August 2006

In this issue...

OSSN Home
Destination: Argentina
by Bill Eagle
President's Message
by Gary Fee
What You are Really Selling
Managing Your Travel Business
by John Hawkes
On the Move
by Penney Rudicil
Do It Now
by Bob Abrames
The Art of Working Smarter
by Mike Daly
Do You Know the Way to "San Jose"
by Martin Deutsch
Selling Cruises
by John Hawkes
Selling Travel 101
by John Hawkes
Can this Trip be Saved
by John Hawkes
Fams & Seminars

CHAPTER CHATS

Memphis
Texas



Can This Trip Be Saved: Avoiding Car Rental Surprises
by John Hawks

article continued from

Extra Charges

When you make a reservation, ask about all additional charges beyond the basic daily rate, so that you will know the total quoted rental price. You have the right to request this quote in writing, if your client wishes.

Specifically, you should ask whether the quoted price contains all fees, taxes, and other charges that might be added to your final price. Also, ask the agent whether the quoted price is absolutely the lowest price that is available to you. (If you learn after the rental that a better rate was available, you should contact the car rental company for an adjustment in the price you paid. While the company is not legally required to make this adjustment, it may do so to keep you as a happy agent.)

Car rental companies set their rates depending on the location of the rental office, the number of days in the rental period (as well as weekends versus weekdays), the travel season, the year and model of the car, and special promotions or discounts (such as frequent flier programs, corporate/association/travel club specials, and credit card rates). Also, some car rental companies have franchise locations that may set their own local rates independently.

Penalties for Early or Late Returns

Ask the agent for the earliest and latest times your client can return the car to avoid any extra charges. Rental car companies generally quote rates that require you to keep a car for a minimum number of days or for a certain part of the week (such as weekends). If you turn in the car early, the company may charge you at a higher rate. This practice is completely legal, as long as you were given advance notice.

Most rental rates are calculated on a 24-hour basis. In other words, the typical rental day begins at the time you pick up the car and ends 24 hours later. (A car rental "week" usually equals five or more 24-hour days.) Most companies offer a one-hour grace period beyond the end of the rental day, with additional hours at a prorated hourly fee.

However, many companies also assess penalty charges for late vehicle returns, including "extra day" fees that can run as much as 30 percent or more of the total weekly rate. If you asked for additional services such as insurance, you will likely be charged a full day's coverage, even if you are only a few hours late beyond the rental period. Also, if your client rented the car at a special weekly or weekend rate, returning the early or keeping it beyond that special rental period may result in higher rates.

It is generally legal for car rental companies to charge these higher rates and penalties if you return your car earlier or later than you promised in your initial rental agreement. However, you should always request a refund or discount if your travel plans changed due to unforeseen circumstances (for example, an unexpected injury or a death in the family), as many companies will consider such adjustments.

Mileage Charges

Today, unlimited mileage is the standard in most car rental contracts, but you should confirm that when you make your reservation. For example, some companies have added a per-mile fee above a set number of miles in the case of vans, sports utility vehicles, and luxury cars. Also, if you will use the car mainly for local driving, a lower daily or weekly rate with a set number of miles may be cheaper than the standard rates for unlimited mileage.

Airport Rental Fees

City and state governments and airport authorities sometimes add surcharges and taxes directly to car rental rates. Because many car renters are travelers who do not live and vote locally, these fees have become a very popular and painless way to raise funds for tourism promotion, sports stadium construction, and other municipal programs. Some car rental companies also pass along to renters "facility charges" or "access charges" billed to the companies by local airport authorities.

Off-airport rental offices may not be subject to these fees, so their total charges may be lower than airport locations for the same rental car company. Also, you may find that the car rental company charges lower rates to travelers arriving by airplane. If you are making a local pickup at an airport car rental location (instead of arriving on a flight), ask whether there is a rate difference.

Driver Fees

Many companies assess a fee for any additional persons other than the primary renter who will be driving the car during the rental period. The charge for an additional driver may be a daily surcharge ($5-$10) or a single per-rental charge of $25 or more. California and Nevada specifically prohibit surcharges for additional drivers. Unless the extra driver fee includes additional insurance coverage for you, it is simply additional revenue for the car rental company.

Sometimes, additional driver fees will be waived for your spouse (but not usually your domestic partner), immediate family members, or business associates, as long as they sign the rental contract. However, some local rental offices and franchises may not waive such charges. Also, if the additional driver is not a family member living in the same house as the renter, the other driver must usually provide his own credit card for the rental records.

Your clients should not risk violating the rental agreement (and possibly losing their insurance coverage) by allowing another person to drive the rental car without complying with the company's rules for additional drivers. Instead, shop around for a company that charges little or nothing for extra drivers.

In the case of drivers under 25 years of age, many companies assess an extra daily "young driver" surcharge that can run as much as $80. If you fall within this age range, you should definitely ask the rental agent about such surcharges. One effective strategy to avoid such fees is to have an older driver rent the car and list the younger person as an additional driver. Most courts have held these charges not to be discriminatory.

Refueling Charges

Almost every car rental company requires you to return the vehicle with a full tank of gas (or, in a bizarre twist, the exact amount of gas in the tank when the car was picked up). If you forget to fill the tank before returning, or if you are running late and cannot stop to refuel the car, you may be forced to pay an exorbitant price per gallon ($5 or more) for the company to add fuel for you.

You will likely be offered a "fuel plan" option when you reserve the car via which you purchase a full tank of gas at or below local fuel prices when your clients pick up the car. On the one hand, you nearly always lose money with this option, because you can only break even if you return the car with an empty tank of gas. (Of course, running out of gas on your way to the airport to return a car with the prepaid fuel option can cost you a missed flight.) However, the fuel plan can save your clients time if they have an early morning flight or if they know that they will be unable to refuel before returning the car.

Sometimes, the company will exclude state and local taxes from the per-gallon fuel price, making it seem less expensive. Also, the company may add a surcharge simply for adding the fuel, or it may charge a minimum number of gallons even though your car needed less actual fuel for a complete fill-up. Always ask at the rental counter for the full details about fuel plan options.

If your clients re-fuel the car just before returning it, they should keep your gas receipt handy to present at the rental counter if you are questioned about re-fueling.


OSSN Home  |  Destination: Argentina |  President's Message  |  What You are Really Selling
Managing Your Travel Business  |  On The Move |  Do It Now
The Art of Working Smarter  |  Do You Know the way to “San Jose”  |  Selling Cruises
Selling Travel 101
 |  Can this Trip be Saved  |  Fams & Seminars  |  Chapter News