Budget and Avis (which are the same company, though operated as separate brands) announced that they were banning smoking in all their rental cars in North America.

Effective October 1, 2009, smoking will be off limits. If you do smoke in the car, there will be a $250 cleaning fee. The ban also applies to employees, who typically get to use a car for their personal transportation as a perk of the job.

To be honest, I haven’t noticed many smoky rental cars lately. They’ve been so rare (either because people aren’t smoking in rentals, or the cleaning process is so much better) that I’ve gotten to the point where I haven’t even thought to request a non-smoking car anymore. I can’t even remember the last time I made such a request.

I wouldn’t be surprised to see other companies follow suit. But there will almost assuredly be a company that doesn’t ban smoking, much like hotels, where some chains (e.g., Marriott, Westin) have gone smoke free, but most others have retained a mix of smoking and non-smoking offerings. (Will there be surcharges for renting a car that permits smoking, going forward?)

Renting a car with Hertz? You may soon notice them photographing your car, right before you ride off the lot, and upon return. Hertz has been testing the feature, and is rolling it out more widely.

The photo system is part of a broader plan to use technology to increase efficiency and improve customer service, [Hertz Chairman and CEO] Frissora said. The equipment produces a high-resolution, digital photograph of the rental car, and will compare before and after pictures for differences, Frissora said. Hertz employees currently walk around the vehicle and mark any damage on a form, which the customer signs.

“There will be no discussion because the document would clearly show any incremental damage,” Frissora said. “This keeps customers from being placed in a confrontational position and saves time.”

The Park Ridge, New Jersey-based company’s customers would sign a waiver acknowledging the process and be billed for any damage, Frissora said. Hertz is testing the technology at a location at an airport in the northeastern U.S., he said.

“There will be no discussion” seems a little brusque, but I get the point. Why debate the condition of the car when there’s photographic evidence?

Here’s hoping that the camera won’t lie. E-mailing a copy to the customer — both at the start and the finish of the rental — might be a low-cost way to ensure that the company is being an honest broker.

Dishonest rental locations have commonly tried to milk extra bucks out of customers by billing them for previously-existing damage to the vehicle. (For the paranoid, it’s always been a good idea to take photos of your rental car before you drive it off the lot, though I admit it’s something I’ve never done…)

But interestingly, the company suggests that it’s the one who’s going to come out ahead. Hertz says it’s been letting too many dents and dings slide, for a loss of $170 million, and that the photo system will catch these dings, leading to greater earnings.

Which worries me. Yes, the system SHOULD be win-win, by keeping both the agency and the customer honest. But $170 million is a lot of dings and scratches. Will the system start calling birdpoop dents?

Photos or no photos, don’t let your guard down.

Car rental rates are up in the US. Despite the decline in traveler numbers and the general decline in tourism due to the recession, car rental rates are up across the board. In some regions, there are even vehicle shortages. It’s all because of aggressive fleet management practices by the car rental companies. Supply is down sharper than demand, which translates to higher rates. And I’m seeing those rates.

A few days ago, I started looking for car rental rates out of San Francisco, and even though I knew that rates were going up, I was still taken aback by the prices. $68 a day (plus taxes) for an economy car?! Ouch.

Even Hotwire’s opaque booking options weren’t much lower. $64 was the lowest they found. Priceline wasn’t taking my bids of up to $30 a day (plus taxes/fees).

I just ran the search again right now. None of the majors are showing any availability at all in San Francisco. A smaller vendor, Fox Rent-a-Car, wants $169.20 a day. Budget has cars at Oakland Airport, for over $189. Low supply, meet high prices.

What I’ve booked is at a much lower rate: $42.50/day, including all taxes, for a four-day rental. How?

I went global.

After my initial shock wore off, I checked prices on international sites, including the UK version of Expedia; Zuji, Singapore’s version of Travelocity; Britain’s easycar, and AutoEurope.

In the end, I made a prepaid booking through AutoEurope. I printed a prepaid rental voucher, and I’ll be picking the car up at a location in downtown San Francisco.

Companies like AutoEurope and EasyCar don’t tell you the name of the company you’re renting with up front, much like Hotwire or Priceline. The amount of information you receive varies, until you finalize your purchase. In the case of AutoEurope, I don’t see why they really bother keeping it opaque. They give you the precise pickup address, but not the name of the provider. That’s nothing a little Googling won’t narrow down…

One caveat with booking an domestic vehicle on a site based in another country: Your credit card can be hit with foreign currency fees, even if you’re booking in US dollars. This varies by bank, so be forewarned. AutoEurope has offices in the US, and my card was charged — in USD — from the Portland, Maine office. So no foreign transaction or currency exchange fees.

