Car rental industry turning away customers

Published Thursday August 14th, 2008

If you're planning to get away, be sure to arrange car rentals in advance.

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In the last week of July I turned down about 40 people per day," says a spokesperson for Hertz in Moncton. "That's typical of the industry across the Maritimes this year. I've never seen that many people turned away."

The story is the same with one rental company after another this summer. People who walk into a car rental agency without a reservation are likely to walk out without a car. Gone are the days when you can take availability for granted in New Brunswick, or any part of Atlantic Canada.

Of the seven major rental companies contacted the day after the August long weekend, two were too busy to give interviews, and of the remaining five, only Discount had a car available for walk-in renters.

"We're told to say yes to people, if we think we can find a car for them," says Discount customer service representative Justin Jackson. "We have three locations around the province to bring cars from, and if we have to we'll take a car that's in for routine maintenance like an oil change, to get a car to a customer."

Other rental companies also scramble to get cars to people; it's part of the industry.

"A rental company's main goal is to be sold out," explains the Hertz spokesperson who prefers to remain anonymous. "That means the company is doing well."

If that's indeed the industry measuring stick, then car rental companies across the area are having very successful summers. Fleets are being used at maximum capacity, cars are leaving the lots almost as soon as they're returned, and customer service representatives are getting used to saying, "sorry, we're sold out".

The high price of gasoline doesn't seem to be having much of an impact on the car rental industry, except to some extent in terms of vehicles rented.

"We're renting everything," says a Budget spokesperson. "Gas prices aren't stopping people from renting cars, though people are asking for smaller ones. Also, if we don't have a compact available they're not as eager to take the upgrade to a bigger less fuel-efficient vehicle. They will ask what's best on gas."

When asked if fleet sizes have been reduced this year in response to higher fuel prices or for any other reason, each company spokesperson indicated that was not the case. National, in fact, has added to its fleet this year. As Avis office manager David MacLoud says, "This happens every summer."

The Hertz spokesperson has some insight on what may be behind this boom in Maritime car rentals, suggesting Maritimers now living in Alberta vacationing here this summer have rented the majority of vehicles.

Other explanations for capacity rentals range from sporting and cultural events to economic good health, especially in the Moncton area. The rush, though, is expected to slow as September approaches, then pick up again for autumn tourism, and settle down again in late October. It's at this time of year companies do their fleet turnaround, which involves selling off older cars or returning leased vehicles to manufacturers. This leaves companies with somewhat smaller winter fleets, which again operate at near capacity.

"Even last winter was busier than the winter before," Discount's Jackson says, looking back on last winter. "That may have been related to the number of accidents in a snowy winter, meaning more people were renting while their own vehicles were being repaired."

Anything, from weather to business, from vacation time to money from oil-rich Alberta, is credited with the boom in the Maritime car rental industry. The obvious solution is to book a vehicle ahead of time, as soon as you know the dates involved.

"Never fly into Moncton any time of year without a reservation," urges National's spokesperson. "These are words to live by, in summer especially. People are booking for next summer already."

This advice applies equally to all Maritime locations, airport or downtown: book ahead.

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I've written a book called "How to Save Big Money on Car Rental" and in it I teach the secrets of not only saving money, but creating stress free car rental experiences. Please visit: www.MyRentalCarSecrets.com for more information and to purchase. My time as a rental car business owner spans over a decade and I've literally helped thousands of people.
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Bob Minelli, Milwaukee on 14/08/08 12:52:47 PM AST
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