A recent study has shown that car hire prices are continuing to rise as a result of fuel prices increasing and due to the maintenance and overhead charges that most car hire companies have to face.
The survey was published by American Express and showed its 2007 rental rates and focussed on business travellers. It was determined from the research that the price for hiring a car jumped by 4.4 per cent between 2006 and 2007.
This AMEX study is known for being one of the most reliable sources of information on trends in the pricing of travel related services and it is therefore known as the Business Travel Monitor.
American car hire companies were showed to be having difficulty remaining profitable as their operating costs continue to rise. One of the biggest reasons for the companies finding it difficult to make any profit is due to fleet costs. Car hire firms are finding it hard to cope with the 20% increase on the costs of fleets; this increase is due to firms finding it much more difficult to buy new vehicles from the manufacturers for discount prices. This therefore means that it is extremely difficult to recover the extra expenses.
The survey shows a steady rise in car rental rates which goes back to 2001. The average price of hiring a car in 2001 was $63 and in 2007 it had risen steadily to $72. With this trend showing no signs of slowing down, finding cheap car hire when you are away on holiday in the US is not looking hopeful.
American car hire companies were showed to be having difficulty in remaining profitable as their operating casts continue to rise.
Car hire companies are finding it hard to cope with the 20% increase on the cost of fleets.
This means that finding cheap car hire when you are away on holiday in the US is not looking hopeful.
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