Hertz increases rental prices by up to 10%
By Murray Pollok30 October 2008
Hertz said its equipment rental business will increasing its short term rental rates by 10% with a 5% increase on long term deals. The company reported similar increases in its prices for car rentals. Hertz said pre-negotiated contract rates would not be affected by the increases.
Mark Frissora, Hertz's chairman and chief executive officer, said, "We are committed to our overall strategy which will align rental revenues more closely with our overall costs. We assessed inflationary trends in key areas, including vehicle maintenance and repairs, depreciation and other fleet-related costs, facility expenses and commodity prices."
Meanwhile, Gerry Plescia, president of Hertz Equipment Rental Corp (HERC), told IRN that the company was re-balancing its rental fleet towards industrial-related products and aerial platforms in the face of the current economic downturn.
Mr Plescia, responding to questions submitted by IRN, wrote, "As earthmoving rental demand declines, HERC is adjusting its fleet to meet new growth markets, such as expansion of its industrial and aerial capabilities....Also, we are shifting our resources toward stronger geographical areas in North America, and globally." The company opened its first rental depot in China, located in Beijing, in July.
Read the Nov-Dec issue of IRN for the full Hertz question and answer interview.