A couple of weeks ago, Carol Vinzant noted that Hertz (NYSE: HTZ) had stopped its practice of gouging customers for gas fill-ups. Rather than charge exorbitant prices for gas, the renter instead chose the market rate, merely tacking on a $7 surcharge for the cost of paying somebody to fill up. While Hertz claimed that this was a voluntary decision, it coincided suspiciously with the Maryland Attorney General's threat to sue large rental firms for their exorbitant gas charges.
Whether Hertz is trying to find ways to offset their gas losses or is just trying to generate a little extra income in what are becoming hard times for the rental industry, their latest revenue stream is pretty smart: they're renting out ad space in their rental fleet. In addition to printing ads on ticket jackets and hang tags, the company is planning to utilize printed trunk liners and will also be offering free samples to customers. This, of course, follows the lead set by some airlines, which have begun plastering ads atop everything that doesn't move.
Hertz is hoping that its advertising strategy will help offset losses that it has incurred as high gas prices have caused customers to cancel trips, severely undercutting the rental industry. These days, anything that helps keep prices down and service up seems like a burst of genius!
Hertz finds a new revenue stream ... not a moment too soon!
Posted Jul 7th 2008 3:34PM by Bruce Watson
Filed under: Marketing and advertising
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Reader Comments (Page 1 of 1)
7-09-2008 @ 8:42PM
Richard Sweat said...
Warning tip: When you jump from your flight into a rental car...look under the seats. I was in an "open container" state, and that night just happened to be looking for some paperwork I had lost and found an empty beer can up under the drivers seat. Had I been stopped, it would have been on my head. (It was not Hertz Rental). Taught me a lesson. When I pick up a rental, I really go over it. You would be surprised at some other things I have found.
7-09-2008 @ 8:42PM
Bruce Watson said...
Jeez--thanks for the tip!
7-09-2008 @ 8:47PM
mike said...
Be carful when you pick up your rental car. Last weekend I rented from Alamo and the gas tak was only 3/4 full. I believe they do this on purpose. I raised hell and they refilled the tank. But I wonder how many people don't notice until they are several miles away.
7-09-2008 @ 8:59PM
v said...
sounds like they did not thoroughly clean the car which is weird because they are always trying to charge some fee
7-09-2008 @ 9:02PM
Bruce Watson said...
Richard, Mike, V, and any other interested parties-
This sounds like a good post for Walletpop, another one of the blogs that I write for. Let me know if you have any other bad rental stories that you want to put out there. In the meantime, I'll do some research on this.
Thanks!