Car Rental Continues as Leading Revenue Source for Airlines
Car rentals are among the top commission-generating services sold on airline Web sites, along with hotel bookings and travel insurance.
Car rental continues to be a top source of global ancillary revenue for airlines and the travel industry, according to a report shown on the Moodie Report.
The 13-page report, titled "Planes, Cars, and Ancillary Revenues," was conducted by airline ancillary revenues consultancy IdeaWorks.
The report on the $35 billion global car rental industry states that the health of the airline industry traditionally determines the success of any car rental company. Car rentals are among the top commission-generating services sold on airline Web sites, along with hotel bookings and travel insurance.
These commission-based services finished ahead of checked baggage, priority boarding, seat assignments and pre-ordered meals.
The report states that multi-supplier and broker methods provide more auto rental choices for consumers, while exclusive relationships limit brand choice to a single supplier.
The report lists Hertz as a leader in the category of exclusive deals. For example, it is the sole booking partner for Aer Lingus, Air France and Ryanair. The company paid €29.9 million to Ryanair for the carrier's fiscal year ended March 31, 2010.
Virgin Blue, which uses multi-supplier method, offers Europcar, Hertz and Thrifty as preferred partners along with more than 550 car rental suppliers. The report states that consumers respond positively to a larger choice of brands, vehicles, and prices.
Virgin Blue's policy of making car rental a part of the online booking process and by rewarding customers with bonus frequent flier points is a "best practice," according to the report. The airline's rental bookings increased 38 percent when it moved from a single supplier relationship.
To read the full report, click here.
More Rental Operations

Palm Beach Airport Code Change Creates Car Rental Distribution Gap
A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.
Read More →
U-Save Continues Dominican Republic Expansion with Launch in Punta Cana
The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.
Read More →
When AI Books the Rental Car, Who Controls the Sale?
As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)
Read More →
European Booked Car Rental Rates Fell 5%, Results Varied by Country
Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.
Read More →Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
