Stronger Demand, Tighter Supply Mean Profits And Service Issues In Car Rental

Some companies' biggest travel management headaches these days are coming from one of the smaller-spend categories — ground transportation, particularly car rental. Renters face tight availability, poor vehicle condition and rising rates.

Avis Budget Group and Hertz reported record earnings for the quarter ended Sept. 30. They cited strengthening demand, cost reductions realized during the pandemic and favorable prices for selling their used cars.

Supply is a massive issue as demand improves.

"Demand exceeded original forecasts and fleet can't keep up," said longtime rental industry consultant Neil Abrams. "That's great if . . .

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Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.
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