Large Market Buyers See Little Negotiating Room with Rental Companies
Small operating margins mean rental companies have less room for negotiating rates than hotels and airlines.
Car rental companies have had trouble in the past negotiating with too-high volume customers that ultimately hurt them, according to Business Travel News.
In addition, car rental companies operate on such small margins that they have less room for negotiating rates than hotels and airlines, said Neil Abrams, president of car rental research firm Abrams Consulting Group. Another reason car rental rates are tough to negotiate is that governments continually target the industry with local and state taxes to fund projects such as sports stadiums. In some cities, these taxes and fees actually come close to equaling the actual rates.
Because of those factors, large market buyers would be better off looking at add-ons and favorable contract terms rather than focus on negotiating rates, Abrams said. Areas to consider in negotiations include last-vehicle availability, insurance coverage, GPS equipment, fuel pricing or midweek pricing versus weekend pricing, Abrams noted.
Large market buyers could also consider a policy requiring travelers to refuel their own cars before returning them in most cases, rather than making them pay refueling fees.
But despite the challenging business environment for car rental, the industry has remained stable, making it unlikely that buyers will be able to reduce significant amounts from their car rental rates this year, Abrams said. A Business Travel News survey of large market buyers showed them spending an average of $40 on daily rentals for midsize cars in 2008, not counting taxes or fees. Corporate Travel 100 buyers in 2008 paid a rate of $37.80 on average for midsize car rental, and that number has changed little in the last decade.
More Rental Operations

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform
The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.
Read More →
Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry
A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.
Read More →
Government Affairs Executive Wins Leading Rental Car Industry Award
Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.
Read More →
Green Motion Expands Its African Presence with Mozambique Launch
This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.
Read More →
RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech
Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.
Read More →
NextPass Expands Toll Payment Service to Highway In Toronto
Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.
Read More →
Zubie, PurCo Integrate Rental Damage Detection With Telematics
The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.
Read More →
U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026
LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.
Read More →
Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services
The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.
Read More →
Why Car Rental Can No Longer Run On Workarounds
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
