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Should rental-car companies get out of the mileage business entirely?

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Should rental-car companies get out of the mileage business entirely?

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Old Nov 22, 2003, 12:32 am
  #1  
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Should rental-car companies get out of the mileage business entirely?

Here's another run at a discussion starter: What would be your opinion if rental car companies got out of the airline-miles business entirely and instead did their own loyalty programs where you earned free car-rental days?

I notice what might be the beginnings of this with National's one-two-free promotion (Emerald Club) and one Avis is doing where you get x free days for every x rentals. I also remember Alamo's defunct True Blue program and getting a 3-day weekend off that (it seemed so under-publicized that I counted myself lucky to figure out that I had the free rental coming)

Would something like that give you more incentive than airline miles? Would it make you more likely to rent with the same company multiple times, even if it cost a few dollars more?

I'd tend to say yes, since car-rental companies have been treating airline miles like a red-headed stepchild ever since the mileage tax started up. Fifty miles a day for most U.S. programs isn't really an incentive for me, and it seems that in order to get more you have to enter coupon codes that lock out using other coupons to drive down the rate or get a free weekend day. Does anybody still get excited by 50 or 100 miles a day? Seems to me like the car-rental companies are trying to downgrade the mileage-earning so much that people won't miss it when it gets cut completely, but I wonder if they can put something constructive in its place.

The car-rent companies would also seem to be well-positioned for generous benefits because they've shifted so many of their operating costs onto add-on fees (concession recoupment, vehicle license, facility charges) that they'd probably charge even on "free" days. Given that, I'd think they could afford to be generous with free days as a reward for paid days.

Thoughts?
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Old Nov 22, 2003, 5:15 am
  #2  
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Hertz #1 Club (Gold) members can already participate in #1 Awards Program.
 
Old Nov 22, 2003, 9:46 am
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It hardly seems worth the bother for me to get Northwest miles for a rental: Assuming a frequent flier ticket is worth $300, a two-day rental at 50 miles per day is worth $1.20 (less FF tax surcharge). Even double or triple mile promotions only get you to $2 or $3.

But I will request Southwest credits for car rentals. Assuming the same $300 FF ticket, a two-day (or one-day) rental is worth $9.38 (less FF tax). And Hertz has been offering triple credit for two-day intermediate rentals, which gets you to $28.13 (less FF tax).
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Old Nov 22, 2003, 10:57 am
  #4  
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I have been directly nearly all of my rentals to Hertz #1 Awards for quite some time now. Spend $600 (less if you are President's Circle) - earn 1 free day. It's a no-bull reward: good just about anywhere for standalone 1-day rentals with few blackout dates. I've used 'em at HHV, downtown SFO, and in Las Vegas for rentals that would have otherwise cost $50-60 with no Priceline option available.

I kind of hope no one else follows this model. If car agencies start investing money into frequency programs, then I fear everyone will start building complex, restrictive programs. I like Hertz's under-publicized barebones operation. And I like the quick-hitting 7-10% kickback on my spending.

Budget also used to have a program, but they watered it down big-time about 2-3 years ago. I bailed when they cut all of the points in half. I don't know if that program is still alive or not, but various Budget locations were bailing out of it on their own.

I was with Alamo True Blue just long enough to pick up a couple of free weekends.
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Old Nov 22, 2003, 2:49 pm
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Esp. for short rentals I claim Qantas miles @ 1000 per rental & NO FF tax. For 30K QF, I can get a Y award on AA to Mexico or Caribbean (or 45 in J vs. 60K AAdvantage miles.)

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Old Nov 23, 2003, 5:03 pm
  #6  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RustyC:
Fifty miles a day for most U.S. programs isn't really an incentive for me</font>
couldn't agree more.

On a further note, if my employer was paying for rental cars I would participate in a program, most likely Hertz as they used to be my fave. Now that it is my own dime, in no way are the rental car programs worth the $ IMO.
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Old Nov 24, 2003, 3:32 am
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As I recall, there was something last year where they (RC Cos) were actually charging 2.50 per day to give you the miles.

