Car Rental Companies: We Need Agents

While some travel agents say car rentals are no longer a profitable portion of their sales, car rental suppliers say travel agents are integral to the operations– despite the problems some encounter trying to collect on their commission.

Travel agents have had concerns about the profitability of selling car rentals to their clients. But car rental companies need agents, while copping to the many obstructions agents face when collecting commissions.

A spokesperson for Avis/Budget told Travel Market Report that agents are, “a vital part of the customer experience and outstanding representatives of our brands. They continue to represent a significant source of bookings and revenue.”

Highest share
Agents represent more than 25% of Hertz’s business and the company enjoys the highest share of agent business in the industry,  according to Maurice Honor, Hertz’s vice president of travel distribution sales.

Hertz’s commissions are 5% on leisure/discretionary rentals and 5% on Hertz Business Rewards (Hertz’s program for small businesses). Agents are paid on a monthly basis through a third-party payment processor that handles a lot of industry systems.

Honor said Hertz pays the lower value of a reserved or rented vehicle, as the travel agent wouldn’t have been involved with the actual transaction at the counter.

If Hertz changes a reservation with an upgrade or extension, “we make every effort to ensure the agent receives the commission the car deserved.”

How to get paid
As for payment, Honor said, “Provided that the agent’s IATA number is in the reservation, our process is to pay the agent in a timely fashion. Of course, should agents have any concerns about commission payments, we do invite them to contact us so that we can research and correct if necessary.”

An Avis spokesperson said agents are paid on a monthly basis but also said they do not disclose information about commissions.

If a customer downgrades on the vehicle category or reduces the length of the rental, according to car rental sources, the company will pay on the actual rental rather than the reserved amount.

Cruise control
So how should agents sell car rentals, in order to make the most money with the least hassle?
As the Avis spokesperson said, “it’s crucial to first understand the customer’s needs.”

“How many people are traveling? How many bags might they bring? Are they going to have golf clubs with them or be needing to transport a stroller?” the spokesperson asked.

“By looking at these needs during the planning process, travel professionals can help customers locate the right vehicle and make the trip go much more smoothly.”

Agents can also enhance commissions by booking larger cars.

Go international
Several agents said international bookings are one of the keys to making a profit on car rentals.
“Auto Europe is usually reliable,” said Elaine Carey, a Travel Experts agent in Whispering Pines, N.C., a Virtuoso agency. “When issues arise, they will be accessible. And the commissions can be substantial.”

Agents said they receive 10-12% commission on many international bookings.

“Some agents take the easy way out and book these in the GDS, but we find that if you go through a company like Avanti, Travelbound or Auto Europe, you will get 10%,” said Robbie Louchheim, president of Travel Destinations, Inc., a host agency in Scottsdale and an Ensemble member.
“It’s worth the phone call.”

Agent loyalty
Like most vendors, car rental companies offer loyalty programs for agents.

Since 1997, Unlimited Budget has offered dollar rewards for a dozen travel brands that can be loaded onto a debit card. Awards are earned on all completed Avis and Budget rentals in North America.

Still, agents would like to see incentives like free days for clients and guaranteed commissions. They would also like to see improvements in way the incentives work.

“Often, vendors have multiple specials with day of week and other stipulations that make it confusing and time consuming to book especially when I cannot depend on receiving commission to compensate for my time,” Nancy Moody, CTC, a Travel Experts agent in Raleigh.