Business travel is making a comeback and could limit the already tight supply of rental cars when it finally recovers. hertz Chief Executive Stephen Scherr told CNBC’s Jim Cramer on Thursday.
“Corporate business is trending up, make no mistake about it. I’m confident that will start to come back, and I think the inbound visitor from outside the US will start coming back when some of the limitations are fully relaxed.” of Covid are in fact in place,” Scherr said in an interview on “bad money.”
“When that happens, I think there’s more demand here than what we’re experiencing right now, and right now, this is a supply and demand issue, which is demand is outpacing the number of fleets that the industry, not less Hertz, it has,” he added.
Hertz reported better-than-expected earnings and revenue in its latest quarter, according to StreetAccount.
The rental car company said on its quarterly earnings call that it is “experiencing the impact of new vehicle supply restrictions as well as certain inflationary cost pressures,” and that problems getting enough supply to meet demand could last until 2023.
However, the uptick in business travel is still in its early stages compared to leisure travel, Scherr said.
“If you just break down demand, leisure travelers are down 90% from 2019. Business or corporate travel is down just 63%. And… non-US travelers back,” he said. .
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