Do car renters really prefer a hybrid? Survey says …

by Christopher Elliott on August 14, 2008

Your next rental car may be a hybrid, if a press release issued by Hybrid Rental Car is to be believed. The site claims “a lot more people” are asking to rent one of these more fuel-efficient vehicles.

Hybrid Rental Car seems to make a compelling case, arguing that higher energy costs have pushed the driving public to embrace hybrid vehicles.

With gas still over four dollars a gallon, renting a hybrid over an SUV or other gas guzzler can save customers hundreds of dollars on the cost of a trip. Choosing to rent a Prius or other hybrid car is not budget-friendly, but only eco-friendly and that has also come into vogue.

But there’s virtually no hard evidence that customer demand for hybrids has increased — only that major car rental companies are adding more of these cars to their fleets. For example:

  • Enterprise has the nation’s largest fleet of hybrid cars, with approximately 5,000 vehicles. It offers four hybrid models available nationwide.
  • Hertz is planning to add another 2,400 hybrid cars this year. It has hybrid car rentals at the company’s top 50 airport locations.
  • Avis offers 2,500 hybrids in three classes, available primarily at major airports in California and cities including Portland, Seattle, Chicago, New York, Washington, and Boston.
  • Fox Rent A Car, a Los Angeles-based discount operation, offers hybrids in Phoenix and seven locations in California.

All the new hybrids will help push the nation’s rental pool for the gas-sipping, emissions-cutting gas/electric vehicles to more than 10,000, according to Hybrid Rental Car.

That’s impressive. But other than saying that renting a hybrid is fashionable — which no one would argue with — there is no hard evidence that customer demand for these fuel-saving vehicles is on the rise. And the fact that some major car rental companies are adding hybrids to their fleets in some markets doesn’t mean travelers prefer hybrids.

In fact, based on my conversations with car rental customers, it is the price of the car — not the make or model — that’s the determining factor in a rental. That’s the problem.

You’ll usually (though not always) pay a higher day rate to rent a a hybrid when compared to a similar non-hybrid. The cost can range up to about $24 per day.

And in the end, that’s what may doom the hybrid experiment. Charging more for less is a tough sell, even for the enlightened motorist.

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{ 6 comments… read them below or add one }

Skip August 14, 2008 at 1:58 pm

Chris is right on the money here. Adding $24 a day to a rental cost wipes out any money savings. Gas could rise to back to $4.50 a gallon (like it did here in Oregon, which sports the 7th-highest gas prices in the country) but no one is going to burn through $24 of gas daily–certainly not while driving a hybrid vehicle.

Jen August 14, 2008 at 2:27 pm

I can understand this argument if someone is accustomed to renting a less-costly economy or compact car (which I’m looking at a $10 price difference as I type this). But what about the folks who have always been willing to pay more for larger cars or SUVs? And I know plenty of people who have been willing to pay top dollar for new technologies. I guess what I have trouble understanding is why does it seem (to me, anyway) that people are apprehensive about the hybrid technology? Does it have to do with the size of the car?

Aaron August 14, 2008 at 4:00 pm

I recently rented a Prius and paid the premium to do so. Why? I am considering buying one and wanted to drive one around for a couple of days first.

Dom August 15, 2008 at 7:58 am

I was disappointed to learn that my local Enterprise didn’t have a hybrid I could rent the past three times I’ve rented from them. I’m considering taking my business elsewhere.

Mike August 17, 2008 at 2:27 pm

I did the same as Aaron. I rented the Prius for a couple of trips which involved 250+ miles of driving each time. I didn’t save money, but I did get a good feel for how the car handles in various conditions.

Maria September 23, 2009 at 10:29 pm

Hello Christopher,
Thank you for your post.
We agree that price might play an important factor in the customers’ decision to rent a car. That’s why it is important to teach them the advantage of choosing the hybrid over an other car, not just because of the discount. In our post: http://foxrentacarblog.com/2009/09/fox-goes-green-the-hybrid-as-a-rental-choice/, we inform them about the reason behind offering the hybrid : a green driving!
Thanks again for sharing.

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