ME vs. Car Rental

[SteveS]

I hear all the whining and crying coming from the rental car and limo companies about loosing business to ME. They complain that ME is hurting their business. I suggest that it isn’t ME that is hurting their business it is simply the fact that they don’t know how to complete in the newly redefined market at MCO.

We travel to WDW several times a year. We always rent a car because it has always been the best alternative for us because we like the freedom. I have an upcoming trip and I am amazed at how much the car rental rates have sky rocketed as compared to previous trips. It has forced me to reevaluate ME as an option. I have decided to use ME for a short trip over Thanksgiving vs. paying outrageous car rental rates.

If the car rental companies want to compete with ME they need to do so on the basis of cost and flexibility. Raising their rates, as I have seen only drives more and more people to using ME as a viable transportation option.

 

[we're all mad here]

Agreed, the basic principle of supply and demand. As demand decreases, as the rental companies claim, supply should increase and prices should fall. We have done Disney both with and without a rental car but next week we are using ME.

If I had time I would see the MCO pax stats and compare it with the ME pax stats and see what % of the MCO pax use ME. My guess is that it is less than 5%.

 

[Lewisc]

The rental agencies can't compete on the basis of cost, DME is free.

The rental agencies have to cover their fixed costs over few rentals which means higher rates. Supply and demand suggest they reduce the number of cars. They are also doing a "better job" of charging a premium for holiday weeks.

Price sensitive guests, staying at a WDW resort, are going to use DME. Other transportation companies are going to need customers who are willing to pay a premium.

I don't even think DME is used by 10% of the total passengers into MCO.

Limo companies are probably taking a bigger hit than the car rental agencies. On-site guests can rely on WDE transportation. Off site guests are generally better served renting a car.