Car Rental Conditions in Different Countries

May 18, 2012 2:22 pm

You may be familiar with renting a car if you travel on business in your country or just need a temporary replacement while yours is in the shop. But if you need to rent a car while in another country, there are general car rental conditions that can vary significantly by country. Even if you use an international car rental company, the conditions outlined in your rental agreement may include requirements specific to where you plan to drive the car.

Driving Limitations

Renters may be restricted on where they can drive a rental car depending on the country they are in. If you drive in restricted areas, not only do you face paying high fees, you risk voiding your insurance coverage. There may be limits on the number of miles you can drive or a maximum distance from the rental company you are permitted to drive the car. These may be strict limitations that are non-negotiable or they may be allowed as long as you are willing to pay additional fees. To enforce these conditions, rental companies rely on GPS technology which is installed in their rental cars. Some countries may actually require renters maintain a particular speed limit which they monitor through the GPS. There are countries that have no driving restrictions and allow unlimited mileage which is included in rates.

Driver Requirements

Every country has established minimum driving ages which some car rental companies use for their driver requirements. However, it is not unusual for the rental age to be higher because of liability. The biggest difference in driver requirements that exists between countries is the driver’s license. International rental companies will ask which country issued the driver’s license. Many do not recognize licenses issued from other countries and require renters to secure an International Driving Permit. The Permit must be presented to the car rental company along with the driver’s license.

Car rental and Insurance

The types and costs of insurance can vary greatly by country. In countries like the United States and Canada, it is up to the renter to purchase additional insurance when renting a car. Car rental companies in countries in the Middle East, Europe, Australasia, and even Europe typically include specific insurance in their rental rates. These insurances cover third party liability, theft, and the general Collision Damage Waiver (CDW). Excess insurance is common in these countries. It is a type of coverage that is similar to a deductible and is intended to dissuade renters from filing damage claims. This particular charge, while not widespread, has been introduced in the United States or Canada. But can be challenging to add these new insurance fees in the United States because insurance is often regulated by individual state laws. The more you know about international conditions when renting a vehicle in another country, the better chance you have of getting a cheap car rental. By fully understanding typical fees and charges you can decide where to cut costs and still have a positive car rental experience.

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Cheap Air Tickets

May 18, 2012 2:17 pm

In the current economy, travelers actively seek ways to save money. Cheap air tickets are the top of their list as this is often the greatest expense of travelling. There are several ways you can find these tickets that allow you to save money so you have more cash to spend when you reach your destination.

Travel Agency

Travel agents are experts at finding low airfare and the best routes for travelers. But they are not free which means you will have to pay for the benefit of their expertise. This can be money well spent or a complete waste of your resources depending on the outcome. If you already have a relationship with a travel agent, you may be able to get discounts on their fees for being a loyal customer.

Airline Websites

This is not a bad option if you are loyal to a particular airline. If you are, there is no sense in looking at tickets available through other airlines. You can use your airline’s website to find inexpensive tickets and to reserve your seat. Airlines typically offer discounts to frequent flyers and loyal customers. And you can find last minute deals on their website.

Online Comparison Websites

Many websites exist that allow you to comparison shop for the best tickets. All you do is enter your travel information including departure and destination locations, the days you want to fly, and where you wish to sit on the plane, and you will receive quotes from various airlines that have tickets available that meet your requirements. It is important you use a reputable site and read all of the fine print which details the conditions of your purchase. Some sites do not allow refunds so if you are unable to use your ticket, you may have to eat the cost.

Each option offers benefits and drawbacks to customers. It is up to you to determine what comprises a good deal for you. Once you do that, you can take advantage of these opportunities to look for cheap air tickets until you find the one that is right for you. Do not get hung up on trying to find the absolute lowest price. This will consume your time when you can settle on a great deal that may not be the lowest one available. With a little work, you can find cheap air tickets.

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Fuel prices and hopes for cheap air tickets

May 16, 2012 6:39 pm

For running an airline you need the fuel to put in the tanks. The supply of oil is normally steady and the price predictable. Unfortunately, instability among the oil producers means prices are volatile. In particular, the potential conflict with Syria has forced a price rise. Should Israel attack and Syria retaliate against tanker traffic, the world would quickly find itself short of fuel. The International Air Transport Association, the trade association representing airlines, has predicted its members will struggle to break even in 2012. Some of the European airlines are looking at record losses with two already insolvent: Spanair based in Barcelona and Malev based in Hungary.

The problem is that fuel represents about one third of operating costs. When you add in the cost of servicing the debt on buying the airplanes and paying the staff, there’s very little left. With many tickets sold forward, sudden rises in fuel prices may mean the planes flying at a loss when the passengers actually turn up.

All this means airlines are not going to survive unless two things happen. With no sign the international political situation is going to ease any time soon, there are two other factors likely to affect ticket prices. If passenger numbers fall, bankruptcy for more airlines will follow close behind. The only relatively bright prospect on the horizon is the strength of air cargo. It has been steady for the last two years even though the world markets have been trading well below their best. The second issue is the European move to impose a carbon tax on air travel. This is going to drive up ticket prices for anyone flying into or out of Europe, i.e. it’s payable simply because the airplane lands in Europe. With no sign of a global solution to the problem of how to protect the environment, this unilateral tax rise by Europe has angered the rest of the world.

The first is that peace returns to the oil producing parts of the world. The second is that outside costs like airport fees and carbon tax charges are kept to an absolute minimum. Anything that deters people from flying puts profits are risk. If the unions will not cooperate in reducing the rates of pay, ticket prices must rise. This further drives passengers away and the cycle into insolvency edges closer. The only way we get air tickets back is by seeing an expansion in the number of low-cost discount carriers, and a general return of confidence from customers. Without there being real demand for seats and losses looming, legacy airlines cannot afford to discount seat prices.

Is cutting air ticket prices real?

All that does is make the losses bigger. Lower prices can only come when historical costs are reduced. That’s why so many airlines are trying to cut pension obligations. These legacies from the boom years are a major drag on profits. So, your best hope for cheap air tickets is a victory for the airlines in their battles with unions and government regulators whose job it is to protect pension rights.

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