Originally Posted by
Gardyloo
A car might be a more cost-effective alternative, plus it would allow you to stop in Talkeetna or Denali Park en route, or take interesting side roads, etc. Also I think there are more scenery options from a car than from the train.
But it would depend on the overall itinerary. A car would allow a circle trip - Anchorage - (Denali) - Fairbanks - Valdez - (ferry) - Whittier - Anchorage - while the train only goes on the same tracks back. One-way car rentals are very costly in Alaska however (car rental is expensive, period) so if an openjaw itinerary is anticipated - XXX-ANC//FAI-XXX - then the train might be cheaper.
Check the yellow pages for alternative car rental agencies. I've found in the summer that outfits like Arctic Rent A Car or even Rent A Wreck can be pretty nicely priced. Also, it sometimes pays to take advantage of the specials offered by the larger car rental companies. Out of Anchorage, the rates can sometimes be surprisingly good. Mid/Late May or later in August can also help with rates.