Hertz: High Gas Prices Haven't Hurt Holiday Travel
You want to talk about high gas prices? Hertz used to charge its customes $7.99 a gallon to refuel a car. In an interview with The New York Times, the rental car company's chairman and chief executive says Hertz has modified the charge to stop gouging their customers [paraphrasing]. "We are now reducing that to the pump price, which is $4 or so, plus a one-time fee of $6.99," Mark P. Frissora reveals. "We also have a fuel-purchase option. In the past, if you elected to buy the tank of gas in advance, we charged a 10- to 20-cent premium on that tank. But now we give a 15-cent discount to whatever the price is at the pump." Hertz is hoping new customers will cover the lost revenues. But what about the old biz, the vacationeers facing pump shock? "In general, gas prices going up is not a positive thing. However, it is not nearly as negative as you might imagine in rental car land. Typically, the rental car itself and gas are no more than 10 percent of the overall cost of a vacation. We are finding that people aren’t cutting vacations right now. You would think that with gas prices being high, there would be a deterioration, but we haven’t seen that." Yet. In other news, Hertz has just 3k Priora in its Green Fleet; Toyota's hyrbid's residuals are safe. For now.