There are a few ways to talk about business travel’s prospects. Some news articles quote sentiment surveys — do business folks plan to travel more or less, spend more or less on trips, loosen up on restrictions? Some highlight mid- to long-term forecasts by economists and the like. Many discuss uncertainty, but booking trends have…
Negotiating a discount off floating market rates is the prevailing model in airline corporate deals and a component of corporate hotel agreements. Is car rental the next sector to take this plunge with its medium-sized and larger accounts? There’s talk, but most observers don’t see that happening in the near term. “Hertz has always maintained…
As fuel costs increase, travel buyers may want to revisit and refresh their car rental policies, negotiations and traveler communications. Corporate travel policies typically recommend or require travelers to fill up before dropping off rentals. When car rental companies do the refueling, the rate may be as much as a few dollars more per gallon,…
Hertz emerged last year from bankruptcy as a leaner company with a new outlook on corporate sales. It used reorganization to get out of what it deemed unfavorable corporate deals and now, according to interim CEO Mark Fields, “We do not chase unprofitable business.” That’s easier to justify when there is tight supply relative to…
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…
Travelers taking advantage of rates negotiated by companies they don’t work for is one of the oldest tricks in the book. With car rental rates rising amid recovering demand and limited inventory, Avis Budget is telling customers they must prove they are entitled to discounted rates by producing verification of their employer. Small businesses must…
Lodging and transportation companies lost money in the first quarter and they’re losing more during the second. What matters now is shoring up liquidity and improving cash burn for the second half of the year and into 2021. To bolster reserves, suppliers are taking out loans, tapping into credit facilities, cutting spending and reducing workforces….
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