Originally Posted by
docbert
Fully understand for a high-end vehicle, but this was for an Intermediate.
The odd thing is that the fees were exactly the same as pre-paid, which the more I think about it makes me think this was shown in error. I would expect a lower cancel fee (or less strict window) for "pay later", otherwise whats the point of having both options available?
First off, please understand that they are likely just testing the waters here, so it's not surprising that things don't totally make sense.
Second, it's not about high-end vehicles. Putting the most recent changes aside, Hertz as well as the other major rental companies have been requiring a credit card guarantee for higher demand periods for a long time. For example, try to make a reservation with National in NYC over Memorial Day weekend for a Compact car and you'll see this message:
Payment Information
To guarantee availability of the car class you requested, you must provide a credit card. Your card will not be charged today. National will authorize your card to guarantee vehicle availability. Click 'Add Payment' to continue.
This most recent development though is for any vehicle at any time. Hertz (as well as the other major rental companies) would like to become more like airlines where you will pay a fee anytime you want to change or cancel a reservation. The no-show rate in the rental industry can be as high as 30% which obviously makes inventory management difficult and leads to:
This makes a ton of business sense for the industry, but it's just something they've tried in the past but not been able to make stick. This is yet another attempt, even if it is just testing the waters.
As far as fees being the same, it kind of makes sense. They give you a discounted rate for Pay Now vs. Pay Later--not better cancellation terms. Maybe they will do that down the road, maybe not. Now it's easy to get around entering your CC for Pay Later at the moment, but maybe down the road it will be required across the board. Then again, maybe not. Time will tell...