Originally Posted by
Auto Enthusiast
Corporate-sponsored travelers often rent much more than the average bargain-hungry retail weekender. Corporate renters also tend to have lower usage than said weekend day trippers. Corporate contracts therefore bring in considerably more revenue and profit for the rental companies. And that's even with the big discounts offered to them for the purpose of encouraging and rewarding the best customers.
It's not the retail customer who is subsidizing the corporate one, but rather the other way around. Without such business travelers to even out the demand and usage during the week, when most retail customers are at their stationary workplace, rates could be higher on the weekends when the business travelers are at home, and the high usage retail folks come out shopping for bargains.
Not true! Retail punters pay cash - often in advance of the rental. Large corporates pay on 30 day crerdit accounts (if you're lucky), more often taking 60 or even 90 days and credit chasing before settling their accounts.
What you say about wear and tear is great - in theory. However, the average company car user abuses the vehicle - I know, I park next to two VW Polos that the BAA have on a daily contract. The cars were brand new six months ago, have never been washed and have never been serviced and my five year old Polo now outshines the pair of them! Both of those cars will be on the scrapheap long before my little 1.2S that is, as you say, used at weekends.
It is the Retail Customer who is the "mug" - we are most definitely subsidising the fat cats who can afford to pay!