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Car Rental Experience That "Hurts"

Posted by FredReichheld on Mar 20, 2006 2:54:34 PM

I usually rent from Enterprise, especially on personal trips, but on our recent Florida family vacation I used Hertz.  Big mistake!  Sure, I started with a nice $75 discount coupon compliments of my AAA membership, but when a traffic jam made us almost an hour late returning to the airport, we were mugged with bad-profit policies.

 

 

First, for the one extra hour we used the car, Hertz charged us 50% of the cost of an additional day. Wouldn't 1/24th make more sense?  Then it added on a charge of almost $75 because the tank on the Toyota sedan was only half full. The Hertz employee who checked us in was obviously embarrassed by these unreasonable fees when he handed us the bill--he warned us that the next time we rented from Hertz we should be sure to buy the protection policy that covers gasoline refills.  I thought to myself that selling "protection" sounded more appropriate to organized crime than a car-rental business.

 

 

So what started out as a $75 savings was more than wiped out by overpriced gas refills and abusive late fees.  These bad-profit polices not only managed to embarrass the front-line employee who had to give me the bad news, they managed to make a stressful experience (rushing to catch our plane) even more painful.

 

 

Sure, the accountants at Hertz must be pleased with the fee revenue they booked at my expense.  And after all, don't most of the other rental companies utilize similar dirty tricks in their pricing and fees? But I know one thing: the next time I rent a car for a family vacation, I won't be going back to Hertz.  Maybe there are a lot of people just like me--which would explain why Enterprise continues to gain share in the car rental business.  And maybe there are a lot of employees who are embarrassed to implement fees and charges they consider unfair and abusive. That may be why companies addicted to bad profits find it so hard to attract and retain talent.

 

 

Oh, and by the way.  I don't feel particularly good about AAA either, given that it was that organization's coupon that enticed me into this bad experience in the first place.  I probably will not bother opening many more of the envelopes full of "bargains" AAA sends to our house.  Bad profits hurt customers, employees, partners, and investors.  That's why they are BAD!!!



Mar 21, 2006 12:54 PM Guest Jeffrey Eisenberg  says:

Years ago I only rented only from Avis or Hertz beacuse their service was worth the premium I paid. I've had so many bad experiences that I now choose my car rentals by price alone. That's pretty sad because by nature I'm a relational customer, not a bargain hunter.

 

Mar 21, 2006 11:17 PM Guest Gregory Kohs  says:

Fred, this is almost too uncanny for belief.  I wrote in MY blog, five days before you wrote this piece -- discussing your notion of "bad profits" and my personal experience with National Car Rental recently.

 

Those rip-off artists tried to bill me an EXTRA $300 when I returned the vehicle seven hours EARLY!

 

Click on my name hyperlink to read my post in "Inside Market Research".  I hope you enjoy.

 

Mar 23, 2006 12:32 PM Guest Brad Miller  says:

Dollar has the same policy.  I was running late to return a car to the airport and didn't have time to refill the tank.  It was only 1/3 full and so Dollar charge me almost $6/gal ( gas at the pump was about $2.25.)  That was over $80.

 

A few years ago the gas premium was 30%-50% now it is over a 2.5x markup.  That's highway robbery, but "Vito" warned me, "...that is was in my best interest to take the gas option."  Even though they get the free gas at the end of the trip you only pay market rates for the gas.

 

But when you are stuck you must pay.  That is the American way.  Look at how the gas stations jacked up the prices after Katrina without receiving a load of gas.

 

Mar 25, 2006 1:07 PM Guest Leo Romero  says:

I've used several rental-car companies, and haven't had a truly bad experience with any of them. But none of them have impressed me either. With one exeception: Enterprise. Every time I've rented there, I've dealt with people who are courteous, friendly, and smart. Their cars are no big deal, but that's no big deal to me either. It's the service that matters, and in that they excel.

 

Apr 3, 2006 5:30 PM Guest Laurent Flores  says:

Fred - what you share here is indeed a big rip off that we all experienced one day or another, it seems that leading rental car companies are well known for this BAD PROFIT behvaior, the question is really when will the stop treating us as "deep stupid wallets"...Lets' keep pushing all together to change those bad profits strategies...It seems that the revolution is underway, or at least things start changing...

 

May 29, 2006 11:48 AM Guest David Bryce  says:

A few months ago I was in St. Louis on business.  A car had already been booked for me at Dollar.  When the taxi dropped me off at Dollar's office, I got a lesson in poor service.  The facility was filthy.  I got in the rather long line and saw that only one agent was serving customers.  (Several employees were huddled behind the counter, though, cracking jokes.)  At one point, an attractive lady passed by on the sidewalk right in front of the office.  One of the male employees ran from behind the counter to the large window there to stare, and even uttered a "Damn!"  Finally, I got my turn at the counter.  I was given a set of keys and little else.  I had to find the car in the parking lot.  And when I did--Wow!  It was a bright orange Mustang.  =)

 

I think I know at least part of the problem.  As I was leaving Dollar's office that day, I had noticed something.  There was a bulletin board labelled "Employee of the Month".  It was completely empty.  To me that was telling.  I'm sure there's a lack of leadership at that office.  I would bet the employees are neglected.  (In my experience, great service often depends on the "discretionary" effort of the person interacting with the customer.      Do they really care?  Well, you can't expect employees to show customers they care if the company hasn't demonstrated that it cares about it's employees.)  And I'm fairly certain there have never been any internal discussions there about turning customers into "promoters".

 

Is it any wonder that I went back to Enterprise last week when I was in San Diego?  No line.  After the required paperwork, a friendly agent came from behind the counter.  She introduced herself, shook my hand, and gave me a business card.  I was offered water.  Then this employee walked me to the parking lot.  I was shown several cars.  After making my selection, we did the "walk around".  Then she explained the contract to me in detail, gave me directions to my hotel, and wrote down a phone number to call if I had any problems.

 

Good service is like a work of art.  I admire companies like Enterprise who deliver it.  And poor service is an "injustice".  It's wrong for customers to pay good money for a sub-par product or service that's delivered in a manner that says, "We say we do, but we don't REALLY care about you."  Bad profits, indeed.

 

Thanks for the book, Fred.  Bring on the revolution!