April 4, 2002
Hertz eliminates travel agency commissions on corporate and government rentals
Park Ridge, New Jersey – The Hertz rental car company has eliminated base commissions paid to travel agents on car rentals, booked after April 4, 2002, primarily for U.S. and Canadian corporate and government accounts with individually negotiated rate programs.
The change does not affect travel agency commissions for leisure car rentals, or for business rentals by other corporations and associations that do not have individually negotiated rate arrangements. Travel agency override and bonus programs, for all business and leisure rentals, are not affected.
If a travel agency anywhere in the world books rentals for a customer with an individually negotiated rate program, no base commission will be paid to the travel agency for rentals in the U.S. or Canada. Also, no base commission will be paid to U.S. and Canadian travel agents for outbound rentals for customers with negotiated rate arrangements.
Hertz attributed the change in commission policy to continued weak travel demand, and the need to further reduce costs without affecting customer ervice. The Company noted that rates in negotiated programs are currently at 1991 levels while CPI inflation has increased by more than 30% over the same period.
Hertz, a wholly owned subsidiary of Ford Motor Company, is the world’s largest car rental company, operating from over 7000 locations in more than 150 countries.