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.
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.
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

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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
