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Rent Sure Series

In these COVID-impacted times, everyone has developed a sense for what they deem “safe.” A quick assessment of a situation is often all that is needed to determine one’s comfort level. For many travelers, one mode of transportation stands out above all others in eliciting an immediate sense of safety: renting a car. According to a recently released 2020 North America Rental Car Satisfaction Study from J.D. Power, 60,000 airport travelers rated the rental car portion of their trip as the least concerning from a safety standpoint, with only 2% of respondents expressing worries over the safety of the car rental process. Michael Taylor of J.D. Power points to many reasons for this, primary of which, according to Taylor, is “The rental car experience is inherently socially distant.” Jennifer Corwin of J.D. Power agreed, adding that those who choose to travel via rental car get the “ability to control the environment around them and to have limited interactions with other people.”  This experience stands in sharp contrast to alternative ground transportation options, including taxis, shared rides and public transportation.

Notwithstanding the socially distant nature of car rental, travelers still want to confirm that enhanced cleaning measures are being taken by car rental companies. “The question of vehicle sanitization became the most asked question of us as customers were looking for assurances that these steps had been taken,” said Richard Lowden, CEO of the U.K.-based car rental agency Green Motion.

Hertz Gold Standard Clean

Car Rental companies have responded to the consumer demand for a safe and clean rental experience in various ways, including enhanced sanitization process, mask requirements and contactless pickup and return. For Hertz, and the Dollar and Thrifty brands it also operates, the development of the Hertz Gold Clean Seal is one of the most visually prominent displays of the expanded cleaning procedures.  According to a Hertz representative, the seal is representative of “an enhanced 15-point cleaning and sanitization process that concludes with each vehicle being sealed before each rental to give customers total confidence when they rent a car. Key steps in the 15-point process entail cleaning and sanitizing the interior and exterior of the vehicle, including all contact surfaces, with an EPA-approved disinfectant for use against the virus that causes COVID-19. Sealing each vehicle is a first-of-its-kind practice in the car rental industry and one we believe will give customers added peace of mind knowing they are the only person to enter the vehicle after it’s been thoroughly cleaned and sanitized,” the Hertz spokesperson said.

Contactless rental options have soared in popularity in response to COVID concerns. At Green Motion, renters are encouraged to use a contactless rental service that, according to Lowden, “dramatically reduces the number of contact points which in turn dramatically reduces the risk of cross contamination.” Hertz, on the other hand, offers what one Hertz spokesperson characterized as “a low touch rental experience through our Hertz Gold Plus Rewards loyalty program, which is free to join. Members can skip the counter, go straight to their vehicle and drop off their car and go when they return with our eReceipts and eReturn service.”

While a rental car is no doubt a safe choice for an upcoming trip, many destinations are too far flung to reach by car. In those cases, a flight might be necessary. Fortunately, there is good news on that front too. Recent studies have shown that the interior cabin of an airplane contains one of the world’s safest ventilation systems. In fact, a recent US Defense Department study revealed a near zero risk of virus exposure where masks usage is enforced. The study found only 44 suspected cases of on-board transmission, relative to a billion pandemic-era enplanements. Airlines are enforcing mask requirements, as well as many leaving the middle seat open for further distancing.

While traveling may not be in the immediate plans for some, travel planning will hopefully return with more force as vaccines are rolled out and travelers look forward to returning to their favorite destinations.

Various studies, research and general questions have been presented around the risk related to renting a car.  MIT, Good Housekeeping and Business Insider, among others, are good resources to learn more.

Rent Sure Series

The effects of 2020 will impact the travel industry for some time, particularly throughout 2021.  For rental cars, one major impact could be that the daily rates increase over their historical averages.  There have already been some instances of this happening in the United Kingdom, San Antonio, TX and even in Tasmania.

Our advice?  Reserve your rental car as soon as possible for any potential upcoming travel plans.  There is a good chance that the prices will increase as the date draws near and most rental car reservations are flexible and have free cancellation policies.

Why would this be with travel demand at a lower rate than before?

Rental fleet is drastically depleted.  Car rental companies have adjusted to changed landscape and level of demand by reducing their fleet size.  Reports indicate that the number of rental cars currently in active fleets at the major operators may be 50% lower than last year.  This decrease makes sense as rental car suppliers have adjusted to flight throughput of 40% of last year’s activity.  The fleet comprises of the largest cost factor for rental car companies and the global pandemic called for many cost cutting actions.

Car rental companies became experts at selling their fleet directly to consumer.  Usual fleet cycles include returning leased vehicles, offloading owned fleet wholesale at auctions and selling directly to the public.  The last method was heavily focused on early in the pandemic.  That focus led to some great internal improvements in processes for rental car companies.  They now know that if needed, the fleet can be more quickly disposed by utilizing the direct to the public route.

Acquiring new fleet may take longer than normal and need to overcome higher risk avoidance.  Car Rental cancellations spiked in March and April 2020 and operators are wary of being too aggressive in advance fleet increases until circumstances  normalize.  So, many fleet planners will wait and see before committing to fleet purchases and leases.

Finally, pent up travel demand may spike by Summer 2021.  The roll-out of effective vaccines and other measures will allow and encourage the public to travel again.  And, travel they will.  The level of pent-up travel is sky-high with many considering once-in-a-lifetime trips while others are considering visiting their favorite locations again.  In any case, the demand for travel could explode and the supply of rental fleet may not be able to keep up with it.  

Rent Sure Series

Having a sanitized and clean rental car is vitally important, but another aspect of your rental car booking ranks just as high.  The flexibility to modify your auto rental reservation or even cancel that booking is absolutely necessary in 2021.  So, make sure when reserving that rental car online that the modification and cancellation policies have been reviewed.  

Here are some of the most common types of rental car reservations.

• Email and/or phone number required:  Simply provide your email address and/or phone number to confirm the reservation.  A confirmation email will be sent and any changes or cancellations can be made through the links provided in the email.
• Credit Card required:  For this reservation, a valid credit card must be providing at the time of booking.  The card will not be charged, but may be authorized.  In some cases, a cancellation window will be provided (like 24 hours before pickup) before any penalties would occur from the car rental company.
• Deposit required:  At the time of reservation, a deposit will be made.  This deposit is applied to the rental once it is picked up, but usually is refundable if the reservation is cancelled within the appropriate window ahead of the pickup.
• Pre-paid:  The entire estimated total of the rental is paid at the time of reservation.  This is usually results in a discounted rental car rate and can be refunded if cancelled within the pickup window.
• Hidden Supplier:  Some rental car offers are represented by the website’s brand and the underlying car rental supplier is hidden.  That supplier is then revealed once the reservation has been completed and paid for fully.  This type of reservation usually includes a steeper discount but is also more strict in cancellation policies.

While cancellation policies can change from time to time and vary based on the type of reservation you made, here is a summary of some of the current car rental cancellation policies.

***Be sure to look for any booking fees.  AutoRentals.com does not charge for any booking or cancellation fees.