The cost of doing business in different markets is a big factor including labor, real estate and the price to insure a fleet of cars. Varying tax rates can also affect the final bill, especially in places that levy special taxes on car rentals.
But the number cheap airline tickets to the philippines next year of car rental companies that serve a particular market also plays a significant role in price. And competition is a growing issue as the industry consolidates and leaves just a few dominant companies that each own several car rental brands.
Jonathan Weinberg, president of the car rental agency AutoSlash.com, analyzed September midweek rentals booked through the site and found customers were paying about $97 a day in New York City, including taxes, versus $40 in Las Vegas and $45 in Miami and Los Angeles.
In somewhere like Los Angeles, you have so many different vendors at the airport, and many are low-priced value providers, Mr. Weinberg said. Theres so much competition for customers, it tends to drive prices down.
In Miami, which recently built a combined rental car center near the airport, 16 companies compete for customers, including more than half a dozen discounters like Payless, Advantage, cheap airline tickets to the philippines next year E-Z Rent-a-Car and Ace. Being in the same place puts the low-priced providers on more of a level playing field, since travelers take the same bus to get to the building and do not have to wait longer for a company that cannot afford frequent bus service. A new train running from the Miami airport to the rental car center replaced the bus last week.
The new consolidated Miami rental facility provided Sixt an opportunity to get in there, Mr. Weinberg said. Other cities that have at least 11 car rental companies at their airports include Los Angeles, Phoenix and Fort Lauderdale, Fla., whereas there are only six companies at Kennedy International Airport in New York, all major brands.
The more competitors you have in a market at an airport, the more pricing competition you would expect, Mr. Broome said, though he also cited operational costs and basic supply-and-demand issues as rate factors.
Local taxes are another important variable in price differences and one that has been getting more scrutiny as the travel industry fights municipalities that tax visitors to help pay for new stadiums and other projects that do not necessarily benefit travelers.
A study of travel taxes published this spring by the Global Business Travel Association, an association of travel managers, found that Chicago OHare, Boston Logan, Las Vegas McCarran and Kennedy airports levied the highest taxes on car rentals adding 20 to 25 percent to the base price of the car.
Its not like the price of a car is dropping through cheap airline tickets to the philippines next year the floor it isnt, said Neil Abrams, president of the Abrams Consulting Group, which advises car rental companies. Rates are below what they were, but are still relatively high on a comparative basis.
According to the groups weekly survey of rental cheap airline tickets to the philippines next year prices, the average rate for a midsize car at 10 major airports in mid-August, for example, was $85, not including taxes or fees, compared cheap airline tickets to the philippines next year with $93 at the same time last year. In 2009, the price was $103, roughly the high point for rates in the decade cheap airline tickets to the philippines next year the survey has tracked prices charged by the major car rental brands. (The Abrams index does not include discounters like Payless.)
The reason for the recent price decline is not weak demand: Avis Budget, Dollar Thrifty and Hertz all reported positive cheap airline tickets to the philippines next year earnings in the second quarter of 2011, in part because of increases in rental days. But with a strong market for used cars, rental companies have been making money selling their older vehicles, so they have not set prices as aggressively as they did when the recession cheap airline tickets to the philippines next year hit.
Theres an incentive to buy cars, maybe even more cars than you can rent at an optimum price because you know youre going to make a lot of money at the back end, Mr. Abrams said. That has a muting effect on rental pricing.
As for the effect of competition on pricing, cheap airline tickets to the philippines next year Mr. Abrams said that even with more airports building consolidated rental car centers, discounters like Payless or Fox Rent a Car faced challenges in capturing corporate clients. Fox isnt in Detroit, theyre not in Boston, and theyre not in Miami or Atlanta, he said. If youre a corporate customer, and youve got people traveling all over the place, you cant use a supplier that cant meet your employees needs.
But business travelers renting through corporate accounts have been somewhat shielded from sticker shock by discounted rates. cheap airline tickets to the philippines next year Ovation Corporate Travel clients, for instance, paid an average of $81 a day for a rental cheap airline tickets to the philippines next year car in New York City in the first half of 2011 and $40 in Las Vegas. Those prices include taxes, fees and options like navigation systems.
For those who do not benefit from a corporate discount, one way to save is checking to see if the price has dropped after making a reservation, or booking through a site like AutoSlash, which does this automatically.
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