Car rental industry revenue
Year Revenue
2011: $22.4 billion
2010: $20.6 billion
2009: $20.1 billion
2008: $21.5 billion
2007: $21.5 billion
Source: Auto Rental News
More Americans are expected to travel during Labor Day weekend this year, and a growing percentage are turning to rental cars for the short-term trips, according to industry experts.
AAA estimates that 33 million Americans will travel during the holiday period, which it defines as Thursday through Monday. The travel association noted a drop in car rental prices for this year, which has helped lead to a boost in demand for the service. Enterprise Rent-A-Car announced last week that reservations for the holiday weekend period were up about 25 percent from last year.
Experts said a number of factors have led to a boost in car rentals. Daily rates have dropped as much as 10 percent from last year, and in some areas in the region the decrease has been closer to 50 percent. In Cleveland, the daily rate dropped from $39 to $20, AAA said. Area-wide statistics are not kept from the southwest Ohio region.
Other factors in a family’s decision to rent a car include not wanting to add mileage to their own cars, needing a different-sized vehicle for a larger travel party or acquiring a more fuel-efficient option for a longer trip.
“That is definitely a trend we’re seeing,” said Cindy Antrican, a spokesperson for AAA, of increased car rentals for holiday trips. “When the daily rates are where they are, it can be cheaper, considering all the factors.”
The holiday weekend activity increase comes at a time when the car rental industry has reportedly rebounded from a recession dip. Trade publication Auto Rental News reported that industry revenues in 2011 were $22.4 billion, a 12 percent increase from 2009.
Because about 85 percent of holiday travelers are expected to go by car, many have different needs from their day-to-day vehicle. If families with children don’t often travel long distances by car, they might want amenities like DVD players or other features for kids that can come with a rented vehicle. Some might need a larger vehicle to store luggage and supplies for the weekend, considering the average trip is expected to be about 626 miles.
Brock Setmire, a regional marketing director for Hertz Car Rental, said the general trend in demand this year has been larger vehicles.
“Some people might have chosen to buy smaller,” Setmire said. “If they need a bigger (vehicle), they might have to rent one.”
Ohio’s relative proximity to numerous larger cities and attractions makes driving for holidays convenient, said Mike Filomena, Enterprise Rent-A-Car’s vice president and general manager for Central Southwest Ohio. Rates could even decline further after this weekend, which serves as an unofficial close to the summer for many, he said.
“Typically, once school starts our business will level off a bit,” Filomena wrote in an email. “We will have more vehicles available, and consumers will be able to get a great price.”
But first, they have to make it through a holiday traveling environment that has become less favorable this week. Higher gas prices have arrived since AAA made its travel forecasts, but the fuels costs and threat of rain because of Hurricane Isaac remnants should not largely change the number of people traveling, Antrican said. Many have already made reservations and plans, so they might instead choose a fast-food meal instead of a sit-down restaurant and other cost-cutting methods.
“Folks around here like traveling for the holiday weekend,” Antrican said. “They plan ahead, so they’ll make it work.”
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