I switched to Hertz #1 Gold, and am delighted as well as the others here.
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Old Nov 24, 2003, 8:32 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Brendan:
Esp. for short rentals I claim Qantas miles @ 1000 per rental & NO FF tax. For 30K QF, I can get a Y award on AA to Mexico or Caribbean (or 45 in J vs. 60K AAdvantage miles.)

</font>
Yep. Non-US programs are the way to go. BA has a promotion with Avis at the moment which can yield 6000 miles for 4 rentails (I think).

Europcar are giving 1000 miles per rental to KLM elites until the end of the month - (you can get a three day weekend rental in Europe for about EUR50-75 including tax, insurance and unlimited mileage). A great deal!

-- Dambus

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Old Nov 24, 2003, 11:32 am
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Yes, the 50 miles are hardly worth it, but it's one less program to worry about. Keeping everthing consolidated is a plus. Still, a little part of me looks forward to the "Laundering CO miles through Amtrak or Avis?" thread.

BTW, Budget still has the program, and it is a decent way to back into FF miles without any tax. Off the top of my head I think you can get 500 miles for 600 points. Double points for online res. and its close to the 50 mile per day you'd get anyway. They also have the free day certs, but the rest of the program is ridiculous.
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Old Nov 24, 2003, 12:27 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Brendan:
Esp. for short rentals I claim Qantas miles @ 1000 per rental & NO FF tax.
</font>
Which rental car companies giver 1000 QF miles per rental? I usually have one-day auto rentals, and this would be a very good rate of return.
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Old Nov 24, 2003, 1:11 pm
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Ditto all the above. I don't even bother anymore - especially since I rent mostly from Priceline anyway.

Incidentally, speaking of deals with non-U.S. carriers, what's a good car deal for LH miles?

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Old Nov 24, 2003, 1:33 pm
  #12  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by yorock:
Which rental car companies giver 1000 QF miles per rental? I usually have one-day auto rentals, and this would be a very good rate of return. </font>
Avis, Budget, Hertz, Thrifty, in alphabetical order. But you should be aware that it's only 700 points per rental now.
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Old Nov 24, 2003, 3:17 pm
  #13  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Patron:
Hertz #1 Club (Gold) members can already participate in #1 Awards Program. </font>
Hmmm...How good are they with handling leisure rentals with discount coupons? Hertz is always sending me mailings for the #1 Club, but it seems geared toward getting all your personal info collected so you can be dropped off right at your car. Whenever I rent with them I always end up at the counter because of coupons (but the coupon savings is significant enough not to give up). Do they still give credit toward the free days?

Unrelated-ly, Hertz is one of the few programs giving KE Skypass miles (400 a pop, I think). I don't know if they're supposed to check tickets or if a flight is required, but I have always entered the number in on the website and have never been asked to produce a ticket.

Budget, OTOH, has turned me down for mileage credit at the counter (even at 50/day with a recovery fee!) because I was on a "discounted" rate and using a coupon. Talk about cheap. I don't know of any other car company that does that.

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Old Nov 24, 2003, 3:24 pm
  #14  
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Virgin gives 500 or 700 per rental. And, you can transfer their points to Hilton.
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Old Nov 24, 2003, 6:53 pm
  #15  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RustyC:
Hmmm...How good are they with handling leisure rentals with discount coupons? Hertz is always sending me mailings for the #1 Club, but it seems geared toward getting all your personal info collected so you can be dropped off right at your car. Whenever I rent with them I always end up at the counter because of coupons (but the coupon savings is significant enough not to give up). Do they still give credit toward the free days?
</font>
I haven't used a paper coupon in a couple of years with Hertz - except for the Free Day certificates from the #1 Awards program.

In my experience, any paper coupon that I've ever received from Hertz has an electronic "cousin" on the Hertz website. Sometimes you have to dig into the #1 Club Gold area, and sometimes you have to click on "Partner offers" - an odd place for Third-Day-Free, double upgrades, and other non-air-miles-related coupons. But they are usually there...

The e-coupon PC codes start with the number "9". If that is on your rental record, no paper coupon is needed.

Finally, if you still have a really good paper coupon that you want to use, you are allowed to present it at return on #1 Club Gold rentals. If you ever have a question or need to go to a counter - look for the Gold section and you won't have to co-mingle with the unwashed masses.
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