Business travel is rebounding and might constrain currently tight products of rental automobiles when it lastly recuperates, Hertz president Stephen Scherr informed CNBC’s Jim Cramer on Thursday.
“Corporate business is trending upwards, make no mistake about it. I’m confident that that starts to come back, and I think the in-bound visitor from outside the U.S. will start to come back when full relaxation of some of the Covid limitations are in fact in place,” Scherr stated in an interview on “Mad Money.”
“When that happens, I think there’s more demand here then what we’re experiencing right now, and right now, this is a demand-supply issue, which is demand is outstripping the amount of fleet that the industry, no less Hertz, has,” he included.
Hertz reported better-than-expected profits and earnings in its newest quarter, according to StreetAccount.
The rental vehicle business stated in its quarterly profits call that it is “experiencing the impact of constraints on the supply of new vehicles as well as certain inflationary cost pressures,” which problems with acquiring sufficient supply to fulfill need might last into 2023.
However, the rebound of organization travel is still in its early phases compared to leisure travel, Scherr stated.
“If you just decompose demand, leisure traveler 90-some odd percent back relative to 2019. Business or corporate travel only 63% back. And … non-U.S. travelers, so people coming from Europe or Asia into the United States, only 35% back,” he stated.
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