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Avis and Hertz Struggle to Find Path to Car Rental Profit | Skift

Avis’ struggles point to the reality that competition with ridesharing companies and its car rental rivals has made it difficult to raise prices while competing for customers. The company is seeing corporate customers renting for a longer span of time, but it lacks the ability to raise prices and drive more revenue.

“Corporate… volume has finally now flattened out or starting to get a little bit better,” said De Shon. “Pricing is still under pressure, particularly in the large commercial segments, but we are growing length. And particularly this last quarter, we grew length fairly significantly in the small business segment. And of course, that doesn’t help pricing, but it does help the profitability of the business overall. So we’re all for that when we can grow length and grow into more profitable rentals. So we need to continue working on growing the volume back now that we’ve kind of plateaued on the volume decline that we’ve had previous, and we got to start kind of growing our rate per day.”

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Avis and Hertz Struggle to Find Path to Car Rental Profit.

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