Hertz to buy rival Dollar Thrifty

[bicker]

More consolidation in the travel and leisure industry...

http://www.msnbc.msn.com/id/36776113/ns/business-autos/

It will be interesting to see the analysts' reaction to this.

 

[Detailor]

It will be interesting to see what happens to prices - specifically for Hertz, Dollar and Thrifty but also for the rental car industry as well - in light of this merger and the general trend toward greater demand and somewhat higher rental prices over the past few months. I think pricing could go either way but suspect that they will continue to inch upward with the lowest prices available in the two or three weeks before any given rental period (holiday periods excepted).

While Hertz says that the Dollar and Thrifty brands will continue to operate, the company indicates that the Hertz, Dollar and Thrifty fleets will be combined immediately. And what about Hertz' Advantage subsidiary? Will that one continue on or be absorbed into Dollar/Thrifty as the lower cost, leisure alternatives to Hertz' business class option? Even if it remains in the market and there's no change in the number of choices in rental car brands I believe that potential changes in business strategies may impact consumers looking for rental car deals.

Dick Taylor

 

[Lewisc]

I'd expect reduced competition will continue the trend to increased prices. Hotels and airlines can justify selling the last room or last seat at a very low price. The incremental costs for a rented room or occupied seat is very low.

Rental agencies are starting to learn the same thing principle doesn't apply to them. The resale value of the car is a function of miles on the odometer. It makes sense to let the car sit on the lot rather then rent it for a low price. It's not enough to just cover the cost of cleaning the car. The prices many of us pay in Orlando is below those numbers.

Car mfg no longer offer generous lease and buy backs to rental agencies.

 

[JB2K]

More consolidation in the travel and leisure industry...

http://www.msnbc.msn.com/id/36776113/ns/business-autos/

It will be interesting to see the analysts' reaction to this.

Honestly, I think for the near-term, they might operate as a dual-brand, much like National/Alamo has.

As for WDW, I wonder (once the deal closes) if we will soon see a consolidation of the Hertz facility at Shades of Green and Dollar's on-
property operation at the Regal Sun Resort (Downtown Disney)?

On a personal note, the merger will eventually mean increased prices for all.