FYI - New Hertz Energy Surcharge
Oct 8, 2008, 8:02 pm
#1
Original Poster
Join Date: Jan 2005
Location: Pacific Northwest
Programs: 2011 Air: AA (Plat) UA (Prem); Hotel: HGP (Dia), HH (Dia), KIT (IC); Car: HZ (PC) AF
Posts: 688
FYI - New Hertz Energy Surcharge
Effective immediately, Hertz is adding a $1.03 "Energy Surcharge" to all new rental reservations. The charge is per rental, not per day.
I became aware of this when attempting to make a rental at my HLE for the upcoming weekend. The rental was identical to one I made last weekend and, while the daily rate was the same, the total quoted amount was higher. I looked closer and discovered this charge. To eliminate this being a local/state authority charge, I explored another reservation in another state at an airport location. Sure enough, the same charge appeared. I called Hertz and they confirmed (after exploring - the CSRs were not aware) that because of rising costs they were implementing this charge at all corporate locations. I can only assume the franchised locations will follow suit.
I realize this is only $1/rental, but it really chafes me when they implement this via a surcharge. If costs are going up, raise daily rates. If they raised rates 50¢, I probably wouldn't have thought twice about it. It seems to me they have implemented this in such a fashion because they assume that most people will not catch this small, but very profitable charge (multiply $1 times all Hertz rentals!). I have already complained to Corp. Customer Service. And I held off on the intended rental. I may preclude the rental or will go to Avis even at a higher cost.
Further, I'm considering shifting one or two Hertz rentals to a competitor. Given that I rent 25-30x/year with Hertz, this new surcharge would net them an extra $25-30 annually. If I shift two reservations, they will lose more than that. And I will write them documenting the business they lost. A shift of one or two rentals doesn't affect my status at Hertz yet deprives them of added revenue/profit they are seeking.
If you agree with me, I would encourage you to complain to Hertz and consider a similar shift of rental companies for one or two rentals if you have the flexibility. I understand some business travelers may not have that flexibility given their companies travel policies.
And for those of you that may consider my protest petty, spare me your diatribe. I can understand your position. I only hope you can appreciate my wrath at the way Hertz has chosen to implement this. And if we complain enough, they may back off (consider how UA backed off after complaints about removing comp. food service trans-Atlantic). And, if we don't complain and this sticks, you can assume that Avis, Enterprise, etc. will follow!
Anyway, the primary purpose of my post is to help make you aware of this charge.
I became aware of this when attempting to make a rental at my HLE for the upcoming weekend. The rental was identical to one I made last weekend and, while the daily rate was the same, the total quoted amount was higher. I looked closer and discovered this charge. To eliminate this being a local/state authority charge, I explored another reservation in another state at an airport location. Sure enough, the same charge appeared. I called Hertz and they confirmed (after exploring - the CSRs were not aware) that because of rising costs they were implementing this charge at all corporate locations. I can only assume the franchised locations will follow suit.
I realize this is only $1/rental, but it really chafes me when they implement this via a surcharge. If costs are going up, raise daily rates. If they raised rates 50¢, I probably wouldn't have thought twice about it. It seems to me they have implemented this in such a fashion because they assume that most people will not catch this small, but very profitable charge (multiply $1 times all Hertz rentals!). I have already complained to Corp. Customer Service. And I held off on the intended rental. I may preclude the rental or will go to Avis even at a higher cost.
Further, I'm considering shifting one or two Hertz rentals to a competitor. Given that I rent 25-30x/year with Hertz, this new surcharge would net them an extra $25-30 annually. If I shift two reservations, they will lose more than that. And I will write them documenting the business they lost. A shift of one or two rentals doesn't affect my status at Hertz yet deprives them of added revenue/profit they are seeking.
If you agree with me, I would encourage you to complain to Hertz and consider a similar shift of rental companies for one or two rentals if you have the flexibility. I understand some business travelers may not have that flexibility given their companies travel policies.
And for those of you that may consider my protest petty, spare me your diatribe. I can understand your position. I only hope you can appreciate my wrath at the way Hertz has chosen to implement this. And if we complain enough, they may back off (consider how UA backed off after complaints about removing comp. food service trans-Atlantic). And, if we don't complain and this sticks, you can assume that Avis, Enterprise, etc. will follow!
Anyway, the primary purpose of my post is to help make you aware of this charge.
Oct 8, 2008, 11:46 pm
#3
Join Date: Sep 2008
Location: San Diego
Programs: Anything that gives nice sign up bonuses
Posts: 120
wth,
You are absolutely right. Along a parallel tangent, I find it infuriating that an airline ticket purchase can cost X but add in the fuel surcharge and the price can become X + hundreds of $. The fuel surcharge, whether for airline ticket or car rental, is not a govt collected tax, but a private companies hidden fee.
Dishonest marketing if you ask me and an unfair way to try and beat competitors.
My 2 cents.
You are absolutely right. Along a parallel tangent, I find it infuriating that an airline ticket purchase can cost X but add in the fuel surcharge and the price can become X + hundreds of $. The fuel surcharge, whether for airline ticket or car rental, is not a govt collected tax, but a private companies hidden fee.
Dishonest marketing if you ask me and an unfair way to try and beat competitors.
My 2 cents.
