Auto Rental News
MenuMENU
SearchSEARCH

Travel Buyers See Moderate Price Hikes for Rental Cars and Limo Service

Travel buyers are now negotiating costs for insurance and energy surcharges. Unlike the car rental industry, black limo users are benefiting from excess capacity.

by Staff
November 25, 2009
2 min to read


Prices for rental cars and limo service are expected to see a moderate increase next year, but as airport fees, energy surcharges, insurance and taxes add even more to the cost of ground transportation, buyers are negotiating these fees with suppliers, according to purchasing.com.

As demand for business travel has dropped off over the past year, demand for rental cars has also dropped. In addition, the crisis in the financial services industry caused a drop in demand for black car limo service.

Ad Loading...

Travel management companies say buyers can successfully negotiate agreements with car rental companies and black car limo services by knowing their companies’ spending on these categories. The suppliers themselves and corporate card companies are good sources for mining the data.

Travel buyers can also negotiate costs for insurance and energy surcharges. Other costs to consider include no-show fees and new charges for extended rentals. Large penalties may be assessed for smoking in a non-smoking car. To keep some costs down, travel buyers can pick up rental cars at off-airport locations, especially for long-term use, eliminating on-airport charges.

Demand for black-car limo service has started to pick up a bit, says Gregg Tuccillo, CEO and founder of Hackensack, N.J.-based Global Ground Automation, which processes transactions for black car limo service. Tuccillo says he sees an increase of 45 percent from this past August to September. A seasonal drop in demand for black car service often occurs in the summer months, but increases around 20 percent in the autumn.

Tuccillo says businesses around the country are starting to gain confidence and are working to find new business, but appears to have little impact on 2010 pricing. Travel buyers will benefit from excess capacity in the industry and can negotiate prices, causing pressure on those prices for the next 6 to 18 months.

More Rental Operations

Two execs hold up a sign with Southwest and CarTrawler logos

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 →
Speaker John Healy on stage with a podium, screen, and red curtains in the background.
Rental Operationsby Martin RomjueMay 27, 2026

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 →
Award winner on stage with presenters in front of yellow curtain.
Rental Operationsby Martin RomjueMay 27, 2026

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 →
Ad Loading...
The rental car team at the Green Motion franchise office near the Maputo International Airport in Mozambique.

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 →
Photos of CEOs Colm Brady and Francois Kruger on a blue background and above a headline.
Telematicsby News/Media ReleaseMay 22, 2026

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 407 ETR

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 →
Ad Loading...
A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

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 →
50 states map showing LOR rates for each state with different shades of light to dark green

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 →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

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 →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

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 →
Ad Loading...