Car rentals: older cars, less service ?
Friday, January 9th, 2009No one pays much attention to car hire until things turn bad–and things are bad. One small player, Advantage Rent A Car, has tumbled into bankruptcy and closed many of its rental stations. Standard & Poor’s says Dollar Thrifty may be the next into Chapter 11. The Avis Budget Group had to scramble to secure financing for a fleet update. Enterprise, until recently the industry’s highest flyer, is laying off employees for the first time in its 50-year history. What’s it mean for us in 2009? More rentals with high mileage, lots of road wear and obvious cosmetic damage. (Don’t be shocked if you get a two-year-old clunker with 20,000 miles or more.) Fewer employees to check us in when we return cars. (Most rental firms are emulating Enterprise.) And more under-the-radar cash grabs. (Watch for rising daily rates for insurance and damage waivers and higher prices for vehicle-refueling service.) The bad state of the global economy will take its toll on car hire companies and the entire travel industry in 2009.
Source: The Washington Post