Hertz Severs Ties with Ryanair

car hertz in europeEurope’s most popular low cost airline Ryanair and American car rental giant Hertz have severed their ties over disputes on third-party airline ticket booking.

Early in July 2015, Hertz has announced that it is cutting its partnership with Ryanair. The car rental company that has a strong presence in the European market cites Ryanair’s indirect ticket sales through companies offering global distribution systems (GDS) as the reason for their withdrawal. Hertz alleges the airline of violating their exclusive contract as the GDS’ selling of Ryanair tickets allows for its ticketholders to hire cars from rival rental companies. Previously, Ryanair tickets were exclusively sold at their own website which offers Hertz as its sole car rental partner. The contract between the two companies was supposed to take effect until the year 2020.

Hertz says they had a long and thorough discussion with Ryanair to fix the dispute before coming up with the decision to finally terminate the partnership. The car company also said that they are in the process of starting legal proceedings against Ryanair for the breach of contract as well as damages.

Ryanair, on the other hand, says that they are likewise preparing for a legal battle with Hertz. The budget airline company maintains that they have not breached any part of their exclusive contract with Hertz over the indirect ticket sales. The chief executive of Ryanair, Michael O’Leary, insists that Hertz had been duly informed of and had shown support for Ryanair’s partnership with GDS companies which started in April 2014.

Prior bookings with Hertz via Ryanair are still going to be honoured despite severed contracts between the two companies.

In August, Ryanair announced its partnership with fellow Irish-based company CarTrawler as a replacement for Hertz.

Unlike Hertz that offers cars exclusively from its own fleet, CarTrawler is a brokerage company. Through CarTrawler, Ryanair’s website users can check different car hire prices from different local companies and pick the ones with the best prices. Car Trawler has affiliations with up to 1,500 car hire companies and has locations in more than 30,000 cities and airports around the globe.

Through the partnership with Ryanair, guests can directly access CarTrawler’s price comparisons and find the cheapest rentals at their destinations all through the Ryanair website. The CarTrawler addition on the Ryanair website is expected to go live before the second week of September.

In a statement, Chief Executive O’Leary said that partnering with a car rental broker was a better option than partnering with just one rental company as the volume of Ryanair’s passengers cannot possibly be handled by one car hire company alone. Before choosing CarTrawler, the Irish airline company said they had to go through bids from 16 car rental companies to replace Hertz before finalizing their decision.

Meanwhile, Ryanair is gunning for the launch of its new travel website that offers price comparisons for flights, hotels, and restaurant reservations slated for October 2015. The airline is also preparing for massive price cuts on flights for the coming winter months.

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