San Antonio Express-News (Sunday)
Rental car agencies firing on fewer cylinders
Like the rest of the travel sector, the rental car industry has been hit hard by COVID-19.
That means a set of new rules for renting cars. A key one is to make your reservation as far in advance as possible.
I learned that the hard way on a trip to Atlanta several months back. I called to reserve a car only a day before my arrival. The six rental car companies I contacted were sold out.
I scratched my head. I thought hardly anyone was traveling and that the huge decrease in the number of air passengers would mean plenty of rental cars.
My mistake was not realizing that rental companies had sold hundreds of thousands of cars because demand had cratered.
Hertz Global Holdings Inc., one of the largest rental car companies, is in bankruptcy. The company is unloading more than 180,000 of its cars as part of its financial restructuring, according to filings with security regulators.
Hertz has also closed 272 of its locations, according to its website. Almost all its airport locations are open, but the closures include dozens of Hertz counters at hotels.
If you want to take an Uber or taxi to your hotel and grab your Hertz car there, don’t assume the option is still available. Other shuttered locations include Hertz counters at Amtrak stations in Orlando, Fla., and Reno, Nev.
Hertz also has consolidated operations. Customers renting from its Dollar Rent A Car and Thrifty Car Rental subsidiaries must go to the Hertz counter at some locations, such as San Antonio International Airport, a Hertz spokesman said.
Hertz and other rental car companies also have reduced hours at some locations. Your ability to pick up a car at an airport counter in the middle of the night may be more limited, especially at midsize airports. No fun if your flight is late and the car rental counter is closed.
Avis Budget Group Inc., which includes the Avis and Budget brands, has reduced its fleet by 30 percent, the company said in securities filings.
All these changes mean that even with a reservation, the rental process may not go as smoothly as you’d anticipated.
I tried to rent a vehicle at the National car rental lot at Love Field in Dallas, but none were available.
Luckily, I didn’t have a business appointment when I arrived at the lot last month. I was told it would be about half an hour until they washed a newly returned car and got it to me.
When I received my car, the attendant told me I was lucky. He said a few days earlier the wait had been as long as two hours.
On another recent occasion at National’s Love Field rental lot, I was told my only choice was a pickup.
I usually rent from National and I am a member of its loyalty club program, the Emerald Club. Most National locations have an Emerald Aisle — several rows of cars that club members can select from. But lately the choices have been sparse at several airport locations.
Other travelers have told me similar stories of long waits for rentals at various companies and a lack of vehicle choices.
Following the example of airlines, rental car companies overbook, assuming a certain percentage of travelers won’t show up. The formula isn’t always perfect, and the coronavirus pandemic leaves less room for error because rental car fleets are smaller.
Rental car companies have also committed to more thorough car cleaning during the COVID-19 pandemic. That’s good, but it also comes as car rental companies have cut workers, meaning possible delays in turning around cars between customers.
Hertz has laid off 11,000 workers in the U.S. since March; Avis Budget has cut 3,600; and Enterprise
Holdings, which includes the National, Alamo and Enterprise brands, 2,600, regulatory filings show.
The car rental industry is highly concentrated, so the choice of going to another company if you’re dissatisfied is not necessarily available.
Hertz, Avis Budget and Enterprise Holdings control 95 percent of the U.S. rental car market.
The good news is that rental car companies say they are again purchasing new vehicles.
“In some cases, we’ve had periodic instances and locations where we’ve had shortages of vehicles or brief wait times. However, these are typically temporary,” said Lisa Martini, a spokeswoman for Enterprise Holdings.
She said the company “has continued to monitor demand and respond accordingly,” including both selling and buying new cars.
Hertz had been forced to sell cars to meet the demands of creditors, but, like Enterprise Holdings, it is also buying new vehicles to replenish its fleet. A U.S. bankruptcy court judge gave the OK on Nov. 24 for Hertz to spend $4 billion on new vehicles.
“Our fleet has been rightsized to meet demand,” the Hertz spokesman said.
It’s also positive news that Hertz is updating its fleet with new cars. Generally, car rental companies replace vehicles after around 30,000 miles. I rented several high-mileage vehicles from Hertz over the years, and I was disappointed.
Driving a new car has always been part of the enjoyment of the rental car experience, and we could all use some fun in these days of COVID.