Posted November 05, 2019 09:04:04Car rental companies are struggling to find new ways to make money after losing customers in the wake of Hurricane Harvey.
And the same is happening in the car rental industry.
In 2016, CarRentalVacations said it lost $1.2 billion on rental business, the third-largest loss among all rental businesses in the U.S. Since then, the company’s business has gone down in popularity.
It said it had more than 2,500 customers in 2017 and had more then 9,000 people in 2018.
“Car rental was a very popular service for us, but now, with Harvey, it’s a little bit more of a challenge,” said Matt Boudreau, CEO of CarRentalsVacation, a company that specializes in car rentals.
Bouds said the company had about 50 car rentals booked in 2017.
CarRrentalsVax had about 100 car rentals in 2017, but only 1,600 car rentals that year, he said.
CarVacionsVacitions, another company that provides car rentals, said it has had some losses but has a solid business model.
The company has 2,700 car rentals scheduled for 2019.
Burt, the CEO, said CarRentsVax is looking to expand and said it’s considering building out its business.
Car rentals in Lubbock, Texas.
Car rentals in Dallas-Fort Worth, Texas, were down last year.
It has about 2,000 car rentals planned in 2019, he added.
Boudreau said CarVacsVacison, a car rental company based in Dallas, is the biggest loss among the rental companies.
The Dallas-based company lost more than $3 billion in 2018, according to its financial statements.
It reported its losses for the year, and it expects its losses to grow for the next 12 months.
Burt said the losses have been due to the impact of Hurricane Irma on car rental business.
That was a tough blow, but the company is working to make up for that, Boudres said.
CarVacion said the worst-hit areas of the country are in New Orleans and Houston, where more than 60 percent of the cars rental companies in the region are located.
CarRental Vacations and CarRights said they are working with their rental partners to rebuild, but it is difficult to know how much recovery is possible because it depends on what parts of the state have reopened.
Car Rental Vacation said it expects to be back to full service in about a month.
But there is no guarantee that will happen.
“Our goal is to get back to business as usual and return to profitability in 2019,” said Michael Gifford, vice president of marketing and operations for CarRidesVacacion.