Rental Car Sector Reports a Surge

Hertz Global Holdings Inc. reported that demand for rental cars has grown as vacationers are traveling to destinations within driving distance of home and foregoing flights, causing a jump in demand for vehicles.

After Hertz provided investors with an outlook that far exceeded Wall Street’s expectations, the rental car sector surged on June 25. Avis Budget Group Inc. and Dollar Thrifty Automotive Group Inc. received an even bigger boost. Dollar Thrifty shares rose $2.66, or 24.2 percent, to $13.60, after setting a 52-week high of $13.92 earlier in the session. The stock was at a 52-week low of 60 cents in early March.

Hertz Chairman and CEO Mark Frissora said that people in the U.S. and Europe are “staying local when they travel.” In the U.S., reservations for the July 4 weekend are up year-over-year. Vacation spending has also benefited from the deep discounts now being offered by hotels.

Hertz’s equipment rental business, however, has continued to soften, Frissora said. “We may not see an upward turn in this thing until the fourth quarter,” he said.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Five Business Model Trends for 2017

As new forms of mobility take flight, the borders with traditional car rental are starting to erode.

Are Commercial Drone Deliveries Eminent in the U.S.?

Amazon just delivered its first package by drone in England. Will U.S. delivery fleets be able to take advantage soon?

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

Job Finder: Access Top Talent. Fill Key Positions.