Travel expert predicts car rental costs will rise in 2008

Renters should expect to pay more for car hires in 2008, according to travel columnist and MSNBC contributor, Christopher Elliott. Recent projections published by American Express predict that rental fees will rise by up to 4% next year in some cases, but by 2% at the very least, almost across the board. Elliott, however, believes that AMEX may have miscalculated its projections and that price increases will be significantly higher than 4%, mainly due to consolidation in the rental industry. Earlier this year, Enterprise purchased the company that operated both the Alamo and National car rental firms, which makes for less competition and thus raises the likelihood of price increases. Other car rental firms are also trying to increase their profits by marketing an ever wider selection of upgrades, such as GPS navigation devices and extra insurance. Elliott suggests that clients consider long and hard whether they really need these upgrades, or if they can do without them, because daily fees may seem negligible enough, but these do add up in the case of rentals lasting over a week.

In addition to anticipated price hikes in the car hire industry, other parts of the hospitality and travel sector are also planning on raising their rates, including both hotels and airlines. Some hotels and airlines, for example, are considering asking $2 credit card usage for each transaction. Allegiant Air even started charging $8.50 for online bookings. While most airlines add a fuel surcharge to tickets, Elliott noted that some cruise lines have started doing this as well, and tourists should expect more of these fees in the New Year.

www.enterprise.com