Hertz boosts rental rates

NAPLES — John Tague, the former United Airlines executive recently appointed to lead struggling car-rental giant Hertz, made his first major move by boosting rental-car rates.

Hertz, which has been wrestling with accounting and operational problems, announced over the holidays that it plans to boost retail rental-car rates this month. However, the company didn't disclose any details about how much it planned to raise rates.

“Fleet costs are escalating due to declining residual values and, as a result, we have implemented price increases across our car rental brands in the U.S.,” says Tague, Hertz' CEO and president, in a statement. “The company is pursuing cost reduction opportunities in addition to its previously announced program to cut expenses $100 million annually, while also increasing investment to improve our customers' rental experience, including refreshing the car rental fleet.”