Inexpensive weekend rentals- how are prices determined?
Aug 21, 2011, 5:42 pm
#1
Original Poster
Join Date: Jan 2003
Programs: American Airlines Platinum, National Executive
Posts: 3,790
Inexpensive weekend rentals- how are prices determined?
I regularly rent cars from National, and I just rented a car for just under 24 hours this weekend. Base price was under $20.
If someone doesn't buy insurance, GPS or other add-ons, how in the world does National make any money that way? Depreciation alone would be over $10 on a typical midsize, plus the costs of maintenance and the costs of running the National facility.
Just curious as to how National determines pricing?
If someone doesn't buy insurance, GPS or other add-ons, how in the world does National make any money that way? Depreciation alone would be over $10 on a typical midsize, plus the costs of maintenance and the costs of running the National facility.
Just curious as to how National determines pricing?
Aug 21, 2011, 6:21 pm
#2
FlyerTalk Evangelist
Join Date: Jun 2004
Location: PIT
Posts: 10,969
I regularly rent cars from National, and I just rented a car for just under 24 hours this weekend. Base price was under $20.
If someone doesn't buy insurance, GPS or other add-ons, how in the world does National make any money that way? Depreciation alone would be over $10 on a typical midsize, plus the costs of maintenance and the costs of running the National facility.
Just curious as to how National determines pricing?
If someone doesn't buy insurance, GPS or other add-ons, how in the world does National make any money that way? Depreciation alone would be over $10 on a typical midsize, plus the costs of maintenance and the costs of running the National facility.
Just curious as to how National determines pricing?
Aug 22, 2011, 6:44 am
#3
Join Date: Jan 2009
Location: New York suburbs
Posts: 4,210
Its better to get $20 for the car than to let it sit idle for the weekend.
Not always. If it's a manufacturer buyback, then the incentive is to maximize revenue, and hence not let the car sit idle too long.
However, more rentals today are risk vehicles. The rental agency owns the car outright, and has to sell it themselves at auction. One major issue for resale value is mileage. So there arise more situations where some agencies would rather not rent the car.
Not always. If it's a manufacturer buyback, then the incentive is to maximize revenue, and hence not let the car sit idle too long.
However, more rentals today are risk vehicles. The rental agency owns the car outright, and has to sell it themselves at auction. One major issue for resale value is mileage. So there arise more situations where some agencies would rather not rent the car.
Aug 22, 2011, 6:50 pm
#4
Join Date: Jan 2007
Posts: 2,905
Its better to get $20 for the car than to let it sit idle for the weekend.
Not always. If it's a manufacturer buyback, then the incentive is to maximize revenue, and hence not let the car sit idle too long.
However, more rentals today are risk vehicles. The rental agency owns the car outright, and has to sell it themselves at auction. One major issue for resale value is mileage. So there arise more situations where some agencies would rather not rent the car.
Not always. If it's a manufacturer buyback, then the incentive is to maximize revenue, and hence not let the car sit idle too long.
However, more rentals today are risk vehicles. The rental agency owns the car outright, and has to sell it themselves at auction. One major issue for resale value is mileage. So there arise more situations where some agencies would rather not rent the car.