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Travel Industry Sector High Fuel Prices Affecting Rental Car Agencies

The travel sector is very worried over this possible $4.00 per gallon gasoline prices this summer due to the showdown in Iran and the 2006 Atlantic Tropical Season causing such price spikes. Can the travel industry; including airlines, hotels and rental car agencies handle oil barrel prices trading at $85.00 per barrel? Hard to say, but consider what happened to the travel industry after 9-11?.There were some major changes in Rent-A-Car Agencies after 9-11 and completely new dynamics. There is a significant difference between pre 9-11 and now in the Rent-A-Car Industry.

And there are also such issues expected at four plus dollars per gallon as well.You see, immediately after 9-11 all Rent-A-Car agencies nearly ran out of cars in many cities as travelers were stranded by grounded airlines. Many opted to rent a car and drive home from all over the country.

Not only was their entire fleet rented out, but many people drove the vehicles from places like New York City and Boston to San Francisco and Los Angeles adding 4000 miles to the cars and causing them to 'run out'.Now consider if two more airlines file bankruptcy due to super high jet fuel prices as travelers decide to stay home? Or what will happen if no one wishes to rent a car or so few people that those cars remained parked? After 9-11 several smaller hotel chains and many car rental corporations filed for bankruptcy and so this is a huge issue with $4.00 per gallon gasoline this summer in 2006.

."Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/.

By: Lance Winslow



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