Cellular Phones in Rental Cars

Business travelers often give up the luxuries of the home office while on the road. But should a car telephone be one of those forfeited pleasures? Not according to the folks at Hertz, the nation’s largest car rental agency.

“We feel that cellular phones are like power steering. People buy it for their own cars and want to use it in their rental cars as well,” says Don Feehan, a Hertz vice president for marketing.

Exactly how many travelers want cellular service in their rental cars is currently being tested in a Hertz experiment involving 50 luxury Lincoln sedans based at Los Angeles airport. So far, the 3-month-old market test has shown a strong demand for the cellular-equipped cars, and plans are being drawn to expand the program throughout Southern California and into San Francisco.

But there have been a few problems. In several cases, the renters haven’t known how to use the equipment properly. And already 10% of the cellular units have been stolen from cars parked in crime-prone areas.

In order to cover its costs, Hertz is charging a $10 daily rental premium for the cars-cum-phones and a 95-cent-per-minute basic usage fee, more than double the rate the company pays PacTel Mobile Access, the cellular system’s operator. In addition, all long-distance calls cost extra and must be billed on the renter’s telephone charge card.

“It’s a costly service for us to operate and for the user,” Feehan admits. “But it’s worth it for the busy executive who can’t afford to waste time tied up on the freeway.”

Hertz isn’t the first company to realize the advantages of cellular-equipped cars for travelers. At least two taxi companies, in Chicago and suburban Washington, have installed the devices in some of their vehicles.

The service is so popular, reports Lee Barnes, owner of the Barwood Cab Co. outside Washington, that it will be expanded shortly. “The drivers who have the phones are often specifically requested,” he says. “It’s a real convenience for the rider.”