Avis Europe to Raise Rates Significantly

March 5, 2009 on 11:54 am | In Europe travel, Uncategorized, car rental, travel industry, travel news | Comments Off

While many travel service providers are discounting their rates to entice travelers to use their services in these trying economic times, some companies just do not seem to appreciate the consumer dynamics in this market.  Today, we read that Avis Europe is planning on raising car rental prices 10%.  Avis Europe’s Chief Executive, Pascal Bazin, said the company “…would lead the industry….”  I had  never thought of “racing” to be the first to announce price increases that would decrease my competitiveness and lead to less people using the serivces provided by my company.  If you would like to read more about Avis Europe and its plans, you can find the article in the Financial Times.

We rented from Avis during a recent research trip in Germany and the service was great.  The car included GPS at no extra charge and was an upgraded model.  It ran well, was a pleasure to drive and was well maintained inside and out.  In addition, the rates then charged by Avis were competitive. 

I am sure other reputable car rental companies will increase their rates and follow the lead of Avis.  There will be some that don’t – and those will be the ones we will examine when considering our next European car rental.

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