Why There's No Rental Cars (Metlakatla: hotel, buying, wages)

[Metlakatla]

Originally Posted by roadwarrior101

Never said this was specific to Alaska. I know it's occurring in Hawaii, Montana and elsewhere. I wouldn't consider a rental car a luxury item, but to each their own. I do think companies need to be profitable, but I also believe in consumer protections. I can afford it and I'll be helping to contribute to your economy next month, gladly so.

You won't be contributing to my economy by spending money on a rental car in Anchorage, but thanks for the kind words. Most people don't understand that the majority of tourist dollars don't even stay in the state.

Compared to consumer staples, rental cars are indeed luxury items. I didn't make that analogy; you did. Kind of like how my BMW is a luxury item compared to a basic transportation beater, food, electricity, and other "consumer staples."

Here's a definition of the term "consumer staples." Rental cars don't qualify.

The term consumer staples refers to a set of essential products used by consumers. This category includes things like foods and beverages, household goods, and hygiene products as well as alcohol and tobacco. These goods are those products that people are unable—or unwilling—to cut out of their budgets regardless of their financial situation.


Consumer staples are considered to be non-cyclical, meaning that they are always in demand, year-round, no matter how well the economy is—or is not—performing. As such, consumer staples are impervious to business cycles. Also, people tend to demand consumer staples at a relatively constant level, regardless of their price.

Your definition of "price gouging" is inaccurate as well.

Never said this was specific to Alaska.

Perhaps not in so many words, but you did say this:

You guys really need to pass some consumer protections from price gouging, supply chain issues aside.

As if we're supposed to fix it for you. I think that's where the anomisity is coming from.

If you believe so strongly in consumer protections, perhaps start with your own back yard. Rental car prices in California are pretty high right now.

[zerp]

Originally Posted by roadwarrior101

Yep. Obviously, many folks on this board don't care about rental car prices as they're residents and it doesn't directly impact them. Let's see how they feel when the inflation goes up for consumer staples and other items that they depend upon regularly. Human nature though. It's all about self reliance when the person getting screwed over is not you.

Note that inflation is not the same thing as higher prices as a result of high demand and low supply. Just because you don’t like the price, doesn’t mean it is “gouging”. Someone apparently is paying that price or the price wouldn’t be what it is.

[roadwarrior101]

Originally Posted by Metlakatla

You won't be contributing to my economy by spending money on a rental car in Anchorage, but thanks for the kind words. Most people don't understand that the majority of tourist dollars don't even stay in the state.

So, my spending at restaurants, locally owned hotels, tours and gift shops won't contribute to the economy?

[EllieKay56]

Originally Posted by Arktikos

Perhaps Alaskans will take to doing what some Hawaiians are, namely renting out their second cars to tourists. Hawaii rates are even more ridiculous than in Alaska, when you can actually find a car that is.

That is what Touro is. People rent out their extra cars. My co-worker is renting an Equinox from a private person, since Avis cancelled their rental. I will be curious to see how it goes. Hopefully they have no issues with the vehicle. I know she said when they were on the site, the cars were going fast.

[Sunbiz1]

Originally Posted by ketchikanite

We don’t need more government intervention.

In this case, yes we do; via the attorney general offices.
Price gouging has gotten out of hand.

[Metlakatla]

Originally Posted by roadwarrior101

So, my spending at restaurants, locally owned hotels, tours and gift shops won't contribute to the economy?

Not to my economy, no; whatever goes on in Anchorage doesn't affect me in the slightest. And again, not as many tourist dollars stay in the state as some of you think, although taxes and fees do add some to the state coffers. But most of the front line minimum wage employees that tourists think they're providing work for by visiting? A majority are from out of state. So are many "local business owners."

I wouldn't be happy about paying that rate for a rental vehicle either, but neither would I go onto a state forum telling people they need to "do something!" about it and tossing insults when they don't respond the way I think they should.

The same thing is going on in your state, which gets far more tourists than Alaska does. Like I said, if you're so concerned about what you're erroneously calling "price gouging," start with your own back yard. How concerned are you about those "getting screwed over" in your state by the rental car industry?

[Metlakatla]

Originally Posted by Sunbiz1

In this case, yes we do; via the attorney general offices.
Price gouging has gotten out of hand.

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

[roadwarrior101]

Originally Posted by Metlakatla

The same thing is going on in your state, which gets far more tourists than Alaska does. Like I said, if you're so concerned about what you're erroneously calling "price gouging," start with your own back yard. How concerned are you about those "getting screwed over" in your state by the rental car industry?

Who said I wasn't concerned about what happens here in California? But, as a FYI, they do crack down on price gouging, which we've seen after natural disasters (earthquakes, fires, etc.). I'm sure this will become an issue with the state legislature here as it should elsewhere.

[Metlakatla]

^ Alaska's Consumer Protection Act likely doesn't cover this situation, and even if it did, Alaska's state of emergency expired in April, so it wouldn't be applicable.

I'm not sure these rental car businesses in Alaska are making any big profits on this; they're dealing with depleted inventory as explained in the video AKStafford posted. At best, rental car companies have a 10% profit margin, and not having their normal volume must cut that down even further. And then, I imagine many are in a financial hole after last summer, and it seems car rental companies didn't get in on the CARES Act funding to the extent other industries did.

https://www.bloomberg.com/opinion/ar...ntal-car-bonds

I'd agree with you if it were a matter of them having their usual inventory, but that doesn't seem to be the case.

Personally, I wouldn't feel right charging those prices and would probably sell the rest of my cars and wash my hands of the car rental industry if I were in their position, but people would complain and want the government to do something about that as well.

[wamer27]

Originally Posted by roadwarrior101

Who said I wasn't concerned about what happens here in California? But, as a FYI, they do crack down on price gouging, which we've seen after natural disasters (earthquakes, fires, etc.). I'm sure this will become an issue with the state legislature here as it should elsewhere.

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....