With the effects of the recession missing no segment of the economy, the rental car industry has had its share of rough times; now there is an apparent glimmer of hope on the horizon. Hertz Global Holdings Inc. Chairman Mark Frissora announced a better than expected earnings outlook after postponing guidance earlier this year. Chairman Frissora interprets the increase in summer reservations as a sign that people are opting for local vacations rather than international travel.

For the past ten weeks, reservations are up in both the U.S. and Europe. The increase is being seen in popular travel destinations such as Florida, Southern California and the East Coast. Hertz announced that it will begin adding vehicles to its pared-down fleet to meet the demand. With 20 percent of new car sales attributed to fleet sales, the announcement by Hertz can only be good news for an auto industry in shambles.

As a result of the announcement by Hertz that their expected earnings would be between $11.5 and $1.75 billion, stocks also rose for other rental firms including Avis, Dollar and Thrifty. Stocks of all major rental companies rose to a 52-week high. With the improved outlook for its revenue, Hertz plans to update guidance predictions on a quarterly basis as it has in the past.