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The battle has become an expensive and probably futile exercise. Giveaways have eaten into profits without boosting the number of people who want to rent cars. Hertz's Olson contends that market shares will end up unchanged. Grumbles Rajiv Tandon, a National vice president: "Nobody's making money out of this."
Ironically, Budget, the originator of the giveaway gimmick, has now decided to end its campaign. Says Budget President Morris Belzberg: "I like to think that American business is made up of entrepreneurs and original thinkers." He adds: "I think it's shameful when a whole industry follows like sheep." Budget is going back to touting prices instead of prizes. Starting this week, it will offer Lincolns for $39.95 a day with unlimited mileage at most major airports, which is less, Budget claims, than its rivals have been charging for compacts. Once again, Hertz, Avis and National may be forced, kicking and screaming, to follow Budget's lead.