An analysis of midweek rentals booked in September on AutoSlash.com found that customers were paying about $97 a day in NY, compared with $45 in L.A. and Miami, and $40 in Vegas. Why the diff? From the NYT:
The cost of doing business in different markets is a big factor -- including labor, real estate and the price to insure a fleet of cars. Varying tax rates can also affect the final bill, especially in places that levy special taxes on car rentals. But the number of car rental companies that serve a particular market also plays a significant role in price. And competition is a growing issue as the industry consolidates and leaves just a few dominant companies that each own several car rental brands.
Jonathan Weinberg, president of AutoSlash.com, explains that in L.A. "you have so many different vendors at the airport, and many are low-priced value providers." The heavy competition tends to drive prices down.
Richard Broome, a senior vice president with Hertz, acknowledged that the company reacted to rates set by competitors, especially the discounters that compete with Hertz's Advantage brand. "The more competitors you have in a market at an airport, the more pricing competition you would expect," Mr. Broome said, though he also cited operational costs and basic supply-and-demand issues as rate factors.