Rental giants are earning more per day from smaller fleets. Here's what that means for renters

The two largest US-listed rental groups spent the spring doing the same thing: running fewer or fuller cars and charging more for each day they were rented. For travellers, that is the backdrop to what you pay this autumn — and industry voices are warning that higher fuel prices and airfares could test demand in the second half of the year.

Hertz: more revenue from fewer cars

Hertz Global Holdings reported second-quarter revenue of $2.4 billion on 6 August, up 10% on a year earlier.^[1] Its chief executive, Gil West, said the increase came "despite operating with a 1% smaller fleet", driven by the company's strongest second-quarter revenue per day on record outside the exceptional market of 2022.^[1]

Revenue per day rose 9% and revenue per unit 8%, which Hertz attributed to pricing. Utilisation — the share of the fleet out on rent — was 79%, or 81% excluding cars held back by manufacturer recalls, which the company said were running about 300% higher than a year earlier.^[1] Hertz reported GAAP net income of $64 million, against a loss a year earlier, though on an adjusted basis it recorded a net loss of $47 million.^[1]

The fleet is also unusually new. Hertz said 94% of its US core fleet is now model year 2025 or 2026, the youngest in a dozen years.^[1]

Avis Budget: record utilisation, lower fleet costs

Avis Budget Group, which owns the Avis, Budget and Zipcar brands, reported second-quarter revenue of $3.0 billion and net income of $63 million on 28 July.^[2] Its chief executive, Brian Choi, said the company had moved quickly "to resize fleet, protect utilization and returns" as booking trends shifted.^[2]

Total vehicle utilisation reached 72.6%, up 1.9 points, and 73.2% in the Americas — both second-quarter records, according to the company. Per-unit fleet costs fell 4% to $290 a month, excluding currency effects.^[2] The group also said its autonomous-vehicle partnership with Waymo began operating in Dallas on 1 June.^[2]

What it means at the rental counter

Higher revenue per rental day is, from the renter's side, a higher average price per day — or fewer discounted days. Hertz linked its full-year outlook to "a more balanced industry supply-demand environment", and Avis Budget emphasised resizing its fleet as bookings changed.^[1][2] Neither company published a forecast of consumer rental prices, and neither figure tells you what a particular airport will charge on a particular weekend.

What the results do suggest is that the big operators are prioritising utilisation over volume. In practice, that tends to make last-minute availability tighter at busy times, which is when booking early and comparing total costs — not just the daily rate — matters most.

In the Auto Rental News interview, Healy pointed to inflation that had moved higher again, sharply higher fuel prices and airlines signalling reduced capacity and higher fares — each of which can dampen travel demand.^[3] He also said fleet restraint had preserved pricing power across the industry.^[3]