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Travel industry economics makes no sense

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Travel industry economics makes no sense

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Old Apr 10th, 2002, 06:17 AM
  #1  
Mark
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Travel industry economics makes no sense

I recently flew to Tampa, Fl, and rented a car for 5 days. I searched the web for the best rates for both. My airfare was $128. The compact car cost me $250. That's nuts.
 
Old Apr 10th, 2002, 03:19 PM
  #2  
Randy
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Everything works on supply/demand....the $128 on airfare you spent was 26% taxes....the airlines face too intense competition...enjoy all the overcapicity,and great low fares,just don't complain about it costing $800 roundtrip to fly to Lincoln,or Stockton, or Fayetteville.We (the airlines) are in business to make money...
 
Old Apr 11th, 2002, 12:26 PM
  #3  
Ian
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No, supply and demand doesn't explain it -- way too simplistic. It's more a matter of subsidy, deregulation, and what the market will bear (which is NOT the same as supplying what is demanded). And it's also a matter of what is tax deductible for business or what areas of the country cater to wealthy tourists. <BR><BR>In the case of auto rental, there's a definite price-fixing mentality that's rapidly getting out of hand. They're all thinking up new "insurance" schemes/options to get around the savvy travelers who have learned to avoid paying those ridiculous extra charges that are pure profit -- e.g. Plan 1 "Basic" which is anything but, and "Plan 2" which amounts to doubling or tripling your daily rate for something already covered by your own insurance. They urge you to buy a tank of gas, and then calculate a full tank on several gallons larger than the actual working capacity of the car's tank. <BR><BR>And if you (the airlines) are in business to make money, why have "you" insisted historically on prioritizing predatory practices as if driving other airlines out of business were more important than serving the traveling public? Yeah yeah, I know -- less competition, more profit. But you can't tell me it really helps anyone to have price wars to suffocate small airlines and then once they're gone, charge exorbitant new prices until the next price war, when you might be the target this time. <BR><BR>
 
Old Apr 13th, 2002, 09:32 AM
  #4  
reply
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You should enjoy those low priced a/l tickets while you can.<BR><BR>As soon as travel agents are run out of the ticket distribution channel they will rise to a level that NO ONE will want to pay. <BR><BR>Isn't that right Randy? The a/l's are colluding amongst themselves thinking they will contro the consumer. And at the rate it is going they will. And then what? Only those median income families of $60,000.00 combined income or over will be able to travel. And when they won't purchase your tickets what are you going to do??<BR><BR>
 
Old Apr 20th, 2002, 09:24 AM
  #5  
calli
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I heard on the business news that car rental companies are reducing their fleet. Therefore they have increased their prices. 250 is high into Florida..I think you got ripped off. I have noticed that National, Hertz and Avis are high..stick with Dollar and Alamo.
 
Old Apr 20th, 2002, 11:15 AM
  #6  
Mark
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I paid, partly, for picking up the car in the Tampa airport -- of those with in-airport facilities, Avis was (believe it or not) the cheapest with an on-line "discount." But of the $250, almost $80 was Florida add-ons.<BR><BR>Dollar, Alamo, etc. were cheaper but lately Dollar has been playing shell-game stuff with insurance "plans" and gas "plans." And the differential wasn't enough to induce me to add the 30 min. plus it would have taken to mess with vans, etc., since I had some tight timing.<BR><BR>Interesting point re:rental companies reducing their fleet. If so, there are a LOT of decent cars out on the used-car market right now, I'd say!!<BR><BR>I think they needed to -- all those stupid vans and mondo-jumbo cars out there, that they kept trying to upgrade me into because they didn't have enough compact cars.
 
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