Auto Focus

Avis Releases Car Rental Rate Comparison

Avis Budget released an analysis of car rental pricing today. The intent is to show how Hertz's negotiated Auto Club (AAA) rate competes directly with Dollar Thrifty's business. The issue might be raised in any antiregulatory analysis of the proposed Hertz merger with Dollar Thrifty.

Hertz's AAA rate is a good one, 35-37 percent better than it's non-negotiated rates. On Avis's site, it advertises a 25 percent discount to corporate clients. I'm sure some Avis platinum clients get an even steeper discount; whether that approaches 35 percent I don't know.

While deep discounts by premium brands for members of large institutions (IBM, say) are a fact of life, this deal--to anyone with AAA card-- is to an almost non-closed market. How many renters is this? The analysis does not say, nor does it show the actual percentage of Hertz's business this AAA deal represents. So will this really sway regulators?

The analysis also does not reveal midweek (corporate) pricing, which would obviously tell a much different rate story.

This will be interesting to see: how will a Hertz/DTG merger affect negotiations with Hertz's corporate customers? With two discount brands in the fold, would Hertz's corporate clients want to use Dollar (and its lower rates) for a portion of their rentals? Any lower pricing given to corporate customers might be offset by new clients attracted to the brand because of Hertz's new discount offering.

At any rate, any published, comprehensive rate comparison between brands is always an interesting peek into the business.

Comments

  1. Rentacarmgr [ September 24, 2010 @ 02:47PM ]

    What a joke! the so called "analysis of car rental pricing" is nothing but a rate shopper breakdown that I can get any of my employees to gather in about 10 minutes. Or use any online search engine to do for me in seconds... I wonder how much they $pent on this high tech "analysis". Avis-Budget is throwing drowning-man kicks and they are so looking desperate to create any controversies, that they are looking ridiculous. Isn't there a smart CEO running them (or at least monitoring these joke analysis?) no wonder they are going bankrupt! Ha!

  2. Jim J. [ September 29, 2010 @ 02:45PM ]

    Actually, it took Avis about 1 minute to run the analysis. That's 1000 times more efficient than you. Avis has significantly driven the price up for Hertz, delayed the buyout, and forced them to divest Advantage. Isn't that a smart CEO move?

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Author Bio

Chris Brown

Executive Editor

Chris is the executive editor of Business Fleet Magazine and Auto Rental News. He covers all aspects of the fleet world.

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