It’s Going to Be a Great Summer for Car Rental Companies—But Not for You

Two years ago, Hertz Global Holdings Inc. had a near-death experience and filed for bankruptcy protection. A year later its profits are soaring, and rival Avis Budget Group Inc. had a record first quarter. That’s great news for investors, but it’s not so great for travelers this summer.

Rising prices at the rental counter are what brought back profits. Both Hertz and Avis say their rates rose at least 25% in the first quarter compared with the same quarter in 2021, which typically has lower travel activity than summer months. Hertz charged on average $59 a day, and Avis charged almost $54. Avis’s revenue per day is on par with pre-pandemic levels; Hertz’s was up 40% over the same period in 2019, when cars rented for $40 a day. That’s before all the travel taxes, too. Add in those and travelers could be paying $90 a day on average, says Neil Abrams, president of Abrams Consulting Group, which tracks rental car activity.