average rental car is not.

[Arktikos]

Originally Posted by ketchikanite

You just don’t get it. That $100 dollar a night hotel room that you get in the middle of winter in Alaska will often cost you $250 to $300 a night in the summer. That’s not gouging. That’s simply supply and demand. Alaska prices for everything have always been higher then the lower 48.

But this has absolutely nothing to do with current car rental rates. They're WAY higher than typically found during summer season. As in, over 100% higher. Just because demand is greater than supply doesn't necessarily justify these rates. Sure seems like it fits the definition of gouging to me. Gouging typically occurs during times of crisis. OTOH, rental car agencies have taken a huge hit over Covid and may be struggling to survive. So, it's not just that a crisis has occurred, they've suffered a great deal for months. I don't know, should the companies charge whatever they can in this situation? Maybe so.

[Metlakatla]

Originally Posted by Arktikos

But this has absolutely nothing to do with current car rental rates. They're WAY higher than typically found during summer season. As in, over 100% higher. Just because demand is greater than supply doesn't necessarily justify these rates. Sure seems like it fits the definition of gouging to me. Gouging typically occurs during times of crisis. OTOH, rental car agencies have taken a huge hit over Covid and may be struggling to survive. So, it's not just that a crisis has occurred, they've suffered a great deal for months. I don't know, should the companies charge whatever they can in this situation? Maybe so.

It's my understanding that that particular industry didn't get the same level of CARES ACT assistance as others such as hotels and airlines. Price gouging laws are applicable during a state of emergency; Alaska is no longer under one.

It seems to me that with reduced inventory and a fairly low industry profit margin along with an extremely short season compared with other popular desistinations, these rental car companies probably aren't in the best of financial health. I guess they could close up; many have, and leave the tourists with nothing.

I think most of us have been financially inconvenienced because of COVID in some way or another.

https://www.washingtonpost.com/busin...rtage-economy/

[beach43ofus]

Originally Posted by riceme

That's a great video that explains the global supply chain issues in a pretty simple way. Thank you for sharing it - I enjoyed watching it.

I had the privilege of being trained and certified in Lean Six Sigma by Toyota when I worked for GE, and am eternally grateful for it. It has helped me in every job I've had since then.

I too was trained in Six Sigma, but only achieved Green Belt status before I left. It totally changed the way I see the business world.

I'm actually thinking about starting a consulting firm for healthcare practices in Florida using similar principals. I'd only hire Black Belts to help me.

Rental car agencies should be buying off-lease cars to bolster inventory. I don't know why they are not.

[beach43ofus]

Originally Posted by roadwarrior101

So, you're all for screwing the consumers? Nice.

Soon, the market will correct itself...it always does. Once you bring government into the equation, it grows like a cancer that can't be removed.

[phlinak]

Originally Posted by ketchikanite

We don’t need more government intervention.

Originally Posted by roadwarrior101

So, you're all for screwing the consumers? Nice.

It's the capitalist way.

Yay, unregulated free market.