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Hertz Announces Price IncreasesOctober 29, 2008 By: George Dooley
Citing inflationary pressures, Hertz has announced price increases averaging $5 per day in the U.S. airport market. The increases take effect between October 24 and November 10 for retail rental businesses in North America and Europe. Rates have been increased by an average of over 10 percent in North American airport markets, 5 percent in U.S. off-airport markets and approximately 10 percent in European airport and downtown markets. Hertz negotiated contract rates are not affected.
Prior to implementing these increases, Hertz's pricing in the U.S. car rental market was more than 1.5 percent lower for the 12-month period ending September 30, with a similar reduction in pricing for the company's U.S. equipment rental business.
"We are committed to our overall strategy which will align rental revenues more closely with our overall costs," said Mark P. Frissora, Hertz's chairman and CEO. "We assessed inflationary trends in key areas, including vehicle maintenance and repairs, depreciation and other fleet-related costs, facility expenses and commodity prices. Additionally, we continue our companywide process, which began in early 2007, to restructure and right-size Hertz to further mitigate the effects of inflation and to operate as the lowest cost, highest quality rental provider in the world. We also remain committed to industry-leading, consumer-friendly initiatives such as our 'local pump price' refueling program in the U.S. car rental market."
Michel Taride, executive vice president, Hertz Corporation, and president, Hertz Europe, added: "We have taken this action given the significant inflationary pressures we have experienced for the last few years. However, we have made our price increases as modest as possible to minimize the effect on our retail customers. We will continue to offer attractive and competitive rates to the consumer, as well as deliver special offers such as our 90th Anniversary discount promotions this and next year."