May Rate Increase Appears Short-Lived

With the help of Jim Tennant of The Tennant Group and Michael Meyer of Rate-Highway Inc., we are conducting rate surveys on a weekly basis and providing analysis and comments where appropriate. We publish this monthly recap in our electronic edition and more comprehensive looks in the print editions.

In mid-May, Hertz Global Holdings announced it was increasing rates for its Hertz, Dollar and Thrifty brands for all rentals picked up after June 14. Hertz’s rate increase will be $5 per day and $20 per week at U.S. airports and $3 per day and $10 per week for off-airport rentals.

The published rate quotes are for pickups 15 to 21 days out, so June 14 and later pickups first showed up in the May 29 rate survey. However, like the attempted increase by Hertz in December, the results seem to be short-lived.

Rate quotes were relatively flat leading up to the mid-May announcement and then turned up moderately after the announcement. But based on the June 5th survey, the rates have turned down again.

One week does not constitute a trend, so we will have to wait for the rates for the rest of June to be certain.

Rate data provided by Rate-Highway, a leading provider of revenue management services for the auto rental industry. Rates are an average of aggregator/OTA rates for all vendors present in the markets listed on the date of the survey. These tables and graph show the average of all base rate quotes per day for an ICAR at the six or 50 airports shown, for arrivals 15 to 21 days ahead of the date of the survey, for two- and seven-day rentals.
Rate data provided by Rate-Highway, a leading provider of revenue management services for the auto rental industry. Rates are an average of aggregator/OTA rates for all vendors present in the markets listed on the date of the survey. These tables and graph show the average of all base rate quotes per day for an ICAR at the six or 50 airports shown, for arrivals 15 to 21 days ahead of the date of the survey, for two- and seven-day rentals.

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