Hertz follows airlines and cuts travel agent commissions for some corporate rentals
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Posted 2:09PM on Thursday 4th April 2002 ( 23 years ago )
NEWARK, N.J. - Blaming a downturn in business after Sept. 11, Hertz Corp. has become the first U.S. car rental agency to eliminate travel agent commissions for government and corporate rentals. <br>
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The world's largest car rental agency eliminated the average 5 percent fee for agents who handle U.S. and Canadian business and government accounts. The last commissions were granted Thursday, Hertz said. <br>
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Industry analysts expected most other car rental agencies to do the same. <br>
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The company that owns the Alamo and National rental agencies said Thursday it would re-evaluate its commission policy. <br>
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Richard Broome, Hertz vice president for corporate affairs, said travel has dropped since the third quarter in 2000, and "we haven't recovered all the way back." Business travel was hit particularly hard, he said. <br>
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Hertz cut less than 10 percent of its staff of 30,000 and reduced its fleet before dropping the commission fees, Broome said. <br>
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The change does not apply to agents' commissions for leisure car rentals or for business rentals with companies that do not have corporate accounts with Hertz. <br>
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The number of accounts affected was not dislosed. <br>
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Most major airlines last month said they would no longer pay per-ticket commissions to travel agents for tickets booked in the United States and <br>
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