Storms boost rental-car demand

• By CHAD CALDER AND CHRIS GAUTREAU
• Advocate business writers
• Published: Sep 23, 2008 - Page: 1D - UPDATED: 12:05 a.m.

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Hurricanes Gustav and Ike have car-rental companies boosting their fleets as they struggle to meet demand.

“I’ve got more business than I can handle,” National Car Rental Manager Gary Cornelison said, noting that even business on the weekend has doubled.

Cornelison said he’s got about 50 extra vehicles on top of the usual 150.

National does substantial contract business with insurance companies, so the surge in his business comes primarily from recovery workers and workers that businesses have flown in to help get them back on their feet.

National doesn’t keep a waiting list, and on peak days like Tuesday and Wednesday has had to turn away some customers.

Hertz Corp. doubled its fleet after Gustav, though the company will not say how many cars that includes, only that it is in “the high hundreds,” said Paula Rivera, the company’s public affairs manager.

“As of right now there is not a waiting list, but that’s because we took the steps to increase our fleet,” she said. “Over the coming weeks, we have quite a few more cars headed down to the area.”

“I believe we are currently at the peak of demand and that will continue for the next week, week-and-a-half,” she said, “then we’ll see rental volume go back down to regular levels.”

Jason Felsman, manager of Enterprise Rent-A-Car’s Baton Rouge market, said customers may have to be patient, but the company has been ramping up its supply of cars over the past two weeks, adding 400-500 vehicles to its inventory.

“We empathize with every individual’s situation. We have a lot of employees going through the same situation as well,” Felsman said. “Right now, it’s just a waiting game for transports to show up.”

Hertz’s business is a mix of insurance replacements and disaster relief, Rivera said.

Rivera said rates were frozen immediately after the storm, but now Hertz and National said rates for individual customers are a little higher than they normally would be. Much of the business, however, is on contract rates.

Rivera said there have been instances of rental companies without cars checking with one another to find vehicles for customers.