Avis Europe, one of the Continent's major car rental groups, warned its clients saying that its fleet costs were going up.

The car rental firm operates its services at a number of locations all over the world, including in Europe, Asia, the Middle East and Africa.

In all the major markets, except for Spain where sales remained constant, takings multiplied. According to the car rental company, due to euro's strong performance, the firm's trading gets affected. If the car rental company increases its prices, the travellers would be affected very badly from their budget's point of view.

A spokesperson for the car rental firm said, "Overall fleet costs for the full year will be higher. Other costs will continue to be controlled tightly".

Car rental companies are not the only ones making efforts to fight with rising costs. Due to continuously rising fuel prices and tight economic conditions all over the world, many businesses, the tourism industry in particular, are finding it difficult to earn profits.

With high fuel costs have made loss of millions of pounds for the Scottish government in maintaining their fishing fleet, and British Airways (BA) recently said that it would have to bring some of its planes down in order to lessen losses due by the high fuel costs.

Avis, operating in over 70 nations all over the world, is the owner of two of the most accepted brands in car hire market.