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Travel -
Getting There
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Written by the frugal nomad
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Thursday, 15 October 2009 14:13 |
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Page 3 of 4
Now let’s say you had a change of heart and decided to spend the weekend in New York City. The best Hotwire.com deal for the same essential car on the same exact same dates will cost you $278 if you opt for the Rental Car Protection and Trip Protection. That’s around a 180% increase and that’s the cheapest HotWire.com vanilla rate they charge in Seattle. Even if you decline the insurance, you’re still talking $220 plus dollars - a 120% premium over the Seattle rate.
If that ain’t bad enough - try going directly to HERTZ.com and you’ll find the lowest price for the same 4 day rental is $346.00. Hertz does you the ‘favor’ of quoting you a comprehensive daily rate that includes liability insurance in addition to the taxes and fees. I doubt if they do that to save you the trouble of doing the math.
The best deal however was not Hotwire.com - that honor went to the AARP - the American Association of Retired Persons. Without trip protection and insurance, their quote was 227.30 compared to the Hotwire.com rate of $222. But there is a distinct advantage of booking with AARP, you only make a reservation and get billed when you show up to pick up the car. With Hotwire.com, you don’t have the right to cancel. Once you book it - you pay regardless of whether you pick it up or not. No cancellations allowed. Why is that option worth an extra fiver? Because the car rental deal you book today might not seem like such a screaming bargain tomorrow. Besides, you might decide to cancel or rent it for a week instead of four days.
So, there you have it, the same product, booked online with a price spectrum that ranges from $100 to $350. That’s a whopping $250% gap! You might want to ask how does Hertz and AVIS and the other car rental giants maintain their market dominance. How do you stay in business and not alienate clients when you’re charging such a high premium? A big part of the reason is brand name. Most consumers rent a car once or twice a year - if that. But they’re inundated with advertising all year round.
They might fall for that $20.00 Hertz or Avis coupon that they cut out of the only magazine they subscribe to and think they’re scoring a great deal. One thing is certain - most consumers are car rental illiterate. When they decide to book at Hertz’s online site - they don’t notice that the quote includes the optional insurance and it is up to them to decline it when they pick it up. To remove it from your bill, you have to show your insurance card and that applies to all rentals. So, just for emphasis, always carry proof of insurance in your wallet. A $20 coupon on a $350 rental is peanuts for savings. If you want really good coupons, you will need to go to the second tier rentals like Budget or Dollar. I have picked up a Minivan in Florida for $250 for a week vs. a lowest available rate from any other rental agency of $650.
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