Avis price rise policy in place.

FURTHER price increases are on the way for Avis Europe customers, the car hire giant signalled yesterday.

The company has kept a "very tight" rein on fleet costs in the face of lower demand and pushed up prices for individuals and businesses.

The Berkshire-based firm said it "continued to seek opportunities" to push up prices and has more hikes on the way for customers in 2010.

Avis is also in talks over raising rates with contracted customers such as businesses and insurers who offer replacement car services.

The company, which cut car numbers by almost a fifth to 84,000 at the half-year stage, has put in place the policy of price rises and fleet reductions in order to weather the recession and cut overheads.

The smaller fleet has boosted usage rates and eased costs as well as offset declines in business volumes.