Car Hire Price Hike: 50% Up, So Now What?

Anyone who has rented a car from Avis, Budget, Europcar, Hertz, or Thrifty before mid-2009 will be in for a big shock when they notice the not-so-modest jump in current car hire prices. Our original post on car hire costs to expect used to say a 1-week car hire for a full-sized sedan will cost you an average of A$290. Now, we’ve revised it to ask you to expect a cost around the A$430 mark. That’s a whopping 40-50% average price increase across Australia’s major city airports!

Why has this happened? (with thanks to Sarah for the question)
The global recession has hit the travel industry hard – just look at all the flailing airlines – and that includes car hire. The story as told by the major car rental companies is that they’ve had to slash their fleet in order to stay afloat in these bad times. As a result, with greatly reduced cars available, they’ve had to push up prices. How absolutely essential it is for them to raise prices this substantially, if at all, is open to debate.

What can we do about it?
Thankfully, most of the major price hikes have been reserved to the big global brands. If you want to stick with these known names, you will just have to fork out the money. But you may be more motivated to consider other options: Many of the smaller independent companies haven’t increased their prices (and even if they have, it’s by a lot less). We suggest you do a little extra research on alternative companies as now, more than ever, your savings will likely be sizable. A little digging can go a long way.