US Organizations Save an Average of $320,000 Annually on Car Rental Fees Through Ongoing Negotiations, According to Runzheimer International Study

Cost Saving Opportunities Exist for Companies Using the Runzheimer International Travel Management Network to Negotiate Better Deals

Jun 30, 2010, 15:18 ET from Runzheimer International

WATERFORD, Wis., June 30 /PRNewswire/ -- A new survey released today by Runzheimer International cites that organizations actively pursuing negotiations with car rental companies are reaping measurable savings benefits. The Car Rental Negotiation Survey found that 79% of businesses are proactive in negotiating nationwide agreements with car rental companies and can cite overall savings of up to 30% versus standard car rental rates. Participant organizations averaged savings as a result on average of $320,059.  The full report can be found here:

"Organizations gain negotiation power by using benchmark cost information when setting up travel programs with their suppliers," said Greg Harper, president of Runzheimer International. "The data provided through our proprietary Travel Management Network includes a wealth of information, from city car rental costs to specifics on airfare, hotels, and meals that companies can utilize to directly improve procurement performance."

According to the Runzheimer International Car Negotiation Survey, the most popular concessions received through rental car negotiations include: unlimited mileage (91%), insurance concessions (85%), premium club memberships (79%), and upgrades (74%). Fifty percent (50%) are assured waiver of drop-off charges for one-way rentals and 44% of respondents are assured waiver of add-on charges for one-way rentals. To a lesser degree, some organizations are provided free delivery of vehicles to corporate headquarters or other office locations (41%).

Other Key Survey Findings:

  • Eight-seven percent of organizations report being "very satisfied" or "satisfied" with their car rental negotiations, which is up from 68% in 2007.
  • Seventy-three percent (73%) of organizations handle car rental negotiations in-house, down from 85% in 2007. Twenty-one percent (21%) include their agencies in joint car rental negotiations.  Previously, no respondents delegated this task exclusively to their travel agency; however, six percent (6%) of respondents now delegate to their travel agency.
  • The largest change in average length of car rental contracts is seen in 32% of respondent organizations securing three-year contracts versus only 13% in 2007.
  • A flat fee is still the most common type of car rental rate negotiated as reported by 49% of organizations; 33% use a combination flat rate and discount approach, up from 18% previously.
  • Negotiating with a car rental company that intends to implement "green initiatives" is important to two-thirds (67%) of respondent organizations.

Survey Methodology

A cross-section of organizations from various business classifications, company sizes, and geographic regions participated in the Runzheimer Car Rental Negotiations study. The majority of responses are reported from U.S. locations; therefore, travel costs are uniformly shown in U.S. dollars. All percentages are rounded to the nearest whole number unless otherwise indicated. Runzheimer has published 14 previous editions of this study providing users with trend data covering more than two decades of rapid change and continuous new challenges.

About Travel Management Network

The Runzheimer International Travel Management Network provides the industry's most accurate and objective travel information, including hotels, meals and car rental for 200 domestic, 100 international cities and airfare for over 1,000 city pairs.  The service helps procurement and finance leaders improve negotiation results, reduce audit risk and set policy to manage spending.

About Runzheimer International

Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500 and numerous government agencies. The company is recognized for providing innovative solutions relating to Total Employee Mobility.®  Runzheimer International is the global leader in workforce mobility programs including business vehicle, business travel, logistics, corporate aircraft, employee relocation and compensation, and virtual office.

SOURCE Runzheimer International