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HERTZ ANNOUNCES HIGHER CAR RENTAL RATES IN ANSWER TO HIKE IN '94 MODEL FLEET COSTS

 PARK RIDGE, N.J., Sept. 28 /PRNewswire/ -- The Hertz Corporation, the world's largest car rental company, has announced increases of approximately 12 percent in car rental prices in 29 U.S. cities, effective immediately for rentals starting Oct. 3, 1993, in response to sharply higher fleet costs for 1994 model cars, which begin arriving next month.
 "For the second consecutive year, the car rental industry is facing 30 percent increases in fleet costs," said Hertz Executive Vice President, Marketing and Sales, Brian J. Kennedy. "The impact of such cost increases necessitates the increases we are taking in our prices in select cities."
 Daily rates in most affected cities have increased $5.00 per day; weekend rates $2.00 per day, and weekly rates $20.00 per week.
 The affected cities are:
 Los Angeles Houston Hobby
 Burbank San Antonio
 Orange County (Calif.) Atlanta
 San Francisco Philadelphia
 San Juan Pittsburgh
 Ontario (Calif.) Chicago O'Hare
 Oakland Chicago Midway
 Palm Springs Orlando
 Las Vegas Miami
 Detroit Ft. Lauderdale
 Cleveland Tampa
 Hartford Charlotte
 Dallas/Ft. Worth New Orleans
 Dallas Love Field Nashville
 Houston International
 As an example, weekly rates in Orlando for a mid-size car such as a Ford Temp have increased to $144.99 from a current level of $124.99 per week. In Los Angeles, weekly rates for a mid-size car have risen to $152.99 from $132.99 per week. Daily mid-week rates for a similar car in Los Angles went up to $44.99 from $39.99 per day. At Dallas/Ft. Worth, weekend daily rates on the same car have increased to $17.99 from $15.99 per day.
 In Florida, mid-week daily rates have risen $2.00 per day in Orlando, Miami, Ft. Lauderdale and Tampa, while weekend daily rates have increased $5.00 per day.
 According to Hertz, increases in other cities are being evaluated on a market-by-market basis.
 For the 1994 model year, Detroit auto makers have instituted a two- cycle fleet pricing plan, whereby fleet costs will be adjusted again for cars invoiced after Feb. 28, 1994. The expectation is that the adjustment for the second cycle will represent a further increase.
 "We are dealing with the unknown in terms of fleet cost increases for the back half of the model year," said Mr. Kennedy. "This is when car rental companies take delivery of fleet for the peak summer season. Further increases in fleet costs next spring coinciding with our summer fleet orders could have significant impact on the industry."
 -0- 9/28/93
 /CONTACT: Joseph M. Russo of The Hertz Corporation, 201-307-2486/


CO: The Hertz Corporation ST: New Jersey IN: LEI SU:

TM -- NY003 -- 6242 09/28/93 09:03 EDT
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Publication:PR Newswire
Date:Sep 28, 1993
Words:446
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