An Analysis of national average car rental rates and economic indicators

Travel suppliers have depended largely on business travel astheir main source of business and profit because it is less priceconscious and finicky compared to the pleasure travel market. Thepast recession has caused corporations to scale-down by drasticallyreducing business related travel; therefore, it is understood, as amajority, that the condition of the economy usually dictates futurebusiness. Car rental companies are a significant part of the travelsupplier industry and it is wondered if the fluctuations in car rentalrates are a direct reflection of the rise and fall of the economy also.The study will use four key economic indicators (housing starts,retail sales, car sales and unemployment) as a direct reflection of theeconomy. Car rental rates will then be added to notice anycorrelation between the two.