Hertz Rolls Out Reduced Refueling Charges

Hertz today is launching a new refueling program that reduces the amount charged per gallon for travelers who don't fill up their tanks before returning the car, and offers a discount for travelers who pay for a full tank of gas up front. The program applies to all corporate and some licensed locations in the United States, Canada, Puerto Rico and St. Thomas.

Previously, those who did not refuel a rental car prior to returning it were charged approximately $7.99 per gallon, said Paula Rivera, a spokesperson for the Hertz Corp. Now, travelers will be charged market price for fuel, plus a $6.99 fee. For those who choose to pay for a full tank of gas at the time of rental, Hertz will now charge market price, with a 15 cent per gallon discount. In Canada, the discount is 5 cents per liter.

Customers using the old fuel option said that "it was inconvenient, it was confusing and it was expensive," Rivera said. "What we wanted to do was really meet those concerns and create a program that's pretty streamlined, that won't provide customers with sticker shock."

It remains to be seen whether other car rental companies will follow Hertz's lead, said Neil Abrams, president of Purchase, N.Y.-based Abrams Consulting Group. "When one company does set a pattern, eventually others follow."

Dave Kilduff, managing director of ground transportation for Carlson Wagonlit Travel's CWT Solutions Group, added, "The others are going to watch and see the reaction—if it's positive or negative—and move accordingly." However, "corporations should still have their people refuel before they bring it back," Kilduff said.

While Hertz's new options will make a small difference in cost savings, the real benefit is the reduction of the "hassle factor," said David Mitchell, vice president of industry relations for BCD Travel. He added the options probably would not change corporate policies about refueling. "It takes some of the pressure off that you've got to bring it back full," he said. "This is kind of a reversal of what you've seen in the rental car world, where there are a lot of fees piling up."

Stacy Collins, travel manager for the Delta Companies, said that while she is not yet sure how the new program would impact her company, the potential time savings would be beneficial. Hertz is one of the Delta Companies' preferred suppliers.

"A lot of times our travelers have really short trips and they go and come back in one day," Collins said. "If time was an issue, it will be nice that they don't have to stop and refuel the car. That would be the biggest benefit for us." Currently, the company asks travelers to return the car refueled, but it is not mandated.

"We'll be able to put back into the corporate work force thousands upon thousands of man hours because it will save those corporate employees from having to drive around looking for gas stations in order to refill," Hertz's Rivera said.