But still, I’m a tad nervous about this working out. After all, with supply this tight, and my rate this comparatively low, I wouldn’t put it past the rental company to “lose” my reservation. The fact that it’s prepaid may help, but until I’m behind the wheel, I’m not taking anything for granted. Pickup is Wednesday. Wish me luck.

Downgraded: Hertz
Oh, Hertz… you were always a class act among car rental firms. But then you go and buy the remains of my least favorite US rental chain, Advantage Rent a Car, out of bankruptcy. Sure, Hertz gets a low-rent name that can appeal to downmarket customers. But don’t they know that when you lie with dogs, you get fleas?

Upgraded: Air
A bright side of the downturn: The recession means less travel. Which means less pollution. (Duh.) 8% lower carbon emissions by the industry as a whole, in fact.

Upgraded: The Race Card
Without any additional comment… video of Steven Colbert on the Visa Black Card:

A couple of weeks ago, Sean O’Neill of Budget Travel pinged me with some news of more hybrid rental cars hitting the lots: Enterprise was adding 5000 hybrids to its fleet (totaling 7000 nationally), and sister company Alamo/National was bumping their hybrid fleet to 2000 vehicles.

Agencies are reporting more and more hybrids on their lots. But this growth story is being countered by reader reports that they weren’t able to actually rent the hybrid they reserved. Reader Steve reported that his reservation for a hybrid (at Hertz) was substituted for a different class when he showed up at the airports (two separate airports in California).

Then Tyler Colman of Dr. Vino, when renting from Fox Rent A Car at Oakland Airport, was told that hybrids were being cut back at the company “because the transmissions kept dying at 30,000 miles.” Hmm. Seems fishy.

I asked for comment from Fox Rent-a-Car, to see if this was actually a company-wide decision, or if this was just a big talker at the front desk. I still await their response.

Transmissions or not, the deck is stacked against hybrids in rental fleets, given the way rental cars are actually purchased. Sean’s post sums it up well:

Why are there so few hybrid rentals? I posed that question to Neil Abrams, president of the rental car consulting and research firm Abrams Consulting. He explained that rental car companies do not have an advantage with volume pricing buying power. Hybrids are so popular that car dealerships can get bigger margins selling directly to retail customers instead of rental car companies. Meanwhile, automakers are willing to offload lots of standard engine cars and below-market prices to rental car companies— to clear their inventories. So a rental car company can buy (to pick a random example) a Mercury Sable for, say, roughly $12,000. They can rent it for a year. Then they can re-sell it as a used car, and make money off the resale. This is far more profitable to them than buying a hybrid car, which might cost $20,000. They’ll have to charge far higher daily rates to customers to try to recoup the cost. But in an era of under-$2-a-gallon gas, not enough customers may rent the hybrids at the premium prices.

Indeed. And that’s more likely the better explanation for hybrid shortages at California airports. In this climate, it’s frankly surprising that any rental car company is adding hybrids to the fleet, period.

Enterprise’s expansion of the hybrid supply is unlikely an act of altruism. Perhaps they’re making a bet on the future direction of fuel prices. Let’s just hope the transmissions hold up.

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If you’re rented a car or truck from Budget, you may be receiving a check in the mail. But don’t sign it.

There are offers in the mail referencing Budget car rentals, but signing the check will activate your membership in “Everyday Values,” a shopping “club” membership that promises big discounts but costs you hefty membership fees. The program is managed by Trilegiant, a former Cendant subsidiary that specializes in separating people from their money in convenient monthly installments.

But the really sneaky part — and the reason this is relevant to travel — is that your signature on the check gives Trilegiant the right to get the credit card information you used when you rented a vehicle with Budget.

That’s unacceptable. Swiping the card for a rental transaction is intended for use in the rental transaction, and that transaction alone. It’s shameful that Budget has no qualms sharing your card number with a company that uses such fishy customer acquisition tactics.

But this is unfortunately not new. Complaints on the web date back to 2005, and may be even older, based on Trilegiant’s longstanding history of shady offers. Budget and Trilegiant were once under the same corporate umbrella (Cendant). But while they’re no longer corporate siblings, their partnership lives on.

Inquiries to Budget went unanswered.

Full scans of the letter I received after the jump…

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