Car hire costs climb - Car Rental News
Car hire costs climb
Car Rental News - 24/04/2008
Since 2001, the price of car rentals in USA has increased
Although with the dollar declining in value against the pound, America remains a great place to visit for a vacation this year, the cost of renting a car on the other side of the Atlantic continues to climb.
A recent study has indicates that several factors have contributed to climbing car hire prices across the country. The cost of fuel is high and continues to remain so and most car hire companies have also seen increases in their overhead costs and maintenance prices.
According to American Express, the cost of renting a car in America increased by 4.4 per cent between 2006 and 2007.
AMEX has conducted a similar study for years now and is generally considered to be a reliable source of information on the issue. The study tends to focus on business travelers but gives a good picture of the industry as a whole.
Operating costs for most car hire companies climbed in 2007, making it increasingly difficult for companies to remain profitable. The cost of acquiring new vehicles for the company’s fleet rose considerably last year, with many company’s finding it increasingly difficult to get good discounts from manufacturers. Company’s are facing difficulty when it comes to selling off their older cars as well, gaining less money and recuperating less costs.
The AMEX survey has tracked increasing car hire rates since 2001so the trend seems likely to continue. In 2001, the average car rental cost including taxes and surcharges was $63. In 2007, however, it was $72.