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Old Jul 27, 2012, 7:45 pm
  #1  
ibrandsguest
 
Join Date: Jan 2003
Programs: American Airlines Platinum, National Executive
Posts: 3,790
How are inexpensive rentals profitable?

I just booked a car this weekend for 24 hours for $20, and I've had much less expensive ones- even as low as maybe $15 for 24 hours.

The market is a business traveler market, not a leisure market, and so I'd guess that there is little demand on weekends.

How does National make money on those rentals? True, a dollar is better than no dollar, but wouldn't the wear and tear on the car, costs of cleaning, maintenance, etc. be at least $15-20?

Is National's goal just to build customer loyalty and market share, in the hopes of capturing more profitable business in the future?
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