Enterprise sees increased rental demand despite higher gas prices
The New York Times interviewed Andrew C. Taylor, chairman and CEO of Enterprise Rent-a-Car, to see if he expects gas prices to affect his company's services. Taylor actually expects the opposite, predicting more Americans will be traveling on the road this summer than last year, with many demanding a rental vehicle. According to Taylor, customers focus on more convenient vehicles for their trip than gas prices, renting larger vehicles such as SUVs to carry extra luggage, etc. Of course, he acknowledges that people may be more likely to request smaller cars when driving solo or with few pieces of luggage. Other issues discussed were the off-airport market trend, availability of "green" vehicles, and demand for technologies such as GPS. More details and link to the extended interview can be found at the link.
[Source: New York Times]
Reader Comments (Page 1 of 1)
Trevor 8:03PM (5/17/2006)
I didn't know Steve Martin ran Enterprise....wow. What are hollywood actors going to come up with next?
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P.L. 9:13PM (5/17/2006)
What Taylor expects and what he will actually receive will be two different things.
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Harrison 4:36AM (5/18/2006)
That guy is smart, in saying that families traveling will rent larger SUV cars, but they are limited in what they can do, but if he thinks he is right, why are so many rental companies squeezed tight on demand for compact cars at this moment? The Wall street journal did an article where rental companys are actually decreasing the price of a SUV relative to the price of a compact and increasing the price to rent a fuel efficient car because the demand for them is so great.
So sorry steve martin of enterprise, but buying more SUVs for the summer season may lead to a stock drop.
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Razib Ahmed 6:37AM (5/18/2006)
It is natural that more people will travel for summer than last year. This happens all the time- does not it? The economy is growing and that is why more people will travel in summer. Secondly, travelling in summer is just one time affair and people dont think of gas price. Instead they think of a happy vacation.
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Dryloch 8:51AM (5/18/2006)
I think Enterprise is a great company. They have excellent prices and the cars are just as nice as Hertz or Avis. If you need a cargo van they are awesome you can get oen with unlimited miles for 50.00 a day.
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rw 9:49AM (5/18/2006)
I am so glad my daddy started this company so I can be a billionaire just like him. I then get to put big impressive things after my name like chairman and ceo. But we all know daddy still runs the company.
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P.L. 10:07AM (5/18/2006)
And here's what Taylor will actually see...
"How do consumers plan to adjust their budget to account for the gas price hikes? About 45 percent of those polled said they will simply drive less. Additionally, 37.2 percent said they plan to decrease vacation and/or travel, while 36.2 percent will cut back on dining out."
http://money.cnn.com/2006/05/18/news/economy/retail_gas/index.htm?cnn=yes
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Mark MacLeod 2:22PM (5/19/2006)
Glad I'm not the only one that thinks he looks like Steve Martin. I even made a separated at birth thing with the two of them.
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