Are We Looking At A USA Car Hire Shortage For Christmas?

Hi all,

Yeah, yeah I know… its only August and I’m already talking about Christmas. I’m well aware of the unwritten rule that you can’t mention Christmas until the Coca Cola advert comes on the TV but I thought this information was worth breaking that embargo.

We reported via our facebook page a few weeks back how we were expecting a Christmas surcharge to be on the way shortly and my findings today definitely support this.

During my usual trawling of USA car rental sites to make sure we remain the UK’s number one for price and service I came across some interesting pricing for Christmas from our main suppliers.

The following screen shots are all based on Orlando International Airport (MCO) for a weeks hire commencing the 20th December 2012 as if I were a U.S. domestic customer.

Alamo Rent A Car

Budget Rent A Car

Dollar Rent A Car

As you can see prices are already in the hundreds of dollars and the prices above don’t even include insurance!!

So why the shortage?

Here’s my thought process… you’re a car rental supplier, you know that each year the domestic market goes bonkers and you’re probably going to sell out, actually demand will exceed supply. So just like holidays being more expensive in kids summer holidays, car rental prices go up.

However you also know that you’re going to make more money selling to the domestic market than you will selling to the international market. Reason being you’ve negotiated contractual pricing way before the Christmas period hits, yes prices can alter but not the to the extent of a domestic hire. What you do control though is the availability of vehicles over this period, so where as a business is the best place for you availability to be?… Correct domestically.

So the point I raise of an impending Christmas period shortage is very real… actually so real I wrote about it last year as well…

So my advice would be to book as soon as possible to avoid disappointment especially on minivans and convertibles, remember you can secure your rental with a £50 deposit.

Regards.

James

 car hire USA

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