– According to respondents to Runzheimer’s 2007 Car Rental Negotiation Survey
, car rental costs represent approximately 9 percent of total travel and entertainment costs, with the largest group of respondents spending between $125,000-$500,000, and renting an average of 21,158 cars annually. Eighty-three percent of respondent organizations negotiate with car rental companies on a nationwide basis, with most discounts ranging from 16 percent to 25 percent below the published rates.
Nearly three-fourths of respondents report having contracts with two car rental companies and most often receive collision and loss damage waivers (CDW/LDW) at discounted rates or no charge. Concessions such as unlimited mileage, upgrades, and premium club memberships are a negotiation tactic that has proven successful.
“It is important to realize that although car rental may account for a relatively small percentage of total T&E cost, significant cost savings are attainable through negotiations,” said Phyllis Schumann, product manager of Travel Management Services at Runzheimer International.
Respondents to the survey reported an average savings in excess of a half of a million dollars annually as a result of their negotiations.