The Post-Covid Dog Club Economy

Click here to read the complete article
74 – August, 2021

By Wayne Cavanaugh

As anyone who has tried to rent a car lately knows, prices are astronomical, availability is rare, and even if you do find a reservation and book it in advance, it doesn’t mean there will be a car available when you arrive. Gold Levels and long-term, loyal customers get shut out just as easily as anyone.

In the early days of the pandemic, people weren’t flying so they had no need to rent cars when they reached their destination. The car rental agencies made what seemed like a sound and practical business decision. To keep their businesses afloat, they sold off a good chunk of their fleets for cash flow. No problem? The plan was to purchase new cars to replenish their fleets when things calmed down and their customers started renting cars again. Then technology and a new economy threw the rental companies a wicked curve ball. Automakers still can’t produce enough cars for rental car companies and individual consumers to purchase.

The problem, as we’ve all read by now, is a global microchip shortage. Apparently, the auto industry never saw it coming–even though the most basic cars today are chock full of electronics that are controlled by computer chips. No chips, no cars. The rental company’s shortage of cars continues to be like nothing they’ve ever experienced. Accordingly, car rental availability is forecast to remain scarce, and prices will remain high for well into next year. Of course, there is no guarantee the rental companies will go out of their way to reduce future pricing when production and inventory are back to normal anyway.

To add to the travel economic misery, the airlines took a huge hit. Planes sat empty, near empty, or idle for nearly a year. The airlines remained in business by cutting staff and running on the thinnest of margins. Now that flying has returned, they are aggressively making up for lost revenue with some of the highest ticket prices we’ve ever seen. After struggling to exist for such an unexpected time, airlines are eager to leverage supply and demand as everyone returns to air travel with gusto. In many regions, $300 coach flights have nearly doubled. I recently purchased a west coast flight with three connections to save a club money and the cost was still nearly twice as high as a non-stop flight last year. Of course, the check-in process and security lines are increasingly long and crowded as well. Ah yes, the romance of travel!

Click here to read the complete article
74 – August, 2021

Short URL: https://caninechronicle.com/?p=208660

Posted by AnthonyA on Aug 8 2021. Filed under Current Articles, Featured. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.