Dispelling Some Myths in the Car Rental Industry
As Auto Rental News embarks on its 25th anniversary year, I find that nostalgia is a seductive liar.
In 2013, Auto Rental News celebrates 25 years of publication. Anniversaries are always a good time to take stock of where you’ve been and where you want to go. So I descended into the bowels of the building to the musty stacks of back issues for an education.
In perusing 25 years’ worth of magazines patterns started to form; cycles became clear; issues emerged and re-emerged. And some commonly held beliefs that I’ve heard throughout the years look more like myths with the benefit of time:
“Car rental rates aren’t equal to the value of the service.”
It’s been a favorite pastime in editorials and letters to the editor in this magazine: “Why do tuxedos and floor sanders rent for so much, and a car for so little?” This ignores the big picture.
Compared to 25 or 15 years ago, sophisticated yield management systems today are keeping cars out on rent more often. Rates are adjusted on the fly to match supply with demand. You’re no longer flying blind to the market around you.
A better analysis would be to track your revenue per month and make sure your expense ratios are in line and that your fleet costs don’t get out of whack. The good news is that today you have tools to better control these things — while you’ll never control the rental rate of a tuxedo.
“There is so much turmoil today; it wasn’t like this when I started.”
This phrase has been uttered often through the years, by rental operators and editors alike. But in perusing back issues, was there really a year that wasn’t full of turmoil?
In our first year, the big story was the push by the airports to assess fees from off-airport rental companies picking up airline passengers. Off-airport companies suddenly had new fees tied to revenues and it pitted the big on-airport companies against the upstarts. It wasn’t pretty.
In those early years we devoted countless articles to the licensing or all-out ban on the sale of collision damage waivers (CDW) as countless state legislatures took up the cause.
From 1995 to 1997, seven of the top car rental companies were sold to new owners or went public. After that, issues such as vicarious liability, caps on a renter’s damage responsibility and the rise of excise taxation threatened the very existence of many companies.
We’re busier today than ever, but we learn to adapt only that which we can handle. Expect turmoil and build change into the business plan.
“I pay my association fee, but nothing ever gets done.”
The evidence is to the contrary: In our first year the American Car Rental Association (ACRA) was victorious in defeating the all-powerful National Automobile Dealer Association and its proposal to end discounts for fleet sales to car rental.
Also in 1998, the state of New York passed a bill that banned the sale of CDWs and limited the renter’s liability to $100 in damage costs. The New York Vehicle Rental Association was instrumental in getting the bill amended.
ACRA and other coalitions fought for years to defeat unlimited vicarious liability. In 2005, the federal highway bill eradicated it.
But the greatest successes may have been putting the brakes on legislation that never passed, such as the predatory taxes, fees and surcharges heaped on the industry in the past 15 years.
Through the years ACRA has managed to affect positive change for the industry, and today, it is the strongest it has been in many years.
“The industry was in a much better place back then, sigh.”
Consider that Yugo no longer advertises in ARN as having “the best new car protection of any subcompact sold in America.” Articles no longer equate the cost of a good computer system to a manager’s yearly salary. Rental is no longer the dumping ground for manufacturers’ overcapacity. Automation has leveled the playing field and provides an unprecedented level of transparency.
“It was better back then?” Hogwash. Nostalgia is a Norman Rockwell painting, re-creating a past that never existed. It is a seductive liar. So let’s use the past to look to the future and have this conversation after another successful 25 years.
This post originally appeared as a blog post from ARN's Executive Editor Chris Brown. You can see other posts from him on his Auto Focusblog.
Other articles from the January/February magazine issue can be viewed here.
More Rental Operations

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?
With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.
Read More →
What Does It Take to Succeed in B2B Rentals?
The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.
Read More →
NPR Builds on International Partnerships to Grow Rental Bookings
With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.
Read More →
Advantage, Sixt Place Among Top Five in Annual Satisfaction Study
While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.
Read More →
The $100,000 Insurance Trap in Exotic Car Rentals
Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.
Read More →
The Booking Is Confirmed, But Is Your Customer Ready to Drive?
For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.
Read More →
ICRS 2027 Opens Call for Papers
The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.
Read More →
Turo to Launch Vehicle Delivery Service
Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.
Read More →
Palm Beach Airport Code Change Creates Car Rental Distribution Gap
A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.
Read More →
U-Save Continues Dominican Republic Expansion with Launch in Punta Cana
The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.
Read More →
