Experts recommend early car hire booking as prices rise

www.avisbudgetgroup.com

For travelers taking a summer break closer to home this year and planning to rent a car for the trip, industry experts are warning that the cost of the rental is likely to be a larger percentage of this year’s vacation budget.

After the economic downturn began to impact demand for car rentals late last year, many operators offered lower prices to avoid having vehicles sitting idle on their lots. In addition, rental companies started reducing the size of their fleets as demand continued to decline. The Avis Budget Group, for example, reported that at the end of the first quarter of this year its fleet was 22 percent smaller than a year ago.

With fewer vehicles available for rent, car hire companies have now been able to raise their prices to levels seen before the recession.

Clam Bason, who is the president of Expedia’s Hotwire Group, noted that one year ago the average basic car rental cost was $35 per day. He added that currently the average is $44 per day – a figure that is expected to increase over the summer.

Bason said that rates are highest in parts of California and in Las Vegas, which are both areas that were hit hard when the recession led to a sharp drop in travel spending.

There are also fewer rental cars available overall, meaning that it may be more difficult for consumers to find the type of car they want. Experts are suggesting that customers go to the rental counter as early in the day as possible, as longer lines can be expected later in the day. There’s also likely to be more pressure to accept a different model than what was reserved as the day progresses and cars are given out to other renters.

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