The Avis Budget group has warned that it is likely to raise prices again next year.

The news follows on from confirmation earlier this week that fleets that hire short-term rental vehicles from the group will also be charged for no-shows from early next year.

The decision means corporate customers will be charged £40 if a vehicle is reserved but the driver does not show up or cancel the booking at least 24 hours in advance.

The group is currently re-writing contracts to include the new clause, which will come into effect as soon as changes have been made to its online booking system.

A spokesman confirmed this would happen before April 2010.

Currently 5% of corporate bookings result in the renter not appearing.

The Group said there has been a “huge change in behaviour” since it introduced a no-show charge to non-corporate renters earlier this year.

It said as much as 10% of its fleet was left idle because of no shows by private renters – this has now been “significantly reduced” said the spokesman.

"It is a long-overdue change."

Now in an additional blow to its corporate customers, Avis Budget has warned that while it has enjoyed a “successful summer”, which resulted in a “significant improvement” in revenue and much better fleet utilisations, it is likely to raise rental prices again.

It said in a statement to shareholders yesterday that its overall rate per day has remained ahead of 2008, albeit at a lower level than the summer.

However, it confirmed it will still press ahead with more price increases.

“We continue to seek opportunities to achieve further price increases and have increased rates for non-contracted business for early 2010, while we continue to negotiate with contracted customers to implement rises,” it warned.

“We remain cautious on both consumer and corporate spending, given the current economic environment.

"Visibility remains limited, particularly given the seasonal rotation of the business back towards corporate and insurance/replacement customers, who tend to book later.

“Against this backdrop we will continue to adapt our business model; maximising opportunities for price increases, tightly controlling fleet to achieve excellent utilisation, as well as keeping a very tight control over costs and working capital.”