Car rental prices soaring
Ferry Online Travel News 01/03/2010
Decrease in tourist factor consider major contributing reason
For those people that are planning to rent a vehicle in the next few weeks and have not done so are in for an unpleasant surprise. The average price of a hire car has shot up in the past year by up to 50% in some areas. This will come as alarming news as car hire generally has been quite reasonably priced across the globe. The lack of accessibility of certain models and sizes might leave you perturbed and with nowhere to turn.
There have been various factors in the pricing market that has compelled hire firms to increase the cost of rental days. The first major one was last year after everybody was predicting a large decrease in tourist traffic and outlay on things like car rental, many firms kept a low armada of cars. These sequentially made demand outnumber supply making rental cars a higher commodity. Some finance firms would also not finance new car purchases because of the state they believed the tourist industry to be in.
The tourist industry was not the best last year. Most firms within the trade reported heavy differences in profits compared to those the same time in the previous year and this has had an accompanying effect. To keep the industry, and some firms, going many car hire suppliers have had to increase their costs to keep them from struggling for a second year in a row. There have been many casualties in tourist industry due to the downturn and car hire firms are trying not to add to that aspect.
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