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1967 my associate and I took over a bankrupt car rental enterprise and had 3 rental stations, Miami, 5th Street aboard South Beach and the third in Ft. Lauderdale. At the time Yellow Rent A Car, owned by Yellow Cab of Miami, with rental stations in Miami and Ft. Lauderdale was offering a sub-compact car with unlimited free mileage at $45 a week. They were the 1st and merely car rental company with free mileage yet with a one week minimum rental requirement.
I can not tell you what annual they first offered free mileage but I can suspect why. They were only in South Florida, they were only dealing with the leisure market and Disney World 200 miles northwardly was not open. Renters did not use a lot of miles. The competitive rate for a sub-compact car back in the 1960s was $5 per day, $25 per week [5 times the daily rental] and 5 cents per mile. With a one week minimum rental at $25 and with their weekly rate of $45 they would have the inconsistency,[link widoczny dla zalogowanych], or $20, to cover the spend of the miles. At 5 cents a mile the consumer could use up to 400 miles for the week and the rental would be a rinse. I base out afterward that this was a winner for Yellow Rent A Car.
To my wisdom Yellow Rent A Car was the granddaddy of free mileage. Their caveat was a one week minimum. My partner and I, owners of Capital Rent A Car took it one tread beyond. We were the first to offer unlimited free mileage one day or extra. One week minimum rental did not apply. It couldn’t obtain any better than that and I ambition narrate you how it evolved.
Our affair was generated by advertising in local passenger magazines. We too paid a commission because referrals from hotel and motel employers, hostel doorman and taxi drivers. We were equitable favor the additional 20 apt 30 local car rental companies that we competed with. We needed one edge and the motif of some sort of free mileage agenda intrigued both of us.
Our business wconsist in ... tourists and their average rental was 6 or 7 days. Looking at our completed rental agreements the mean value of miles pedaled in a week was almost 250. If we offered a daily rate with some free miles would that fly? We thought so and we could have offered 50 free miles and that would have covered the average renter’s mileage absences. But the rate that we eventually settled on permitted us to offer more miles. More than what the average renter would use and would be discerned as a authentic sale. The incipient free mileage offer included in the daily rate was 75 miles.
We were phasing out our Volkswagens, a sub-compact motorcar, with a rate of $4 per daytime, 4 cents per mile. Our compact motorcar,[link widoczny dla zalogowanych], a Dodge Dart which would become our guide automobile, had a rate of $6 per daytime, $30 per week and 6 cents per mile. We arrived by a everyday rate of $8.50 which contained 75 free miles. Typically the weekly rate was 5 periods the annual rate and in this example 5 periods $6 the daily rate equaled $30 and of lesson the mileage. With the free miles we resolved that we would not offer a weekly rate. The renter paid along the day regardless if the rental was an day, 7 days or however.
Our business took off and why wouldn’t it. We were advertising in the local tourist magazines “free mileage.” At $8.50 per day it was a bargain and I can only guess the thoughts that our callers had. The more $2.50 per day over the $6 per day rental dictate was a bargain. They got 75 free miles so they wouldn’t must worry about a mileage charge. Or maybe they thought $8.50 a day is cheaper than $49 a week, the recently increased rate from Yellow. Within 6 months we accomplished that no one drove anywhere approach the crash even mileage figure. So we did the next best entity. We offered unlimited free mileage. The year was 1969.
Soon afterward we became conscious of CATM. CATM namely an acronym for Consolidated Air Tour Manual. A announcement put attach by the airlines serving Florida. It was a compilation of rates from hotels, car rental companies, attractions and other tourist patronize companies including excursion operators. Tour workers offered “packag