Avis Budget Says No to No-Show Fees

The head of Avis Budget Group said the company does not plan to implement no-show fees for U.S. car rentals in the future. Instead the company will focus on other strategies for fleet optimization, such as pre-payment, according to Business Travel News.

Avis Budget has tested no-show fees for small-market, non-corporate business, and has the systems in place to handle the fees. However, the company does not plan to roll them out further, according to Ronald Nelson, Avis Budget chairman and CEO.

"We've slowed it down, because there hasn't been industry acceptance of it yet," he said to Business Travel News.

Instead, Avis Budget will focus on the pre-pay option it has in several markets. With this option, renters pay rental costs upfront and receive a rate discount of between 5 percent and 15 percent, Nelson said. Since it's less likely travelers will cancel a paid rental car booking, the system accomplishes the same result as no-show fees, according to Nelson.

"For us, it's never been about getting more revenue," he said to Business Travel News. "It's been about managing our fleet. It's the same issue, but you're looking through the prism on the other side."

Avis Budget still plans to use no-show fees for large events, such as major conventions and the Super Bowl as well as rentals of specialty car types, Nelson said.