Hertz has implemented a "broad-based price increase"
across Hertz, Dollar and Thrifty U.S. rental locations for rentals beginning
June 14, the company reported on Friday.
For airport car rental locations, Hertz will increase prices
$5 per day and $20 per week. Off-airport rental rates will rise $3 per day and
$10 per week.
Hertz based the increase on "expected strong seasonal
demand," along with new plans for capacity discipline. For full-year 2015,
Hertz plans to increase year-over-year capacity 1.5 percent to 2.5 percent. That
is below the expected level of air passenger demand growth during the period,
MKM Partners managing director Christopher Agnew said in a research note published
Friday.
During the first quarter, Hertz U.S. car rental revenue
declined 3 percent year over year to $1.5 billion, as both total transaction
days and revenue per day declined. International car rental revenue declined 9
percent year over year to $436 million, but that owed to currency fluctuations.
Excluding currency effects, international car rental revenue increased 5
percent year over year, and international transaction days increased 4 percent.
Hertz presented its first-quarter results as an update, as the company has not filed a full financial report since March 2014 and is reviewing financial statements from the past three years. The company expects to file official quarterly earnings for 2014 and the first quarter of 2015 no earlier than the middle of this year.