As some of you know we at Florida Homes and Travel sell car hire to Villa Owners and holidaymakers, we used Florida Car Hire as our "broker", so as far as we were concerned FCH dealt direct with Dollar, we got excellent rates to pass on to our clients because we provided them with a number of bookings per month.
Unfortunately it seems that FCH did not deal directly with Dollar, the money that you give to FCH goes through at least 4 other "brokers" before it gets to Dollar!! If any 1 company in this chain does not pay their bills, all companies below it are in trouble and unlikely to have the vouchers honoured, which is exactly what happened to us yesterday (I want to point out at this time that I did not know this until yesterday, and yes I should have done my homework)
We have booked all of our clients new car hire at our own expense, people who have paid by credit card direct with FCH will also get a refund via their card company.
Where do you go from here? The truth is that no one broker is totally safe, considering that Alamo are in or have just come out of Bancruptcy protection in the states. In my opinion it is safest at the moment to use a broker at the top of the chain, such as Autobookers or Suncars or go direct with the hire company.
The end result in all this, is that car hire rates are going to rise! No doubt! The car rental industry is in turmoil right now and the next Hire for Lower/Autos Abroad/Usa Rentacar/Florida Car Hire (These have gone bust in the last 7 days) is just literaly around the corner. I will do a lot of research over the next couple of weeks and let you know what I come up with.
Elle