Comments on: Will airlines start unbundling fuel entirely from the fare? http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/ Living the first class life -- at coach prices Sat, 10 Jan 2009 00:59:13 +0000 hourly 1 By: Brian http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/comment-page-1/#comment-18997 Brian Sun, 06 Jan 2008 04:01:56 +0000 http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/#comment-18997 To some extent rental companies actually do let you hedge for fuel, on a small scale, with their "fill the tank upfront" deals. They offer seemingly good per gallon rates if you pay to fill up the tank at pick-up. They win as long as rates don't skyrocket before you return the car. Of course they REALLY win if you return the car with the tank half-full. It's possible to beat them at their own game, but it takes a lot more planning to return a car on fumes than it does to return it at what appears to be full. To some extent rental companies actually do let you hedge for fuel, on a small scale, with their “fill the tank upfront” deals. They offer seemingly good per gallon rates if you pay to fill up the tank at pick-up. They win as long as rates don’t skyrocket before you return the car. Of course they REALLY win if you return the car with the tank half-full. It’s possible to beat them at their own game, but it takes a lot more planning to return a car on fumes than it does to return it at what appears to be full.

]]> By: Randal Oulton http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/comment-page-1/#comment-18985 Randal Oulton Sat, 05 Jan 2008 20:04:43 +0000 http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/#comment-18985 Gee, what if you bring your own fuel? Gee, what if you bring your own fuel?

]]> By: Mark Ashley http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/comment-page-1/#comment-18949 Mark Ashley Fri, 04 Jan 2008 17:53:06 +0000 http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/#comment-18949 Andy, I don't know of any way to hedge fuel for the car in any practical way, as an individual. You could buy futures contracts on gasoline, but that's really an investment, not an actual purchase of consumer fuel. On their own, drivers aren't large enough customers for the hedging market. Years ago, Priceline had a gasoline product that would let you prepay for gas and lock in a price. You could bid a specific price per gallon and the number of gallons you'd purchase. If you won your bid, you'd a participating station and fill up. I did it a few times, and it worked well, since there were several Amoco stations in my area that participated, but the time spent on the bidding exceeded the value of the savings on the fuel. Andy, I don’t know of any way to hedge fuel for the car in any practical way, as an individual. You could buy futures contracts on gasoline, but that’s really an investment, not an actual purchase of consumer fuel. On their own, drivers aren’t large enough customers for the hedging market.

Years ago, Priceline had a gasoline product that would let you prepay for gas and lock in a price. You could bid a specific price per gallon and the number of gallons you’d purchase. If you won your bid, you’d a participating station and fill up. I did it a few times, and it worked well, since there were several Amoco stations in my area that participated, but the time spent on the bidding exceeded the value of the savings on the fuel.

]]> By: Andy http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/comment-page-1/#comment-18947 Andy Fri, 04 Jan 2008 17:11:47 +0000 http://www.upgradetravelbetter.com/2008/01/03/will-airlines-start-unbundling-fuel-entirely-from-the-fare/#comment-18947 Interesting that you compare it with rental cars or private vehicles. I don't know of any provider who would offer hedging for car fuel. Is it because it's a smaller market and there are so many gas stations? With three cars in the family I personally spend several thousands... Interesting that you compare it with rental cars or private vehicles. I don’t know of any provider who would offer hedging for car fuel. Is it because it’s a smaller market and there are so many gas stations? With three cars in the family I personally spend several thousands…

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