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.”
Hertz relocated its corporate headquarters to Florida from New Jersey in 2013. It is building an $85 million corporate campus in Estero, an area between Naples and Fort Myers.