12 January 2010

Car rental prices buck trend: rates went up last year

Travel deals were unprecedented last year but not when it comes to car rentals. They skyrocketed.
 

The average weekly published rental rate (including airports) for a compact car was $335.05 in 2009, up 51 percent from 2008, according to Abrams Consulting Group, a Purchase, N.Y., rental-car consulting firm.
 

Rates will continue to rise in 2010, though at a slower pace, says Neil Abrams, president of the consulting company.
 

Why?
 

Rental companies significantly reduced the number of cars they own — their fleet size — giving them leverage to raise prices, according to The Wall Street Journal.
 

The result: car rental companies were able to raise prices.
 

Rental-car companies are expected to increase fleet sizes gradually as demand increases in 2010.
 

"What I anticipate is that they will step it up very thoughtfully and in very small increments," said Clem Bason, president of Hotwire Group, a travel Web site. Then "they can maintain that pricing power that they've been able to establish over the last year."
 

By David Wilkening
 

• PRINT
• SEND TO A FRIEND
• SHARE

Post your comment

Your Comments

, be the first to post a comment.
Your email:

Your comment title:


Your comment:

Email other comments made to this story

5 characters