Auto Rental News
MenuMENU
SearchSEARCH

Operator Outlook: New Rental Car Fleet Technologies

2025 ARN Fact Book: What do rental fleet operators see as the primary challenges on the tech and digital tools front?

Operator Outlook: New Rental Car Fleet Technologies

The car rental industry overall has been slower than other fleet sectors in embracing advanced telematics for their rental fleets, one operator told ARN.

Photo: Ford Pro

3 min to read


The rental car industry has a more complicated relationship with technology: Some operations are early adopters ready to find the most efficient tools quickly; others prefer to go it on their own with a mix of the old and new; and a few more take their time and only spring for a new tech if their comfort level matches it.

And like a household still relying only on broadcast VHF-UHF antenna TV, a handful succeed on their own terms with more basic tech.

Ad Loading...

Technology adoption among independents can be as varied as the markets they serve, while the corporate and franchised outlets use networks and direction from above.

As part of the annual Fact Book rites,Auto Rental News interviewed in detail a diverse business group of five operators for some insights into the state of the rental car industry and the markets it serves:

  • Bill Wallschlaeger, president of Midwestern Wheels Inc. (Avis and Budget), Appleton, Wisconsin; board director of the American Car Rental Association; president of Avis Budget Payless Licensee Association

  • John Dill, director of operations, Next Car/Priceless Car Rental, Laurel, Maryland

  • Paul Hemmert, director of airport relations, Fox Rent a Car/Europcar, Orlando, Florida

  • Michael Fathi, CEO, Hub Mobility Group (York Car Rental), Commerce City, Colorado

  • Gary Kolodziej, president of President of Midway Car Rental, Los Angeles, California

In Part 4 of the Operator Outlook series from the 2025 Auto Rental News Fact Book, the interviewees confronted a broad and basic question that will be posed for years to come: What tech options are either enhancing or challenging your operations?

At Midway Car Rental in Los Angeles, the focus has been on developing technology that improves customer experience and makes operations more efficient. During 2024, the company has been exploring and/or testing digital keys, genuine contactless rentals, counter bypass options, and AI integration, Kolodziej said.

Hemmert advocates for more use of telematics in rental fleets. “I am surprised by how slow the car rental industry has been in embracing telematics processes for their fleets. I would have thought by now that telematics would have made more inroads into the large car rental companies than they have done. I’m shocked when you look at everything telematics can do with a vehicle, and it’s not a bigger part of the industry. That will change.”

Telematics providers have a harder time selling to larger companies than to private, local fleet operations, said Hemmert, adding that Fox is now working with several possible telematics providers.

Ad Loading...

At York Car Rental, a software program provides reservation services and points of sale, Fathi said. The company keeps improving the system to help provide faster service to customers. York has sped up the pickup and drop-off process and inspections. “We try to get them to do advance paperwork digitally and online check-ins.

Paul Hemmert, director of airport relations, Fox Rent a Car/Europcar, Orlando, Florida, said he is shocked telematics is still only a small part of the industry. "That will change."

Photo: Fox Rent A Car/Europcar

“It’s a tough business,” Fathi said. “Everybody expects a brand-new car like at the big companies. You must provide service, rates, and everything better. We are trying to make the car rental pickup and drop-off process faster and smoother for the customers. We cannot cut off the rental counter process completely. There’s not enough technology out there. People also still want a human touch; not everyone wants contactless.”

Fathi said his technology approach frees up time to provide upselling and better customer service. The company upsells about 50-55% of customers and is getting more positive customer reviews.

Midwestern Wheels applies technology to better account for vehicle damage and hold the appropriate customers accountable.

“We use PurInspect,” Wallschlaeger said. “This service interacts with the customer and engages them in the process of accounting for vehicle condition at the time of rental and allowing them to be part of the process. Some AI damage detection products are testing the market for viability, and this product is emerging as a plus to operators but still needs some fine-tuning to replace human sight on the damage.” He added that driver’s license ID scanners help reduce fraud. One challenge is to stay ahead of the fraudsters’ tactics.

Ad Loading...

The use of data helps our operations make more accurate business decisions. “Our use of data analytics is making it easier to analyze pricing, fleet sales, and other aspects of our business to determine what and how many fleet vehicles to buy, sell, and price for our rental market.”


Subscribe to Our Newsletter

More Rental Operations

Paperwork sits in front of a black Lamborghini
Rental Operations•November 1, 2026

Clean on Paper: Red Flags in Exotic Car Rental Verification

A suspicious $45,000 Lamborghini booking reveals the strengths and limitations of renter verification, from forged insurance documents to coverage gaps and unauthorized drivers. (Part 2 of 3)

Read More →
display of Turo's FSD homepage
Rental Operations•by Chris Brown•October 28, 2026

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals

The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.

Read More →
Two identical rental cars, two different prices
Rental Operations•Cover Story•October 26, 2026

How Rental Operators Can Navigate Personalized Pricing Rules

As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.

Read More →
Ad Loading...
a laptop shows different connectivity paths for car rental supply
Rental Operations•October 23, 2026

Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars

As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.

Read More →
thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Ad Loading...
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
Ad Loading...
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...