Hertz does turnaround

Monday, 17 Feb, 2005 0

Hertz’s $2.50 reservation processing fee came to a quick stop as the company faced stiff opposition.

Richard Broome, the company’s vice president of corporate affairs, said the fee is now on “indefinite hold.”

Hertz’s announced the $2.50 reservation fee for vehicle rentals booked in the US either through a Web site or by the company’s telephone agents.

Hertz officials said the fee was aimed at helping the company offset increasing costs related to its reservation operations.

Consumer advocates, however, called it a hidden price increase.

Rival rental companies such as Avis Rent A Car System Inc. and Thrifty Inc. had not indicated that they planned to follow Hertz’s lead and charge such a fee, according to The Washington Post.

For large corporations that have exclusive rental contracts with Hertz, a $2.50 reservation fee could have resulted in additional charges of hundreds of thousands of dollars, the Post said.

Report by David Wilkening

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