For the quarter ended March 31, Hertz posted a loss applicable to shareholders of $163.5 million, or 51 cents per share, on hefty restructuring charges, as well as weak demand and pricing for its rental cars and equipment.
One would think Hertz, would make a sound financial decision to regroup and emerge from a poor quarter, instead they plan on punishing their loyal customers for their poor management decisions that are causing them a financial hemorrhage.
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CNN reported in: Tire fees? Beware of new car rental surcharges, that Hertz plans on charging cancellation penalties, energy surcharges and facilities fees. One might expect to see these extra charges on their next car rental bill.
What the hell is Hertz thinking? According to CNN, they are quietly adding new surcharges designed to lift revenues in a recessionary economy.
To get an idea of how absurd it’s becoming, a customer found a mysterious $5 fee on his Hertz bill recently, which a representative described as a cancellation fee. Car rental companies typically don’t charge their customers for cancellations, so the customer, who frequently rents from Hertz, said he didn’t want another car he’d reserved for later. "That’ll be $25," the agent told him. He jokingly said he would not cancel but just be a no-show. Hertz representative told him that would result in a $50 fee.
Another customer noticed a $1 "energy surcharge" on his Hertz car rental bill recently although his previous rentals didn’t have one. A company spokesperson told him cancellation fee, which was added in December, applied only to prepaid reservations and is meant to "reimburse Hertz for the paperwork and billing involved with a prepaid reservation." The fee also covers part of the company’s cost of holding vehicles for prepaid reservations. The energy surcharge, which was added in October, bills all rentals in most states an additional $1 a day "to offset the increasing costs of utilities, bus fuel, oil and grease."
Companies such as Hertz must learn and adopt very fast and do the right thing or be force into extinction. In a society such as ours, that process is called creative destruction. The destruction usually starts when Hertz’s loyal customers start to become frustrated and feel unappreciated and switch to a more friendly competitor.
Sound Off: Have you gotten any charges lately for cancellation, energy surcharges or facilities fees.
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hey this is a very interesting article!