iahphx

Yeah, since time immemorial, that's been the path to profitability for car rental companies -- especially those catering to leisure travellers. Heck, I remember my first car rental back in the 80s. My travel agent (remember those!) told me she could get me a great deal with Alamo, but that they would be relentless at the counter demanding that I buy insurance. Without that coaching, I'm not sure I could have remained strong. They've actually gotten less pushy over the years.

But it doesn't seem like a lot of money has been made in the industry during that time. Several car rental companies have gone into bankruptcy, and they're constantly being bought and sold without much fanfare. I would have thought that the consolidation in the industry would have boosted prices (much like it has for the US airlines), but so far, car rentals remain (on average) pretty cheap. Indeed, the best thing that Dollar could do for Hertz is probably take out a low-price competitor. As I mentioned, I tend to shop Dollar/Thrifty only when I find the big players are too expensive. I agree that the difference in service is marginal, although my loyalty cards (Emerald, #!, Preferred) usually speed up the renting process at the majors.