Air Travelers Inconvenienced, but Rental Cars, Security Firms Profit

Passengers may not appreciate the long airport security lines caused by TSA staffing shortages, but there have been some benefits for investors in rental car and security companies.

Hertz added that the spike in search traffic signals travelers are considering alternative ways, or backup plans, to reach their destinations. (Photo: Hertz Facebook)

That may prove to be short-lived, Janet H. Cho and Mackenzie Tatananni reported for Barron’s Daily.

Shares of Hertz Global rose more than 9% at one point, marking their largest percentage increase since Dec. 22. The rental car company said searches on its website have surged 15% over the past week. It is offering 25% discounts on one-way and last-minute rentals.

Hertz added that the spike in search traffic signals travelers are considering alternative ways, or backup plans, to reach their destinations.

One in three customers is currently renting cars specifically for road trips and driving vacations, it said. Rival Avis Budget Group’s shares also rose.

Clear Secure, whose CLEAR+ platform uses biometrics such as eyes, facial recognition, or fingerprints to verify identities, allows passengers to bypass traditional ID checkpoints at dozens of airports.

The stock has surged 52% and more than doubled over the past 12 months.

As a private company, Clear is shielded from TSA staffing shortages that have contributed to hours-long wait times at airports across the country. Clear recently renewed its partnership with American Express and expects first-quarter bookings growth of 19.7% to 22.1%.