PARSIPPANY, N.J. -- Avis Rent A Car System and Hertz Corp. have both ceased paying travel agent commissions on U.S. and Canadian corporate and government accounts with contracted rate agreements.

With each company, the new policy won't affect commissions for leisure car rentals, association rentals, or business rentals not bound to a contracted rate agreement. Neither will the change affect travel agency overrides and customer bonus programs.

"This policy change not only allows us to significantly reduce expenses, but also keeps our cost base level with our primary competition," said Bob Salerno, president and chief operating officer of Avis Rent A Car System Inc. "While we recognize the impact of this move, we believe that its targeted structure means it will have a minimal effect on the majority of our travel agency partners."