Rental-Car Chains Bask in the Power of Higher Prices

These are blessed days in the land of rental cars. Despite a wave of auto recalls this year that have required some costly shuffling in their fleets, the three main U.S. auto rental companies—Enterprise, Avis Budget Group and Hertz Global Holdings—are enjoying robust pricing thanks to industry consolidation.

“I’m probably more enthusiastic about our business than I’ve ever been,” Ronald Nelson, Avis Budget’s chief executive, said Tuesday on a conference call with analysts. “And one of the reasons is the meaningful change in pricing that we’ve now seen play out over the past six quarters.”