My lowest price last trip was combining the car rental with a hotel stay at Priceline.

By using the car rental option on hotels.com, I have been able to benefit from prices that are at least 1/2, and often 1/3 or less than the car rental sites.

I just looked at the “stackexchange” conversation that is citation 6 in the Perplexity answer.

At stackexchange, the question was the same as yours, but the renter received a 60% discount. That’s quite a bit, though not as much as yours. Still, I’d say close enough for jazz, or a blog comment.

Below, I’ve copied the reponse that might fit your situation. Please note that the responder begins by writing “It is, of course, impossible to say … ”

____________________

stackexchange response:

“It is of course impossible to say what happened exactly in your case, but in other situations where I have come across similar savings from brokers, not only restricted to car rentals, but also hotel rooms and flight tickets, the broker often has had a ‘minimum use’ clause in their contract.”

“It may for example be, that the broker is managing 100 cars from the rental company’s fleet and is additionally guaranteeing that at least 20 cars are in use at any time, if not, the broker may be required to pay the rental company for the use anyway as had the car been rented out. If the broker now realizes that it can’t realistically expect to rent out 20 cars at a profitable rate due to low demand, the broker may decide to drop the rate so low, that they are in fact selling with a loss, but is still minimizing their losses.”
____________________

A few comments here are a bit similar to the stackexchange response, even if no one else has used the phrase “minimum use clause.” Maybe there’s a loose consensus.

I also like grandpagrumble’s suggestion that hotel.com made a mistake.

P.S. Hope you had a good trip. Starting it off with a car rental discount must have been a good omen, even though it’s hard to accept that you might have been just a cog in a fleeting low demand / high supply situation.

I’d say “nice try” to AI, because as in my answer above to Sandra, it couldn’t explain the enormity of the discount. The price I got was between 75% and 90% off the regular price.

I had a tiny number of those – nothing that would explain the enormity of the discount.

I know this takes the fun out of reading a blog; but, for better or worse, I had an answer in much less time than it took me to type the question. I know there’s a faction of anti-AI commenters here, but maybe I can wear them down.
______________________________________________________________

The significant price difference between renting a car through Hotels.com and major car rental companies like Enterprise can be attributed to several factors:

1. Business Model Differences

Third-Party Brokers vs. Direct Rentals: Websites like Hotels.com often act as third-party brokers that aggregate deals from various rental companies, allowing them to offer competitive pricing. They can negotiate bulk rates with rental agencies, passing on savings to consumers[6].

Dynamic Pricing: Major rental companies may implement dynamic pricing strategies that adjust rates based on demand, location, and other factors, which can lead to higher prices during peak times[4].

2. Additional Fees and Charges

Hidden Costs: Major car rental companies frequently add numerous fees (e.g., airport surcharges, fuel charges, insurance) that can inflate the final rental cost significantly. In contrast, third-party sites may present a more straightforward pricing structure without these additional fees upfront[4][6].

Insurance Options: When booking through a broker, customers may have the option to include insurance at lower rates or have it covered by credit card benefits, which can further reduce costs compared to purchasing insurance directly from the rental company[2].

3. Location Factors

Airport vs. Off-Airport Rentals: Renting a car at an airport typically incurs higher costs due to location-based fees. In contrast, rentals booked through third-party sites may often be sourced from off-airport locations where prices are generally lower[4].

4. Promotions and Discounts

Special Offers: Hotels.com and similar platforms frequently run promotions or discounts that are not available when booking directly with car rental companies. These offers can significantly lower the overall cost of renting a vehicle[6][8].

5. Consumer Behavior and Market Competition

Increased Competition: The rise of various online travel agencies and peer-to-peer car rental services has increased competition in the market, prompting traditional rental companies to adjust their pricing strategies to remain competitive[2][6].

Consumer Preferences: Some consumers prefer the convenience of booking through a single platform for both accommodations and rentals, which can lead to better deals as part of package offerings[3].

In summary, the lower prices available through Hotels.com compared to major car rental companies can be attributed to differences in business models, additional fees imposed by direct rental agencies, strategic pricing practices, promotional offers, and increased market competition.

Citations:

[1] https://www.choicehotels.com/choice-privileges/avis-budget
[2] https://www.reddit.com/r/turo/comments/t5i6pv/why_would_you_choose_toro_over_rental_car_company/
[3] https://www.booking.com/cars/index.html
[4] https://www.nerdwallet.com/article/travel/is-it-cheaper-to-rent-a-car-at-the-airport
[5] https://www.expedia.com/Car-Rentals-In-The-Woodlands.d6932.Car-Rental-Guide
[6] https://travel.stackexchange.com/questions/169411/massive-price-difference-between-broker-and-rental-car-company
[7] https://www.expedia.com/Car-Rentals-In-Houston.d178265.Car-Rental-Guide
[8] https://www.nerdwallet.com/article/finance/find-cheap-car-rental
[9] https://www.hotels.com
[10] https://travel.stackexchange.com/questions/34890/why-are-round-trip-car-rentals-much-cheaper-than-one-way-car-rentals