Car Rental
The short-term hire of a vehicle from a rental company for use during business travel, typically booked alongside flights and hotel accommodation through the corporate travel program.
Car rental in corporate travel refers to the temporary use of a vehicle hired from a rental company — such as Enterprise, Hertz, Avis, or Budget — for transportation during business trips where ground transportation via taxi, rail travel, or ride-sharing is impractical. Car rental is commonly needed for travel to locations poorly served by public transport, for multi-stop itineraries, or for carrying equipment. Rental costs include the base daily rate, fuel, insurance, additional driver fees, and optional extras such as GPS or child seats. For corporate programs, car rental is typically covered by negotiated corporate discount agreements with preferred rental companies, with costs billed directly to the corporate card or invoiced centrally.
Why it matters
Car rental is a category where policy clarity prevents significant cost leakage and liability issues. Unrestricted car rental choices — selecting premium vehicle classes above policy limits, adding unnecessary insurance products already covered by the corporate policy, or retaining vehicles longer than needed — create material unnecessary cost at scale. Insurance coverage is a particular area of complexity: corporate card insurance, employer-provided travel insurance, and rental company collision damage waivers may overlap significantly, yet travelers routinely purchase redundant insurance coverage at the rental counter without understanding what is already covered. Clear corporate travel policy guidance on approved vehicle categories, insurance requirements, and fuel return obligations prevents the most common car rental cost errors.
How it works in practice
In a managed travel program, car rental is bookable through the online booking tool (OBT) alongside flights and hotels, with preferred supplier rates automatically applied through rate codes loaded into the GDS. Traveler profiles include driver licence details and the corporate rate code for seamless check-in at the rental counter without requiring negotiation. Policy parameters — approved vehicle classes, maximum rental duration, permitted add-ons — are enforced at the point of booking. Rental charges are typically settled directly on the corporate card and appear in the expense management system for review, or invoiced directly by the rental company under a direct billing arrangement. Mileage reimbursement is an alternative cost mechanism applicable when employees use their personal vehicles rather than rental cars.
The takeaway
Car rental is often an afterthought in corporate travel programs — managed less rigorously than air and hotel — yet it represents a consistent source of unnecessary spend from policy non-compliance and redundant insurance purchase. Ensuring car rental is fully integrated into the managed booking channel, with preferred rates, policy controls, and direct billing, brings this category under the same discipline as the rest of the travel program and typically reduces per-rental costs by 15–25% compared to unmanaged ad-hoc bookings.