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Rental car companies cannot control their inventory as well as we might hope. Sometimes cars are returned early. Sometimes late. Sometimes late and in need of m
by xabotage 5y ago
Rental car companies cannot control their inventory as well as we might hope. Sometimes cars are returned early. Sometimes late. Sometimes late and in need of maintenance. Sometimes people cancel. If the rental agency planned for these contingencies with additional inventory, that would just be extra cars lying around depreciating most of the time. I think we are to understand from their "untenable conduct" is that margins are too low to not be cleverly utilizing all of their inventory JIT-style, and nobody in their market segment wants to pay higher fees in exchange for a guaranteed vehicle model.
- Ansil849 5y ago> Rental car companies cannot control their inventory as well as we might hope. Why not? Make a late return fee sufficiently high, and see if suddenly inventory control becomes a lot easier.
- xabotage 5y agoDepends. I wouldn't want to get slapped with a high fee if I were held up in traffic, I'd end up renting elsewhere. Also, I've heard that rental agencies often lend vehicles between one another, which could further complicate the issues that make capacity unreliable.
- megablast 5y agoAnd everyone just uses the competition.