Olympic Notebook: $800 Rental Car Drops to $200

Saturday, 13 February 2010 | by Pat's Picks

We’ve just arrived at the airport in Vancouver after the glorious non-stop flight from Newark. ??(Ironic that we left and airport where you see snow in every direction to go to the Winter Olympics in a city that has none.)

Headed to the car rental counter now.?

I had an interesting experience last week and I suspect it won’t be the only time this happens this week. The price for my rental car dropped dramatically.?

We’ve been in Vancouver and Whistler every ski season for the past five. 90 percent of the buzz in Vancouver has been enthusiasm, excitement and community spirit. ?But there’s also been a somewhat distasteful element of greed.?

It’s not outright greed. This is Canada, after all. But as the games approached there was undeniably a sense among business owners and Investors that the Olympics were going to be their chance to jack up the prices and cash in.?

At the major hotels in Whistler, for example, you couldn’t just make an online reservation. You had to call someone who had been specially briefed on steep prices and minimum stay requirements.?

I talked to all of them months ago when I first started looking for two nights of accomodation. Most had rooms but would only offer them in 5 or 7 night blocks at double or triple the typical rate. ?I politely declined but asked to be put on a waiting list for the moment they got less greedy. (I didn’t verbalize the “greedy” part but that’s what I was thinking.)

Sure enough, about a month ago they started to call. “Two nights is possible now, Mr. Kiernan. We’ve had some rooms open up.”

They weren’t moving much on price, but I still felt like I’d scored a consumer victory with my bet that they had overestimated the premium visitors would pay.?

Whistler’s real estate market has been the same way. The Olympics are a big deal, but sellers have been expecting a huge premium for an event that only last two weeks.?

It’s not just pricing. Early indications said the predictions of unmanagable crowds were overplayed. ?I spoke to the staff at two Whistler hotels the day before the games opened and they said it was busy, but not crazy.

I understand how yield management pricing works. Hotels and rental car companies try to price to get top dollar out of their inventory. I don’t fault them for it. ?But typically they do that by starting at a mid-level price. If demand is strong as the event draws closer prices rise. If demand is soft you’ll see some discounting.?

When I first tried to book a car rental in August the pricing came in at between $700 and $1000 per week. I managed to find a tiny loophole with one of the few promotions that wasn’t blacked out for the Olympics. I booked a hybrid for about $500.?

Last week, on my hunch that the rental companies had been a little greedy with those rates, I logged on anew to see if I could do better. I was stunned at how right my theory was. The car that priced at $800 in August is mine for $200.?

I’m happy to contribute to the British Columbia economy while I’m here to enjoy the games. But I’m glad to have a few hundred extra dollars in my pocket to spend on souveniers.?

Now—bring on the greedy ticket scalpers. I’m hoping to find you holding a fistful of tickets that you thought you could sell for twice what you paid.