Ever since the travel agency took a big hit during the global recession the car rental agency industry has been doing massive cost cutting. When the oil prices were at over $150 per barrel yielding gasoline prices at about $5.50 per gallon on the coasts; it kept people from traveling. When fewer people travel the car rental agencies have their cars sitting on their lives and no one is renting them. Therefore everything becomes cost and they have no income. Many rent a car companies that lost so much money during the height of the fuel prices were in extreme peril before the global recession hit. They had already cut costs to the bone and there was very little to cut after that.
There were quite a few mergers and acquisitions, and many smaller car rental agencies and the franchisees of the largest rental car companies in America had filed bankruptcy. Some of the large Rent-A-Car corporations are no longer with us. But after that big shakeout there was a tremendous amount of capacity taken out of the industry, which seemed to help the remaining companies stay in business. Visit : Coronado Cars – Panama City
If you will note in the first and second quarter of 2009 there was really no steep discounting going on in the automobile rental industry. This is good, not for us travelers, but it has helped them return to profit. In fact, by Budget Avis, Hertz and several other large Rent-A-Car corporations actually posted profits.
Does this mean that the recession is over and people are traveling again? Yes, a little bit, but that is not why they had profits, these companies had profits because they had cut their costs down to nothing and they are the survivors of the industry with less competition than they had prior. Please consider all this.