Business Car Rental prices on the decline in the U.S.
Here’s good news for those spending considerable time on the highways across the United States. Media reports cited latest data as showing that car rental rates for corporate travel is constantly on the decline. This is despite the fact that rates for hotel rooms as also airfares are beginning to rise as the after effects of recession continues to wane with the nation firming up its foothold and slowly emerging out of this.
A travel firm with expertise in analyzing business travel data publicized its report citing that the average daily price of corporate car hire significantly declined in Q1 2012 to nearly 5 percent, as compared to Q1 2011. The firm based its data after analyzing about one million corporate car rental deals.
Another travel company engaged in providing Rent a Car services to corporate travelers also provided details about its transactions. The company, which is based in the U.S. and has over 1,250 travel agencies in its chain nationwide, analyzed 1.5 million of its own car rental deals for the first quarter of 2012 and said that corporate travelers are now having access to cheap car rentals. The company reported that per day car rental rates have sharply dropped 4.6 percent. It also reported that the average cost for car hire also dipped 2.8 percent.
Major industry players also published their quarterly reports reflecting a similar trend. According to media reports, there was a 3.6 percent decline in rates for on-airport corporate car rental services. Yet another report published by Avis-Budget said that there was a 2 percent drop in Rent a Car services for corporate travelers.
Media reports pointed out that the decline in corporate car rental rates is not being seen for the first time. In fact, a gradual decrease in corporate car hire prices is being witnessed over the past several years now. This is happening even though the industry continues with mergers and consolidations.
A travel expert said that the downward pressure on car rental rates can be majorly attributed to a tough competition among three major car rental companies – Avis, Hertz and National – which are trying their best to get corporate customers into their respective folds by offering the best rates. For these companies, the only course left is to attract customers and effectively negotiate with them offering lower rates or simply risk losing them, which neither of the companies would ever want in any case whatsoever.