US car rental customers warned of summer price increases

www.avisbudgetgroup.com

Earlier this year, rental car companies in the US lowered their prices after a slowdown in travel left many vehicles idle on their lots. Recently, however, those same companies have slashed fleet sizes to match demand. One operator, the Avis Budget Group, reported that by the end of the first quarter this year its fleet was 22 percent smaller than it was a year ago.

Now, with fewer cars available, the companies have raised prices to levels seen before the economic downturn began late last year.

Clam Bason, Expedia’s Hotwire Group president, said that the average daily car rental price last year was $35 per day. The same car is costing $44 a day now, and that rate is expected to rise over the summer.

According to Bason, rates are high in Las Vegas and in parts of California - areas that were hit particularly hard by the recession and the decline in travel spending.

With fewer vehicles available, it may be more difficult for customers to find the car they want to rent, and they may find that the agent at the rental counter exerts some pressure to rent a car other than the one they had reserved. Industry observers are recommending showing up at the rental counter as early in the day as possible.

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www.avisbudgetgroup.com