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Avis to Boost Rental FaresNovember 26, 2008 By: Travel Agent Central Contributor
Avis Budget Group Inc. is going to increase car rental rates by $3 per day and $20 per week, beginning December 1, for airport and some off-airport rentals in the U.S. in order to offset rising business costs. Customers covered by corporate account agreements or other special arrangements will not be subjected to the rate increases.
"The severe impact of escalating costs affecting our business clearly requires that rates rise over time in order to improve profitability," Scott Deaver, executive vice president for strategy, said in a statement.
Shares of Avis Budget are down 97 percent so far this year and it just reported a $1 billion third-quarter loss. Standard & Poor's announced that it was removing Avis from its index of midcap stocks.