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 . . .