FILE PHOTO: A logo of American car rental company Hertz is seen at Bordeaux Airport in Merignac, southwestern France, February 4, 2016. REUTERS/Regis Duvignau//File Photo
March 18, 2022
By David Shepardson
WASHINGTON (Reuters) – Two Democratic lawmakers in the U.S. House of Representatives on Friday asked Hertz Global Holdings and Avis Budget Group to answer questions about rising rental car prices and higher industry profits.
MP Raja Krishnamoorthi, chair of the subcommittee on economic and consumer policy, and MP Katie Porter said both car rental companies appear to have used their market position to raise prices as costs fell.
They said in a statement they wanted documents and information by April 1 “from both companies explaining the increase in rental car prices despite falling costs, and a list of any known investigations into these price increases.”
The companies did not immediately respond to requests for comment.
The lawmakers’ letters said the financial results suggest the companies “may have prioritized maximum profits and
Shareholder distributions at the expense of consumers” and “possibly
Engaged in predatory business practices during the pandemic and took advantage of consumers who depended on affordable rental car prices.”
Last month, Hertz posted record fourth-quarter adjusted profit as demand for rental cars remained strong but post-bankruptcy restructuring costs resulted in a large net loss.
Avis Budget announced in February that it had achieved record revenues and net income for the quarter ended December 31.
The higher revenue is the result of a sharp rise in prices across the industry as customer demand outstrips vehicle supply and consumers return to the rental counter for leisure and business trips, analysts say.
(Reporting by David Shepardson; Editing by Cynthia Osterman)
https://www.oann.com/two-lawmakers-want-hertz-avis-to-answer-questions-on-rising-u-s-rental-prices/?utm_source=rss&utm_medium=rss&utm_campaign=two-lawmakers-want-hertz-avis-to-answer-questions-on-rising-u-s-rental-prices Two lawmakers want Hertz and Avis to answer questions about rising US rental rates