Customers who fail to pick up their rental car will now face a fee of £40 from Avis Europe in a bid to improve vehicle availability.

The initiative, which is being claimed as an industry first, will be progressively rolled out across the Avis Europe network throughout 2009.

Wolfgang Neumann, group commercial director, said: “We are taking this action to improve vehicle availability for our customers, particularly during peak season, and to use our fleet more cost effectively.

“Charges for cancelling a rental booking are 100% avoidable if customers think ahead and that’s something we believe this measure will encourage them to do.

“It is also a fairer system for customers who diligently collect their cars and simply echoes standard practices across the rest of the travel industry.”

The ‘no show’ fee will bring the car rental firm in line with other travel operators, where it is common practice when booking hotels, cruises, tours and flights.