SUV Rental Prices a Bargain in Stagnating Travel Market

Travelers Who Need Extra Vehicle Space Treated to Slashed Car Rental Prices

Thanks to rising fuel prices, the cost of everything has gone up. People are choosing staycations over spectacular trips. They're cutting costs at home by washing laundry in cold water, keeping thermostats at higher settings and using fans instead of air conditioning. While seems like a big bummer for consumers, it can actually work in our favor in some circumstances. I say, who cares about the gasoline squeeze?

What comprises the silver lining to this great global cloud of smog is a gift to travelers. A bonus for vacationers with families to shuttle or businessmen with trade show setups or big boxes to move. I am willing to bet this is the first time in automotive history or even in travel history that it is actually a good time to rent a sport utility vehicle.

Demand for economical vehicles with smaller engines has fueled (pardon the pun) consumer demand at the rental counter. As a result, prices for compact and full sized cars are up, and sagging interest in SUVs has sent prices way down. They can't keep the smaller cars in stock.

Meanwhile, car rental companies can hardly give away SUVs. The gas guzzlers are in such low demand due to their poor fuel economy that in most cases they can be rented for less than a sedan. Customers know it can cost over $100 to fill the tank of a thirsty SUV, so rental outfits have slashed prices to get SUVs moving. A recent peek into Houston rentals revealed a $40 savings per day between SUVs and full sized vehicles. In Boston the difference was $50. In every market I checked in from Phoenix to Los Angeles to Minneapolis and Orlando, SUVs are renting at a fraction of the price of standard sized vehicles.

Not every renter sees lower SUV prices as a reward. The shortage of smaller vehicles is causing rental car companies to upgrade customers free of charge. While an upgrade might have been a welcome perk in years past, many drivers don't plan for the extra cost of fuel leaving them feeling shortchanged by the upgrade.