Car rental giants agree to information improvements

FIVE car rental companies have agreed to improve the way they deal with customers following a Europe-wide competition review.

Avis Budget, Enterprise Rent-a-Car, Europcar, Sixt, and Hertz have agreed to introduce a series of improvements over the next six months.

The companies in total account for two thirds of the UK and European markets.

The Competition and Markets Authority (CMA) says they have agreed to:

· Improved transparency when making a website booking or reservation - consumers will have more of the key information they need to shop around for the best deal

· Better information at the booking stage about optional waiver and insurance products

· More upfront information about pre- and post-rental vehicle inspection processes

· Improved notification of, and dispute processes for, any charges for damage

CMA senior director, Nisha Arora, said: ‘These changes go a long way to ensuring that consumers know exactly what they are getting when they rent a car. The CMA has worked with the British Vehicle Rental and Leasing Association to make improvements to its UK code of conduct similar to those adopted by the main car hire businesses.’

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Online calendar for free family-friendly activities

THE rising cost of leisure activities is limiting families from spending more quality time out together, according to a report commissioned by car rental firm #HertzUK, which has created a digital calendar of free #family-friendly activity events.

Families which took part in a survey revealed they are spending an average of £440 per year on days out, with two-thirds of British parents saying the cost of activities has put a stop to them going out with the kids.

Olivier Lecocq at Hertz International, said: ‘After compiling this customer research, we learned that people in the UK are struggling for inspiration and the funds to enjoy memorable family days. We developed Hertz Together to allow families to discover a number of free activities in various cities across the country, putting parents’ minds at rest about the expense of days out.

‘Parents on the hunt for stimulating fun activities for the family will certainly find fresh ideas in our comprehensive list, which contains some of the country’s most-visited museums, galleries, and parks and gardens – and all are free of charge.”

A quarter of those surveyed said it’s too expensive to take their children out regularly.

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Hertz axes car hire deal with Ryanair

RYANAIR has been left with no car rental offering via its website after Hertz abruptly withdrew from a supply deal. The airline claims the sudden termination is a breach of a contract, which was recently extended by five years to 2020, and is to take legal action against Hertz.

#Hertz is to honour existing bookings made via #Ryanair.com.

The airline is now looking for a replacement car hire supplier which it does not expect to have in place until October.

Ryanair chief executive Michael O’Leary said: ‘We regret Hertz’s decision to end our car hire agreement at such short notice, at a time that will cause maximum inconvenience to our customers during the peak travel period. We have instructed our lawyers to issue proceedings against Hertz for breach of contract. In the meantime we look forward to entering into discussions with other car hire suppliers who wish to offer their services to Ryanair’s largest European customer via Ryanair.com.

Hertz’s decision to end its relationship with Ryanair seems to have been sparked by deals the airline has made with global distribution services companies that make its seats available on other platforms. These deals allow travel agents to offer Ryanair passengers car hire with companies other than Hertz.

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Hertz lifts US rental rates

HERTZ is to raise its car rental rates as from January 1, citing the depreciating value of its fleet.

‘Fleet costs are escalating due to declining residual values and, as a result, we have implemented price increases across our car rental brands in the US,’ Hertz's CEO John Tague said in a statement. ‘The company is pursuing cost reduction opportunities in addition to its previously announced programme to cut expenses while also increasing investment to improve our customers' rental experience, including refreshing the car rental fleet.’

The price increase is across the board for Hertz, Dollar, and Thrifty brands.

While its aging fleet played a role in its decision, what was left unsaid by Hertz was its ongoing accounting issues. 

The company announced in June that its financial statements for 2011, 2012 and 2013 would need to be re-stated and should no longer be relied upon. Hertz still hasn’t reported its financial results for 2014.


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