Several rental-car agencies have recently started raising prices to reflect increasing operating costs.Hertz Global Holdings Inc. said in a press release that it has implemented price increases at its retail rental locations in North America and Europe as part of a restructuring effort begun last year to curb the effects of inflation, rising commodity costs, and a tough used-car resale market.
Enterprise Rent-A-Car, National Car Rental, and Alamo Rent-A-Car, all owned by the Jack Taylor family, have increased retail pricing over the past month at airport locations.
The moves represent the latest attempt by car-rental companies to remain profitable.
The firms have had to deal with fewer than expected travelers as airlines cut capacity and consumers have cut back on discretionary spending, in addition to reduced revenue from reselling used rental cars.
Hertz says car-rental rates will rise by an average of more than 10% in North American airport markets -- or more than $5 a day; 5% in U.S. off-airport markets, and about 10% in European airport and downtown markets.
Rate increases vary by location at National, Enterprise and Alamo, says spokesperson Laura Bryant.
Other companies are eyeing the moves.
"We are very enthusiastic about the announcement," says Chris Payne, spokesperson for Dollar Thrifty Automotive Group, Inc.
"It has been a very tough operating environment for all of us right now. We think it's a good move. We are going to wait and see what competitors do," and then consider raising rates, says Mr. Payne.
All of Hertz's price increases will be in place for reservations made on Nov. 10 and after.
Negotiated contract rates won't be affected by price increase at either Hertz or Enterprise, National, and Alamo.
