Why You Need To Cancel Your Car Rental Reservation

We need to cancel rental car reservations when we don't need them. It's been a chronic problem in the car industry for years now, with average no-show rates of 9 percent to 14 percent, depending on the channel. But it's a larger issue recently for car rental companies, which are squeezed between higher car acqusition costs and customer demand for more fuel-efficient cars.

The result is that more customers are forced to wait for smaller cars, or face 'upgrades' to SUVs or larger vehicles, or don't get the cars they want. The basic problem is this: Nothing bad happens when you don't cancel your car. With hotels and airlines, no-show travelers stand a good chance of losing some money, either through fare restrictions or guaranteed-room programs. With car rentals, when you no-show, nothing happens. The only apparent loser is the car rental company. In a lower no-show environment, car rental chains can predict real demand better and match car pick-ups to arrivals more effectively. In any case, the issue is becoming painful enough that I predict we'll see some steps on the part of some companies to reward and penalize travelers who do and don't cancel.