J.D. Power and Associates Reports: The Rental Car Industry Makes Significant Strides in Improving Customer Satisfaction

Enterprise Ranks Highest in Satisfying Rental Car Customers for a Third Consecutive Year

WESTLAKE VILLAGE, Calif., Nov. 14 -- Travelers renting cars at airport locations record significantly higher customer satisfaction levels with rental car companies than they did in 2005, according to the J.D. Power and Associates 2006 Rental Car Satisfaction Study(SM) released today.

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Now in its 11th year, the study finds that customer satisfaction with rental car companies has improved 23 index points on a 1,000-point scale -- representing a 3 percent improvement from 2005. Improvements are recorded in all six factors used to determine overall satisfaction: costs and fees, pick-up process, rental car, return process, reservation process and shuttle bus/van. Furthermore, all eight companies included in the rankings record year-over-year improvements.

"This has been a good year for the travel industry in terms of customer satisfaction, as each travel-related segment we measure has experienced improvements, including airlines, airports, hotels and now rental cars," said Jim Gaz, senior director of travel and entertainment at J.D. Power and Associates. "However, the rental car industry may face challenges in the future as domestic manufacturers consider pulling back on fleet sales to focus on their more profitable retail sales. This has the potential of leading to higher rental car rates and an aging fleet of cars."

Enterprise ranks highest in customer satisfaction among rental car companies for a third consecutive year, receiving an overall index score of 789 -- a 21-point improvement from 2005. Enterprise performs particularly well in five of the six factors: costs and fees, pick-up process, return process, reservation process and shuttle bus/van. Enterprise is followed in the rankings by Hertz and National, respectively.

The study finds that only 29 percent of customers waited to pick up their rental car -- a 15 percentage-point improvement from 2005. However, the average time it takes to pick up the rental car is 21.5 minutes this year. This is an area the industry needs to address since overall satisfaction drops below the industry average with any wait time that exceeds five minutes.

"Once arriving at the airport, travelers are already in an impatient mood," said Gaz. "Having to wait more than what they feel is a reasonable amount of time to receive the rental car is not a good way to start their rental car experience. Considering that more than 21 percent of customers choose a rental car company based on a previous experience, the pick-up process plays a critical role in impacting customer satisfaction."

  The study also finds the following key rental customer patterns:

  *  Customers are increasingly renting full-size and sport utility
     vehicles.  While the vast majority of vehicles rented are mid-size
     cars (42%) or compact cars (14%), the rental share of full-size cars
     has increased 5 percentage points to 12 percent, while sport utility
     vehicles has increased 3 percentage points to 11 percent.

  *  The Internet continues as the method of choice when making
     reservations.  Overall, 69 percent of customers reserve a vehicle
     online -- 42 percent at the rental car company Web site, 21 percent
     at an independent travel Web site, and 6 percent through a corporate
     self-booking site.

  Overall Satisfaction Index
  (Based on a 1,000-point scale)

  Enterprise                    789
  Hertz                         780
  National                      775
  Industry Average              767
  Avis                          766
  Alamo                         762
  Budget                        754
  Thrifty                       752
  Dollar                        746

  Included in the study but not ranked due to small sample size are:
  Advantage Rent-A-Car and Payless.

The 2006 Rental Car Satisfaction Study is based on responses from 4,133 business and leisure travelers who rented a vehicle at an airport location between January and October 2006.