Triangle Trip

Over the President’s Day long weekend (and a week school break in some major US cities), I noticed a major spike in rental car prices. Cars are going for $125 to $150 per day in the Great LA area for National Car Rental vs. $55 per day for Emerald Club Members and Corporate rates. I called National and asked why the price was so high and the representative didn’t have an answer.

At the same time, I tried to get a car on Hertz and Budget and noticed they were just completely sold out. Hertz and Budget did not apply any price gauging tactics like National. The bigger question here is:  Are car rental companies implementing yield management models like airlines? If so, this will have an impact on the industry. National is probably ahead of its time on this one strategy.

In summary:  Just book your cars in advance as 99% of the car rental companies do not charge you for a no show.

I am a frequent car renter as I do not own a car myself. I use car rentals to earn airline miles to keep my frequent flyer accounts active as most have expiration rules. Car rental companies claim to be very flexible when it comes to earning points.

All car rental companies allow you to either:

1. Earn Car Rental points which can be converted to free rental days or upgrades
2. Earn Frequent Flyer miles
3. Earn hotel points

Of the three choices, the only one that is worthwhile is #2 — Frequent Flyer miles. Here are the reasons why:

1. Car rental points do not hold value. Most car rental companies (mainly Hertz) change their redemption policy on an annual basis and increases the number of points you need to get a free car rental or upgrade. All major car rental points expire after one year if you do not use them.
2. Although all car rental companies list hotels as partners but you do not get hotel points from your rental unless you are staying at the hotel. You will also need to book the hotel during your car rental or book the car rental from the hotel’s website. This is a huge scam. Most car rental companies will not give you any points if you do not meet the requirements which appears as fine print.

In summary, always bank frequent flyer miles whenever you rent a car. Additionally, bank it on Northwest’s WorldPerks account as NWA is the only airline that doesn’t carry a surcharge at Hertz, Avis, and National. All rental car companies will charge you $0.50 per day for accumulating points on other airline programs aside from Northwest.

Regardless if you’ve corporate accounts with Hertz, Avis, Budget, etc., National Car Rental offers the most flexibility when it comes to return locations.

Hertz and Avis offer one way rentals but they often want you to stick to the itinerary. Any last minute changes will cost you $75 to $100. National however allows you to return it to any of its regional locations.

I had a car from Hertz last month from LAX and needed to return to Burbank due to a flight change. Hertz wanted to charge me a drop off change fee of $75. I had to escalate the issue to a supervisor to get rid of the fee.

I had a car from National last week that was picked up from LAX and scheduled to be returned to Burbank. Due to my travel schedule change, I had to drop off the car at SNA. I rang. National and just told them about the change and they switched my return without hesitation. I actually didn’t have to call. National is very good about just accepting cars at their facility. I also had similar experience in NYC when I said I would return the car at the 43rd street facility and dropped it off at the 12th street lot.

National is flexible and they get business travel!