Does National only want corporate business customers?
 

I'm a very long term National customer -- like for 30 years! Every once in a while, something goes wrong but, in general, I am extremely satisfied by the service I receive from National. The Emerald Aisle is still the best program in the car rental business. Indeed, I frequently tell people that National is my favorite travel provider.

But I have noticed a trend in the past few years that is a bit annoying. Basically, National isn't too interested in my business -- or, more accurately, my business when I'm paying my own way for a car rental. On public rates, they are now almost NEVER remotely competitive with other companies, mostly notably their own sister company, Alamo. The only time their rates are even plausible is with a good corporate code and then, half the time, the price is still MUCH higher than Alamo's. Just a few years ago, you could pay a few extra bucks over Alamo's rates for National's somewhat better service. Those days are gone: National's public rates are now often 2x Alamo's! The result is that I rent with Alamo now at least as often as I rent with National. Even though I'd rather not.

I understand the different business focus and, to some extent, it makes sense to me. National is supposed to be the business-focused rent-a-car company and Alamo is supposed to be leisure focused. But it seems to me that National's current pricing strategy is taking this concept to the extreme. I would think a better strategy would be -- as it was in the past -- to position National as a PREMIUM car rental company for all customers (the majority of whom would naturally be business travellers) and to have Alamo as your "good deal" vacation car rental company.

As frequent renters know, at the end of the day, you pretty much wind up with the same cars at Alamo as you do at National. The difference is when picking up your car and, to some minor extent, the vehicle selection. The return process is the same (and often shared with Alamo). As things currently stand, no "regular" traveller would ever book with National. I guess they're OK with that, but it does strike me as rather odd.

This is true at YVR.. National are double the price of Alamo, Avis, Hertz, etc. I miss renting from National.

Ron.

Maybe they have decided that in order to be a profitable business concern, their best bet is to attract business travelers and corporate contracts which might be either less price sensitive or able to guarantee a high rental volume to offset a lower contracted rate, and to not compete for the lowest margin customers. It might not suit us as individuals, but it seems to be working for them.

For what it's worth, my company's contract gets me $35-$39/day everywhere in the US, and we are permitted to use the rate (minus the built-in CDW) for personal rentals. I have had a slow year in 2018, with 41 rentals by the end of the year, and around 120 days. I would imagine that the rest of my 6 member team are similar, so just our small group represent probably 250 rentals and 700+ days per year.

National charges more because they can. Full stop. They are in business to make a profit. People are willing to pay for the premium selection and experience. For those who are unhappy with the rates, there is Alamo. Apparently, more than enough folks are willing to pay National's rate since their fleet utilization is quite high according to sources we've spoken with.

Enterprise may be a private company that doesn't report financial results publicly, but make no mistake--they are incredibly well run and quite profitable, which is more than we can say for most of the rest of the industry (looking at you CAR and HTZ).

Don't forget that you can get Emerald Club credit on rentals from Enterprise as well. Oftentimes, I've found their rack rates to be competitive with Alamo.

At certain locations also, National can even come out ahead of Enterprise and Alamo. At LAS for instance, I've had numerous personal rentals/reservations at a daily mid-size rate of around $15 with National, while Alamo and Enterprise were both in the $30-$45 range. This was as simple as being logged in to the system with my Emerald Club account when making the reservation, and deselecting my corporate rate and using the default Emerald Club contract. Deals are to be had out there, you just have to find them. You also can't beat the value you get from free days as an Executive Elite, especially when reserving higher end vehicles on one-ways.

Here in NY the state forced National and Alamo to share locations years ago. Thus in theory there is no difference between vehicles offered at say NYC locations since they all come from same counter. What varies of course are rewards and so forth. Don't know for instance if Alamo will get a free upgrade to a premium or whatever else "special" a National location in city has because they don't have the reserved ICAR or even lower.

That being said find myself always renting from National when it matters. Besides service and rewards they always come through with a nice ride (and frequently upgrades at no extra charge).

Yes, Enterprise rates are often comparable to Alamo and often go to a local location during week and or for last minute rental when cannot get down to National. However local Enterprise's fleet leaves much to be desired. It is limited and vehicles, vehicles have higher mileage (unless you are lucky to nab something new), and often seem a bit "busted" at times.

Enterprise also doesn't give up nothing at least in my experience/observations. If you reserve an ICAR that is what you'll get even if they must call around to find. You may be offered an upgrade to a larger vehicle, CUV, SUV, etc... but not at same rate. Though however as of late have been getting tons of email coupons for free upgrades, weekend rates, etc.. from Enterprise.

Enterprise is a bit heavy on the upsell IMHO as well. Though local locations know me well enough by now not to bother, now and then a new counter rep won't take the hint.

Like that National usually has 24/7 drop off that means just that; vehicle is marked "returned" and rental ended when returned. Not the next day (Enterprise) opens which can make the difference between adding on an extra day to rental or not.

Case in point due to the local Enterprise weekend hours effectively weekend returns aren't allowed. Anything taken out on Friday evening cannot be returned until Sunday, which is fine if you want a vehicle for two days, otherwise.....

National IMHO always has always offered a premium service.

National and Alamo and Enterprise are all part of the same company. I don't think the state forced them to share anything.

No, that is not correct.

Prior to being purchased by Enterprise Holdings, National and Alamo were owned by Vanguard Automotive Group. They in turn had purchased ANC Rental who previously owned National and Alamo.

Enterprise didn't purchase National/Alamo until 2007, I've been renting from National since 1998 or earlier.

See: https://www.flyertalk.com/forum/nati...ar-rental.html

We've never heard of this. Do you have a source for this information?

This may be the case, but I have never seen a major travel provider as hostile to individual travel as National is right now. I don't quite understand why they want their rates to be so non-competitive. It's obviously not the end of the world, and Alamo is more than fine, but it is definitely an annoyance.

I've had a couple 3 day weekend rentals with National recently at $12-$17 per day. Alamo those weekends is $10-$14/day. Then use a coupon for either $20 off 3 days at National. Then get the one two free credit. Pretty good deal in my opinion lately.

There have been those other weekends where they are $60/day and Alamo is $22/day...

Don't get discouraged. Just keep checking prices.

What location(s) are you finding those rates at?

Right, so what was incorrect about my post?

Many times National's prepaid leisure rates are within a few dollars of Alamo like this or this. Sometimes, you'll find National even lower than Alamo like this. The nice thing about these deals is that you can still take advantage of all of your EC benefits as they can associate your member number at the exit booth (no need to stop at the counter).