Why are car rentals in Switzerland & Austria so expensive (yet so cheap in Italy)?

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Switzerland is one of the most expensive countries in the world. Most things are more expensive there.

A meal at McDonalds starts at around 10 euros for the most basic budget version, if someone is earning 20-30 euros an hour they’re considered very lowly paid.

Austria isn’t quite so bad, but after the Nordics and Switzerland it is probably the most expensive country in Europe.

Italy on the other hand tends to be fairly cheap for a rich first world country.

In terms of hidden taxes and fees beyond the general Swiss-premium, there is the motorway vignette in Switzerland, a pass which costs 40 CHF a year and is necessary if you wish to use Swiss motorways. This is included in the cost of rentals within Switzerland but not from third countries.

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Why are car rentals in Switzerland & Austria so expensive (yet so cheap in Italy)?

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