Remaining Car Rental Cos. Match Commission Cuts

The last of the major car rental companies have followed in eliminating base commissions for negotiated corporate or government rentals booked by U.S. and Canadian travel agents. Budget Rent a Car late yesterday and ANC Rental Corp.'s Alamo and National this morning announced their decision, following Hertz and Avis, which cut base commissions last Wednesday and Friday, respectively. Budget said its travel agent loyalty program, Unlimited Budget, will continue to pay on all types of rentals.

Both ANC's brands and Budget said they needed to revise their commission policy to remain competitive within the industry. Mike Going, ANC senior vice president of worldwide sales, said the brands will keep in place preferred relationships as part of their business strategy. "We can't afford not to make this move," Going said, referring to the need to eliminate commissions. Two-thirds of National's business is transacted through travel agents, and 40 percent of that business will be affected by the change. All in all, ANC said it expects to see $10 million in savings.

Budget's cut is effective immediately, while Alamo and National's changes will take effect on April 11.