Hertz Car Rental filed for bankruptcy on May 22, the latest and arguably highest-profile victim of the economic downturn brought on by the COVID-19 pandemic. A major player in the car rental industry since it began in 1923, Hertz is a dominant player with over 10,000 corporate and franchise locations internationally. Naturally, its bankruptcy sent shock waves through the industry. But what does it mean to you as a traveler?
The short answer: Not a thing. While Hertz has declared bankruptcy, it is not going out of business. The company will continue operations while restructuring its debts and, hopefully, emerge financially healthier.
What Happens to Your Current Hertz Reservation
Do you currently have a reservation with Hertz? You don't have to change anything. There will be no impact to existing Hertz reservations, and locations will continue to operate and service customers. So breathe easy. Hertz (and Dollar and Thrifty) will service your reservation as they normally would.
"All of Hertz's businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, are open and serving customers. All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual. Customers can count on the same high level of service and reliability, including new initiatives such as "Hertz Gold Standard Clean" sanitization protocols to provide additional safety in response to the COVID-19 pandemic," according to Hertz's recent statement.
Should You Make a Future Reservation with Hertz?
We would not hesitate to recommend Hertz, Dollar, or Thrifty for your rental needs.
Hertz has filed a Chapter 11 reorganization, which gives it additional leeway to negotiate with creditors to come to a plan for moving forward. There are many examples of household-name companies that filed for bankruptcy and then came back, including Apple, Chrysler, General Motors, Texaco, Marvel, Hostess, Converse, Six Flags, Delta Air Lines, American Airlines, the Chicago Cubs and many more.
Hertz currently has over $1 billion in cash, which lets it continue to pay employees and meet other expenses while it works through the process. While liquidation is always possible at some point in the future, Hertz is one of the strongest brands in the world, and the company expects to have sufficient funding to operate its brands in the long term.
Hertz said the bankruptcy process will give it "a more robust financial structure that best positions the company for the future as it navigates what could be a prolonged travel and overall global economic recovery."
If, at some time in the future, Hertz were not able to honor a reservation, you would always have the option of switching to an alternate company (although prices may be different at that time), and any prepaid reservations made through AutoSlash would, of course, be refunded. In addition, you always have the option of booking a backup reservation with a different company through AutoSlash if you have any concerns.
And remember, the very best way to get the lowest possible price on a car rental is to ask AutoSlash to track your reservation. We'll send you an alert if there is a price drop so you can rebook at the lower rate.
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