More car rental firms to rethink loyalty
Having decided that not all frequent flyer programmes offer the same competitive advantages they once did, ANC Rental Corporation is to review its participation in airline loyalty schemes, based on discussions with its travel partners over the next few weeks.
ANC, the parent company of National Car Rental and Alamo Rent-a-Car, will meet with travel partners and commercial accounts before making decisions about its involvement in frequent flyer programmes. The firm's final decision is expected by the end of March 2003.
"It is apparent that the cost of the [frequent flyer] programmes benefits the airlines, and not the customer or the car rental industry, due to the breakage component in unredeemed miles," explained Michael Going, ANC's senior vice president of sales.
Following Hertz The move follows closely on the heels of a similar decision by Hertz, aimed at improving margins. However, the key difference for ANC is that it proposes to fully consult its business partners and customers before taking any action. The firm is to convene its own advisory group to weigh up the effects (on its corporate travel partners) of various proposed plan modifications.