Abrams Report Cites Airport Rates as Key to Rebound

LONG BEACH, Calif. -- Strong airport rates, attractive fleet programs from the automakers, and disciplined fleet management should help the car rental industry continue to build profitability, according to a new report from Abrams Travel Data.

With fleet representing about 40% of the overhead of a car rental company, competitive fleet programs should help the industry’s bottom line, said the latest edition of Car Rental Market Scan, published by Abrams Travel Data Services (ATD). ATD's Airport Rate Index shows that recent published rental rates have been about 10% higher than last year.

With fleet representing about 40% of the overhead of a car rental company, competitive fleet programs should help the industry’s bottom line. An improving used car market, which has been problematic for rental companies remarketing used risk units, is another positive sign for the industry.

This quarterly edition of Market Scan focuses on operations management topics, such as fleet management, labor rates, and technology development. The new edition also offers data and analysis on overall market conditions, organizational changes within major car rental companies, and statistical indicators on industry performance.

ATD is a business unit of Abrams Consulting Group, based in Purchase, N.Y. For more information, visit abramsconsulting.

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