FlyerTalk Forums - View Single Post - "Parking ticket surcharge"
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Old Jun 28, 2010 | 4:31 pm
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Elola
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Originally Posted by DCAview
Yep. Parking tickets cost rental car companies millions of dollars per year. As do employees. And cars. And electricity. And advertising. Like any business, car rental companies incur costs that are inherent to the provision of their product or service.

True point, however, unpaid parking tickets are the direct result of deliberate negligent actions by customers, unlike the other costs you mentioned. By making the cost more transparent as opposed to building it into the rate perhaps they hope to give renters a tangible idea of how much ignoring parking tickets adds to the price of each transaction. Fees like this are included in initial total price quotes (and itemized on confirmations) so it's not as if they're hidden costs to the consumer.

Truly "junk" fees/taxes IMO are ones that do not correlate in any way to a cost incurred to produce the product or service being offered, like cities that choose to make rental car companies (who then pass through the fee to the renter) pay for new arenas or convention centers.

The debate over which pricing structure is "better" (low base rates w/incremental fees or higher, inclusive base rates) is age old and it seems clear that the market supports the former and punishes the latter so until purchasing practices change, we can't expect pricing practices to change, either.
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