...while Daily Sprawl tries to avoid too much anecdotal evidence related to Peak Energy challenges (after all, while often compelling, anecdotes sometimes are not actually representative of a trend), a recent Daily Sprawl conversation with someone in the rental car industry is worth noting.
The two interesting points to come out where these:
1. More and more customers are declining upgrades from the small cars they reserved to high level cars such as Yukons or Cadillacs. I remember in the not too distant past where Upgrade coupons at rental car agencies could even be sold on web-auction sites. Now, it's a quick "No, Thank you" when the rental car agent offers to upgrade from a Ford Focus to a GMC Yukon.
2. At least one major rental car agency is seriously considering a major flip-flop: smaller cars will cost more to rent than large ones. The reason is simple...very little rental demand for full size, SUV and luxury class vehicles leave the sitting on the lot generating no revenue for the rental company. Just imagine that the same Ford Focus might cost $40 per day with the Yukon costing only $20.
These are very strange days indeed. Most peculiar.
