Car rental agreements that automatically renew each year can ease a travel buyer’s workload by reducing the burden of annual negotiations. But it’s essential to know the details, Bill Knepper, senior director of business development for travel consulting firm Advito, warns in a recent blog post.
An automatic 3% to 5% annual increase can quickly add up over time. And it doesn’t offer benefits when rates actually drop, as they did during the economic downturn. In fact, Advito reports, travel programs that have sidestepped car rental bids for more than two years are car rentalpaying 10% over market rates—or even more. And they’re also missing out on new benefits they might have been able to secure in an annual negotiation.
Read Knepper’s blog to find out more about how travel managers can balance convenience and savings.
For detailed information on the latest car rental statistics and strategies, download the updated Advito Industry Forecast, available at advito.com.