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Hertz Eliminates Agent Commissions for Business and Corporate Rentals

April 9, 2002

Hertz Corp. became the first U.S. car rental agency to eliminate travel agent commissions for government and corporate rentals. About $20 million of the approximately $60 million could be cut from Hertz commissions paid for agents who handle business and government accounts in the U.S. and Canada. Industry analysts said Hertz’s move could prompt other car rental agencies to follow suit. Hertz, which owns the Alamo and National car rental agencies, said it will re-evaluate its commission policy. Richard Broome, Hertz vice president for corporate affairs, said that travel has declined since late 2000. He said that Hertz cut less than 10 percent of its staff of 30,000 and reduced its fleet before eliminating the commission payments.
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