anthonyanthony

Regarding figuring out how much the miles are worth from the tax-

I did this for a Hertz rental at SFO about a month or so ago. I did the math on the amount of the tax and calculated that they are valuing the awarded miles at 1.5 cents each.

Whether or not that means Hertz is paying 1.5 cents for the miles, I don't know. But since the "how much are miles worth?" topic is a very much discussed topic on Flyertalk, I thought it interesting that Hertz values them at 1.5 cents each.

mdtony

I've read in a lot of financial magazines that they are wort around two cents a mile. If you think about it, that makes sense. A round trip coach fare in the continental US won't cost you more than $500, and it normally takes 25,000 miles for a free trip.

Steve M

Would it be fair to single out the rental car industry? For example, few retail stores that I'm aware of posts their prices inclusive of state and local sales tax. The only exceptions I can think of are alcohol served in a bar or restaurant (in many states) and gasoline. Well, I suppose airline tickets are quoted with the federal taxes included, but not the local PFC's or federal or foreign fees for international travel.

I agree that certain fees that rental car agencies add on to the bill should be included in the quoted price (such as the car registration fee - this should be a cost of doing business that's included the price), but most of the fees are government taxes on the customer directly related to the price charged.

For things such as state sales tax, airport tax, stadium fee, etc., I think it's important that these be broken down on the bill, so that consumers know how much the governments are hosing them.

Shinkansen

Can we stop calling these taxes? The rental companies want to make it sound as if they do not have a choice to collect them from us. They are not taxes on us, but rather taxes on the companies. To us, they are fees, fines, surcharges, or whatever, but not taxes. This is a cost of doing business which they are passing directly onto us, as a separate fee. Why should they stop here? Why not collect the "taxes" they have to pay on the puchase of the vehicle as an additional add on fee?

I have no idea why this thread made me think of this, but there is a local pizza shop which has "free delivery". However, if you pick it up yourself, they give you a dollar off. When you point out that delivery therefore is not free, but costs a dollar, they sort of glaze over. It is similar to discussing the miles fee issue with a rental company. "It is a tax, Sir" No it's not. They are just charging for free delivery.

QuietLion

I would love Congress to bring us in line with the Europeans and require all quoted prices to be net of all taxes, fees and surcharges.

Beckles

Back when this started a few years ago, I believe the reason they did this was at the request of their large corporate clients, this way the rental car companies would not build that tax into the price everyone pays and companies could avoid having to pay it to Hertz by not allowing their employees to tax FF miles or not reimbursing their employees for that tax.

mdtony

National already does that. When you make your reservation, they quote you the price with all taxes and fees included.

I don't really care -- like I said, it's not my money, and it's such a small amount, but it's kind of like, geez, guys, can't you spot me $0.26?