Exerpt from article at
www.colloquy.com:
There's movement afoot in the seldom-changing world of car rental loyalty programs. Following closely on the heels of a similar decision by Hertz, ANC Rental Corporation, parent company of the National Car Rental and Alamo Rent A Car chains, announced today that the company would begin "reviewing the value of its participation" in airline loyalty programs.
Like Hertz's move, ANC's decision comes at a time when the depressed travel economy has forced the car rental industry to look closely at its margins. Acknowledging that "not all frequent-flyer programs offer the competitive advantages they once did," ANC plans to meet with its travel partners and commercial accounts over the next 30 days. A decision on which frequent-flyer partnerships will be continued is expected during the first quarter of 2003.
What the car rental companies have realized is that, with the market flooded with airline miles, reduced travel due to economic conditions and terror warnings and a corresponding reduction in the number of flights scheduled, airline miles are losing some of their luster.
Michael Going, Sr. VP of Sales for ANC, said in a press release, "It's apparent that the cost of the programs benefits the airlines, not the customer or the car rental industry due to the breakage component in unredeemed miles."
The article goes on to state unlike Hertz, National will not unilaterally make the change without notice.
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