Rental car companies haven’t been immune to the economic woes hitting the rest of the travel industry. All the major companies reported 2008 losses, and Hertz reported a $1.2 billion loss in the fourth quarter alone.
But the industry woes don’t seem to be translating to lower prices. If anything, rates appear to be higher than last year, which is prompting regular complaints from clients. Some people, in fact, who often book direct have called just to see if we can beat the high prices they are getting.
First, why are rates still high, and why aren’t there the kind of specials the airlines and hotels are offering? For one thing, car companies usually make some money by selling their used cars, and that market has taken a real hit.
In addition, there seem to be fewer cars available. One week in February on Maui there were no cars available at the last minute, period, for any price, even at off-airport locations. Plus I have to think with gas prices lower, the agencies are not making as much on refueling charges. (While still high, the refueling prices are lower than last year, as are the prices to buy a full tank in advance.)
How can consumers still get good prices? Most travel agents have programs that search car rates, and may be willing to book a car for a very nominal service charge. (Or depending on the rental, maybe no charge. Car rental companies still pay a small commission.) An agent can be particularly helpful for car rentals in Europe, because the rental rules, insurance and taxes are especially complicated.
For do-it-yourselfers, don’t assume the smallest car is the cheapest. I have frequently seen specials on larger cars, even four-wheel drives, for lower than the economy car price. This isn’t true across the board, but it’s worth asking.
In the U.S., an easy option can be to book at an off-airport location. Taking a taxi or shuttle or public transit to a hotel and then picking up a car will save airport fees and taxes, which are often substantial. Even travelers staying with friends or relatives who still want a car can often find deals at local offices. (Enterprise and Hertz Local Edition are usually particularly good, and Hertz generally allows returns to the airport for no extra charge.)
And take advantage of discounts. AAA members usually can get at least 10 percent off many rates. and the booking doesn’t have to be made though a AAA travel agent. Also, most corporate discount numbers can be used for personal travel. And many airlines provide discount numbers to their frequent fliers.
Finally, for bookings made in advance, it doesn’t hurt to check closer to departure. Rates can go in either direction but most companies will not only guarantee a previously booked rate if the rate goes up, but also discount a rate if it goes down , without the penalties airlines charge for the same thing.
If all else fails, you can always go green and check out public transportation. Which, come to think about it, is worth doing in many cities, anyway — for the environment and your pocketbook.