Oct 10, 2008, 11:37 am
#8
Join Date: Oct 2000
Location: Seattle WA, USA
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Oct 10, 2008, 11:40 am
#9
Join Date: Jun 2005
Location: AUS
Programs: AA Exec Platinum/MM, DL Gold/MM, Hilton Diamond, Accor Platinum, Hertz Presidents Circle
Posts: 6,975
I don't get it. We're the ones buying the gas. I can understand a delivery service or airline adding an energy surcharge but what extraordinary energy-related costs does Hertz have that every other business doesn't? The shuttle buses?
Oct 10, 2008, 11:30 pm
#11
Join Date: Jul 2007
Posts: 49
Re:
I am a counter sales rep for Hertz and you all are complaining about a fee that is $1 and that you are going to rent with another competitor. I know that Avis and Budget also have an energy surcharge so you're not getting too far by renting elsewhere. AND- Avis and Budget have had this fee for quite a while. It's something new for Hertz. Just thought I would let you all know that Hertz is not the only company that has this fee.
Oct 10, 2008, 11:52 pm
#12
Join Date: Oct 2007
Location: HNL
Programs: AS MVPG
Posts: 236
OP's complaint is that Hertz is raising prices through the back door by making up new fees. This is just like the phone company tacking on their all of their fees so that they can raising prices without seeming to do so. And no one likes that. OP (and I) aren't objecting to the increased cost, per se, we're objecting to the method in which the cost was passed on. If you believe in your product, then have the guts to raise the price and trust that Hertz's quality will justify it in the eyes of the customer. If you don't believe that will work, then you need to tweak the business model.
geez10, please don't take this the wrong way, but that's not a good customer service response to the OP's complaint.
geez10, please don't take this the wrong way, but that's not a good customer service response to the OP's complaint.
Last edited by finlandia; Oct 11, 2008 at 12:20 am Reason: better words
Oct 11, 2008, 7:39 am
#13
Join Date: Sep 2005
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Programs: AA Exec Plat - some level of status in IHG, Marriot & HIlton
Posts: 1,516
OP's complaint is that Hertz is raising prices through the back door by making up new fees. This is just like the phone company tacking on their all of their fees so that they can raising prices without seeming to do so. And no one likes that. OP (and I) aren't objecting to the increased cost, per se, we're objecting to the method in which the cost was passed on. If you believe in your product, then have the guts to raise the price and trust that Hertz's quality will justify it in the eyes of the customer. If you don't believe that will work, then you need to tweak the business model.
geez10, please don't take this the wrong way, but that's not a good customer service response to the OP's complaint.
geez10, please don't take this the wrong way, but that's not a good customer service response to the OP's complaint.
Oct 11, 2008, 9:24 am
#14
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I just happened to price out a compact rental (one day, Nov 11) for SFO, and Hertz.com listed the following additional charges:
Tax 8.87 USD
transportation and facilities fee 17.50 USD
califonia tourism commission assessment 2.69 USD
Are they going to slap that extra fee onto the total shown on the website later on? Since the website says "Rate guaranteed", they'd probably weasel out of that by saying "the rate stayed the same, this is just a surcharge".
I am really tired with all kinds of companies adding surcharges and fees to the advertised rate for what is simply part of their cost of doing business. I remember hotels slapping on a $1 energy surcharge per day a few years ago during the California energy crisis. And, of course, the phone companies are notorious for this.
Tax 8.87 USD
transportation and facilities fee 17.50 USD
califonia tourism commission assessment 2.69 USD
Are they going to slap that extra fee onto the total shown on the website later on? Since the website says "Rate guaranteed", they'd probably weasel out of that by saying "the rate stayed the same, this is just a surcharge".
I am really tired with all kinds of companies adding surcharges and fees to the advertised rate for what is simply part of their cost of doing business. I remember hotels slapping on a $1 energy surcharge per day a few years ago during the California energy crisis. And, of course, the phone companies are notorious for this.
Oct 11, 2008, 9:01 pm
#15
FlyerTalk Evangelist
Join Date: Dec 2003
Location: LAX
Posts: 10,908
None of the extra charges listed are driven by Hertz. As much as I hate the fees I am not gonna blame Hertz for them (think of the airport fees, sept 11 fees and similar garbage the airlines are forced to collect)
Recently LAX also added $10 "airport facility fee" and we can thank the city of LA for that
Recently LAX also added $10 "airport facility fee" and we can thank the city of LA for that
I just happened to price out a compact rental (one day, Nov 11) for SFO, and Hertz.com listed the following additional charges:
Tax 8.87 USD
transportation and facilities fee 17.50 USD
califonia tourism commission assessment 2.69 USD
Are they going to slap that extra fee onto the total shown on the website later on? Since the website says "Rate guaranteed", they'd probably weasel out of that by saying "the rate stayed the same, this is just a surcharge".
I am really tired with all kinds of companies adding surcharges and fees to the advertised rate for what is simply part of their cost of doing business. I remember hotels slapping on a $1 energy surcharge per day a few years ago during the California energy crisis. And, of course, the phone companies are notorious for this.
Tax 8.87 USD
transportation and facilities fee 17.50 USD
califonia tourism commission assessment 2.69 USD
Are they going to slap that extra fee onto the total shown on the website later on? Since the website says "Rate guaranteed", they'd probably weasel out of that by saying "the rate stayed the same, this is just a surcharge".
I am really tired with all kinds of companies adding surcharges and fees to the advertised rate for what is simply part of their cost of doing business. I remember hotels slapping on a $1 energy surcharge per day a few years ago during the California energy crisis. And, of course, the phone companies are notorious for this.