With the cost of renting a car becoming an increasingly expensive proposition over recent months, recent industry moves have led to speculation that deals may become harder to find.
Last week’s takeover of the Dollar Thrifty group by industry giant Hertz cause mild panic among consumers who felt that a larger organisation would lead to market dominance and inflated prices.
However, industry analysts have predicted that car hire industry will keep prices at their existing levels and that the new deal would be unlikely to have an effect on costs to the customer.
Abrams Consulting Group head Neil Abrams said the merger was great news for the industry, adding that customers would likely see the overall benefit of the agreement.
Abrams, whose research company follows the car rental market, claimed that Hertz customers would benefit from the addition of more budget-orientated vehicles, while Dollar Thrifty customers would have access to the extensive worldwide system owned by its now parent company.
Abrams pointed to the Enterprise Group, which also operates Alamo and National, as having three brands competing under individual price tiers. He expected that the Dollar Thrifty and Hertz collaboration would result in a similar scenario.
The recession, combined with reduced fleet sizes and widespread closures led to 2009 seeing historically high rental rates. The industry, despite a return to more steady demand, would be likely to keep the high rates in place until such time as losses have been balanced.
Hertz operates in 8,200 locations across 146 countries, while Dollar Thrifty features 1,550 global locations.