An update. Hertz is still ripping off it's #1 Club Gold members. My husband tried to book a one-day rental in Valencia using his #1 Club. He was quoted 200 euros. The Spanish agent said that was way too high and requoted for 45 euros, then upgraded him to an E-class Mercedes.

When booking a couple of one-week rentals this summer, I found ridiculously high rates online using our #1 Club number. When I resubmitted without the number and with AAA discount it was very reasonable. We always give the #1 Club number at the desk for upgrades, but DO NOT use it when reserving.