Cost Savings Achieved Through Successful Car Rental Negotiation Strategies

January 3, 2008

According to respondents to Runzheimer’s 2007 Car Rental Negotiation Survey, car rental costs represent approximately 9% 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% to 25% 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,” says Phyllis Schumann, Product Manager of Travel Management Services at Runzheimer International. To reinforce this statement, respondents to the survey reported an average savings in excess of a half of a million dollars annually as a result of their negotiations.

About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to total employee mobility, Runzheimer is the global leader in business vehicle reimbursement programs, travel management consulting, employee relocation and compensation, virtual offices, and corporate aircraft.

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For more information, contact Jennifer Ruppel at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262)971-2277, jmr@runzheimer.com.