Hertz, Alamo Offer New Business Rates : Travel: Customers must have airline tickets to take advantage of the lower weekday rates that start at $24.99 for an economy car.
The travel industry trend toward simplified pricing has spread to Hertz Corp. and Alamo Rent a Car, which announced new prices for business travelers Monday.
The move by two of the largest rental car companies follows similar announcements of simplified pricing by major airlines and hotel groups as well.
Hertz said it was seeking to take advantage of a new surge in airline bookings that followed recent cuts in air fares.
The Park Ridge, N.J.-based company said its Hertz “No. 1 daily rates” plan is for business travelers not eligible for discounts under existing corporate car rental contracts.
Because most business trips occur from Tuesday through Thursday, the pricing plan drops the requirement that a car be kept on a Saturday in order to get the low prices.
Under the two-tier plan, an economy car, such as a Ford Festiva, can be rented for $24.99 a day if booked in advance. If a customer reserves the same day--meaning at least two hours ahead--the rates for the car start at $28.99.
The customer must have an airline ticket to take advantage of the rates.
The rates are in effect now and continue through June 30.
Alamo’s “great American business rates” plan is similar, although rates and some other terms differ from the Hertz plan.
“Leisure rates” for non-business travelers are lower than the business plan but still have the Saturday requirement.
The move by Hertz and Alamo follows simplified pricing announced in recent weeks by American Airlines and ITT Sheraton Corp.’s 300 hotels and inns in North America.
Alamo, based in Ft. Lauderdale, Fla., announced new leisure rates as low as $15 a day last month that continue through June 24. Hertz responded with its own $14.99 leisure rate.
Alamo’s competitors had criticized last month’s move, saying the prices were too low to be profitable.
American, the largest U.S. airline, dropped several hundred of its fares to offer only four, which other carriers followed. Airlines said they were getting customer complaints about the confusion caused by so many fares.
Sheraton announced last month that it was cutting its numerous potential discounts on rooms to just three. When Sheraton announced its “sure saver” rates, the Boston-based hotel chain said it wanted to eliminate the price-haggling that consumers dislike.
Sheraton rates were reduced to just three: a weekday rate, a weekend rate and a rate for customers who book rooms 14 days in advance.
Hertz spokesman Joseph Russo said the new car-rental pricing is aimed at business travelers who work for smaller firms and are thus more cost-conscious. Hertz has seen a double-digit rise in the number of these airline travelers recently, he said.
“For the business traveler, there is now a simple, daily rate structure nationwide,” Russo said.
