Corporate car rental rates to remain unchanged

Corporate travel departments will see rates for car rentals remain flat or increase by no more than one percent in 2009, according to the 2009 Business Travel Overview and Cost Forecast published by the National Business Travel Association.

Travel management company executives are recommending negotiating new agreements with car rental suppliers now.

Experts are saying that leveraging rental car spending with one or two providers and seeking compliance by travelers in using only these providers can provide cost savings and increased efficiency. Also, having travelers purchase ground transport services through a travel management company by means of an online booking site can add further savings and efficiencies.

“To offset higher operating costs, we expect car companies to push through rate increases with new contracts,” the director of air and ground transportation for Egencia North America, Mathias Eichelberger, said. “But if an organization can bring volume to the table, it will be in a very good position to negotiate for discounts.”

The managing director for ground transportation at CWT Solutions Group—Americas Dave Kilduff, noted: “Simply managing the category and negotiating with suppliers will save regardless of what is going on in the marketplace. To compare prices offered by car rental companies, Kilduff suggests travel buyers take a total cost of ownership approach to the buy and remember to include all of a company’s charges and add-on fees.”

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

www.nbta.org