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  • Description of Supply and Demand within the US as It Relates to the Travel Industry and Auto Rental Industry post 9/11

     

    Essays2 Economics

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ID number:442278
 
Evaluation:
Published: 17.11.2002.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

In the past year the auto rental industry has seen many changes. Fewer customers, increased insurance costs, an overabundance of available rental vehicles and a drastic reduction in vehicle value are just a few. Auto rental companies have tried to modify the way they do business in response to these changes. Nationally, rental companies have reduced rates, fleet sizes and number of employees in an attempt to find equilibrium within the market place. While the attached article was written before the catastrophic events of September 11, 2001, it does make an excellent case of what is happening now, albeit, in reverse. Supply and demand, as it relates to the rental car market, is a constantly changing entity. The demand for rental vehicles will vary depending on many factors: holidays, local events, season and others. …

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