I got an email about this from my friend in Hawaii. It seems with the return of tourism to Oahu (which had been down 90% for almost the entire pandemic), that the demand for rental cars has gone through the roof compared to availability.
No doubt the car rental offices were selling off their fleets to help cover operating costs during the pandemic. Now that it’s ended, their short sighted move has caught them flat footed. In typical predatory capitalism fashion they’ve decided to charge over $700 a DAY for basic rentals and over $1000 if you want a convertible:
Normally, I’m quite pro-capitalism. I understand that TO A DEGREE, supply and demand are going to factor into cost. Doing so covers the cost of increasing the supply to meet demand.
HOWEVER… Where do we draw the line in this kind of instance? Where does the law of supply and demand become predatory capitalism? I’m not sure I have an EXACT answer there, BUT, 10x the normal going rate would seem to be across that line. We rented a Mustang GT convertible a year and a half ago for our honeymoon and only paid $100 a day, which is still pricey compared to most other locations.
Wouldn’t an ethical business simply go out and buy some cars from local dealerships to increase their fleet size? At $100 a day rental rate, the car loan note can be paid for on 5 days of rental per month.
Just because you CAN do something doesn’t make it right. Look at the price hikes on insulin as another example. Somewhere along the lines the idea of business ethics got flushed and replaced with the SHORT SIGHTED idea that the only duty a business had was to provide as much short term profit as possible to it’s investors. If one has NO ability to ponder consequences, that sounds great also. In the long term though, it destroys a business’s reputation and customer loyalty. Look at Banks and Airlines as two other examples. They’re both hated.
Worse, these greedy businesses are only fueling the call for Socialism or outright Communism by people who don’t understand these are even worse alternatives.