Hertz car rental joins Alamo, Enterprise, and National in raising rental by about 10%. Hmmm, we are in a recession, both business and consumer travel are decreasing. The cost of new vehicles of the type bought by rental companies are also falling as Detroit tries to unload its products.
Let’s not accuse the (in this case) car rental industry of being overly alert. According to today’s Wall St. Journal (10/29/08, p D5) other companies are “…going to wait and see what competitors do and then consider raising rates…”
This could be an opportune time to increase share and loyalty by keeping prices level. Speak to your customers concerns about the economy. Social networking programs would be particularly cost effective here. If your competition wishes to drive into a ditch in tandem, for example, by increasing prices at the wrong time – so much the better.