Car Rentals Do Group Deals
<B> Car Rentals Do Group Deals</B>
By Chris Davis
Though car rental is not a prerequisite for a corporate meeting, Hertz and Dollar are shaking up this quiescent sector of the industry by developing volume-based corporate programs that offer discounted rates for repeat rentals.
The Hertz Corp. is rolling out a new program that offers discounted meeting rates based on the number of meetings held annually. And Dollar Rent A Car, saying that it sees corporate group business as a potential entrée into more lucrative transient accounts, is pursuing the segment with new interest.
Despite their disparate offerings, more car rental companies are dipping their toes into the group negotiations pool as they realize that corporate meetings can help get cars out of their lots. "Car rental rates are part of the overall package that meeting planners and travel management groups consider in destination selection, but not a huge part of it," said car rental consultant Neil Abrams of Purchase, N.Y. "A lot of people won't rent cars at a corporate meeting. But there still is an opportunity for the car rental industry."
Abrams said corporate meeting deals most often still are negotiated on an event-by-event basis, with rates dependent on the group's size and the meeting's venue. Still, some car rental companies are warming to the idea of setting volume-based discounts that would apply year-round.
Hertz is rolling out a "meeting planner's club" that offers preferred rates on corporate meetings as well as personal rentals, said director of meeting services Lynn Kalagassy-Schiavo. Members are chosen based on a "combination of volume and frequency."
Hertz also offers meeting rates for groups of 10 or more, and a multi-meeting rate for those responsible for planning at least four meetings a year. Each customer is given a corporate identification number, so Hertz's reservation system automatically can compare the group rate to the corporation's transient one, and book the lower rate.
Dollar Rent A Car, meanwhile, is trying to boost its share of the corporate meetings market through flexible group deals. "In the past, Dollar has not focused on the meetings market, but our intention is to become a more significant provider of meeting car rental services," acknowledged Karen Nicola-Preston, Dollar's director of government and association programs, whose responsibilities now include corporate meetings. She said Dollar sees the group market as a potential gateway to more lucrative corporate business, and will negotiate corporate meeting deals with or without an accompanying transient contract.
"Dollar targets groups that have a history of being able to produce the business they predict," she said. "We're most interested in groups that are willing to make multi-year deals and direct their other travel to us."
<CENTER><B>Meeting Discount Holdouts</B></CENTER>
Still, not all of the players have jumped on the group rental bandwagon. Neither Avis nor National Car Rental offer volume-based meeting discounts, though they do offer a flat nationwide meeting discount that any company can use. Groups can find cheaper rates by moving to weekends and taking advantage of leisure-oriented weekend specials, or using negotiated transient rates, said Kevin Danaher, Avis vice president of new business and segment development.
National also targets weekend corporate meetings business, said vice president of sales Jim Wood, but otherwise sticks to its overall negotiated rate. "Corporate business receives the same rate for meetings and conventions as they do for their regular travel needs," he said. "It's all built into their regular rate structure."
Dollar's Nicola-Preston predicted that it's only a matter of time before the Internet plays a larger part--and leaves room for additional negotiations.
"Internet reservation processes for meetings are going to become more prevalent," she said. "The meetings market will move in the same direction as the rest of the travel industry; traditional benefits like complimentary cars may disappear and commissions to travel agencies may decline.