Hertz Global Holdings Inc. announced Feb. 9 it has implemented price increases, which are in effect for retail rentals beginning Feb. 9, 2009 and all dates forward, at North American airport locations. Specifically, retail car rental rates have been increased by $5 a day and $30 a week. The company's negotiated contract rates are not affected by this announcement.
Mark P. Frissora, Hertz's chairman and chief executive officer, commenting on the pricing action, said, "We are implementing a retail price increase to move rates closer to last year's levels. We have eliminated more than $500 million of costs over the past two years as we right-size the business to current conditions and reengineer key processes to operate more efficiently. Despite aggressive, ongoing efficiency initiatives, we nevertheless need a modest price increase to help overcome a difficult operating environment with higher vehicle depreciation costs, including lower used car values, and inflation in other key areas such as vehicle maintenance and repair.”
The company noted that, prior to implementing these increases, its U.S. pricing was, on average, 2 percent lower over the past 12 months.