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J.D. Power and Associates Reports: Problems with Rental Car Experience on the Rise

25 May 2000

J.D. Power and Associates Reports: Problems with Rental Car Experience on the Rise
        Enterprise Tops Satisfaction Ranking, Followed Closely by Avis

    AGOURA HILLS, Calif., May 23 More than 30 percent of those
who rented a car at or near an airport indicated a problem with their
experience, according to the J.D. Power and Associates 2000 Domestic Airport
Rental Car Customer Satisfaction Study(SM) released today.  This represents an
increase of 15 percent in reported problems over 1999 study results.
    The most common problems reported to rental car companies deal with
billing, the pick-up process and mechanical difficulties.  Failure to correct
a reported problem causes a significant 23 percent decline in overall
satisfaction.  The study results indicate that only 43 percent of problems are
actually reported to rental car companies, and of these problems, 62 percent
are resolved.
    Enterprise leads the industry in resolving customer complaints
(81 percent) and also ranks highest in overall customer satisfaction with
rentals at or near an airport.  In recent years, Enterprise -- a dominant
player in the rental car replacement and personal-use segments -- has expanded
into the airport segment.  Avis ranks a close second in overall customer
satisfaction, with National and Hertz finishing above industry average.
    "Both Enterprise and Avis demonstrated solid customer satisfaction
performance in the study," said Michael Taylor, director of travel services at
J.D. Power and Associates.  "Enterprise's lead is due to its narrow advantage
in the pick-up process and strong showing in the rental car pricing factor,
which put it in the forefront."
    According to respondents, the rental car pick-up process continues to be
the single most important factor contributing to overall satisfaction,
followed by the return process, rental car rates and value, the condition of
the rental car and the reservation process.
    The at- or near-airport rental car segment continues to be dominated by
the leisure traveler -- 64 percent of rentals are for leisure and 35 percent
are for business purposes.  However, the most critical issues to customer
satisfaction in either case, especially when associated with scheduled air
travel, are speed, ease and convenience.
    The study also shows that satisfaction with the overall rental car
experience and loyalty to a rental car company drops significantly when
customers must wait 20 minutes or more at any one point in the process.
Customers, on average, wait 10 minutes to be picked up by a shuttle bus
enroute to the rental car counter, 13 minutes at the counter, six minutes to
return a car and seven minutes for a shuttle bus back to the airport.
    "Speed and convenience are the key elements required to satisfy customers
choosing a rental car company," Taylor said.  "With the growing demand for
more immediate services, rental car companies that provide the highest levels
of customer satisfaction in these areas are better aligned to differentiate
themselves from the competition and gain market share.  Our study shows that
consumers will switch rental car companies if they are forced to wait too
long."
    Respondents to the survey evaluated their most recent experience with
renting a car from a location at or near an airport.  Eight major rental car
companies were included in the study -- Alamo, Avis, Budget, Dollar,
Enterprise, Hertz, National and Thrifty.  The study, which is based on 3,068
evaluations received from a random national sample of rental car customers,
includes rental cars picked up or returned to locations at or near airports.

    Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a
global marketing information services firm operating in key business sectors
including market research, forecasting and customer satisfaction.  The firm's
quality and satisfaction measurements are based on actual customer responses
from millions of consumers annually.  J.D. Power and Associates can be
accessed through the Internet at http://www.jdpower.com.  Media e-mail contact:
peter.dresch@jdpa.com.  This press release is provided for editorial use only.
No advertising or other promotional use can be made of the information in this
release or J.D. Power and Associates survey results without the express prior
written consent of J.D. Power and Associates.

                            J.D. POWER and ASSOCIATES
                         2000 DOMESTIC AIRPORT RENTAL CAR
                         CUSTOMER SATISFACTION STUDY(SM)

                       Factors Driving Overall Satisfaction
                     (% Contribution To Overall Satisfaction)

                         Rental Car Pick-Up           35%
                         Rental Car Return            22%
                         Rental Car Rates/Value       21%
                         Rental Car Received          15%
                         Reservation Process           7%

    Note:Due to low response, the Shuttle Bus and Company's Reputation
          factors are excluded from the Index.


                        Overall Satisfaction Index Scores

                         Enterprise                   109
                         Avis                         108
                         National                     104
                         Hertz                        103
                         Industry Average             100

    Finishing below industry average, in alphabetical order, are: Alamo,
    Budget, Dollar, Thrifty