Avis to increase Europe car rental prices

www.avis-europe.com

Car rental company Avis Europe has revealed it would be increasing its prices as it continued restructuring plans that include job cuts and recruitment and salary freezes.

In warning of the difficult times ahead, the company’s chief executive, Pascal Bazin, noted that Avis Europe would take the lead in increasing car rental prices by 10 per cent beginning in April. “This is the first time prices have risen for the past six to seven years,” Bazin said.

Europe’s car rental industry has been hit by a drop in leisure travel and by decreasing used car prices, which makes it difficult for those wanting to sell off older vehicles in their fleets.

Avis, with outlets throughout Europe and the Middle East, indicated that it would further reduce its workforce in Europe by five per cent –after the 10 per cent reduction made in the second half of 2008.

The company will also be reducing its fleet size by another 5-10 per cent and close unprofitable locations as part of cost-cutting efforts aimed at saving Avis Europe €16m annually, beginning this year.

“The number of rentals will go down,” said the rental company’s chief executive, “but that doesn’t mean we’ll accept that decline.”

Thanks to www.ft.com for the above quotes, for more information on this article please visit their website.

www.avis-europe.com