The Hidden Cost of Prestige: Why Luxury Car Rentals Command Premium Prices

The market demand for luxury rentals is also relatively inelastic; customers seeking these vehicles are generally less price-sensitive and are motivated by unique experiences or necessity (e.g., a major business pitch). Rental companies employ dynamic pricing models that heavily leverage this demand. During peak periods, like Formula 1 races, film festivals, or major summer holidays in glamorous locations, the daily rate can surge dramatically because the market will bear the cost.