ENOTTY

Could someone summarize the state of no show fees across the entire rental industry?

In my experience I haven't come across them yet, but it's not like I scan the terms and conditions of new rental very closely. I've heard rumors of limited rollouts (certain locations, certain holiday periods, etc). How do these affect third party booking sites like Priceline?

IAHtraveler

It's kinda like airline fare rules: each company has different policies that apply to different rentals in different ways. You need to read the T&C of your specific reservation to be sure. Even within the same rental company, some are fully refundable without any no-show fees, others are prepaid and no changes possible while others are prepaid but changeable where you can reuse the credit if you cancel within X hours before the rental.

AutoSlash

The rental companies really want you to prepay. They will try to entice you with lower rates to do so, but often these prepayment deals come with penalties. How much and the conditions depend on the rental company and the channel you book through.

Assuming you don't book a prepay rate, the vast majority will let you cancel with no penalty, and frankly, if you don't enter your credit card, then there's no way they can charge you. The only caveat is if you're a member of a frequent renter program and they have your credit card on-file. That said, in our experience, unless it's a rental:

a) in the NYC area
b) of a higher-end specialty vehicle or a larger SUV
c) during a peak holiday period

...there should never be any penalty for a no-show fee on a pay-at-the-counter reservation.

Bonehead

Do you think that no shows/late cancellations cost the industry a significant amount of money?

Do you foresee the industry instituting change fees?

AutoSlash

I think it does cost the industry money, and they would love nothing more than to institute change/cancel fees across-the-board like the airline industry, but they are all hesitant to do so lest one company takes the leap and the others don't follow. If that happens, then the company with the more restrictive policies could see their market share (and ultimately their profits) decrease.

JLewisinSyr

It's not just direct loss revenue as almost all (if not all) rental company's over book, but when their forecasting models fail and more people show up then physical cars available you end up with a customer service issue that isn't just lost revenue, but a cost to the company in recovery charges.

jackal

Unfortunately, with industry consolidation (now being down to just three major companies), I think the chances of one being daring enough to implement across-the-board no-show fees is now relatively higher. We'll see.

It could be a golden opportunity for a newer/lower-tier company to differentiate itself, though, if the three majors go with no-show fees.

lougord99

I would gladly give a credit card to guarantee a reservation, if they would guarantee me they will have the car I reserve. That is assuming a reasonable cancellation period such as 24 hours before rental.

storewanderer

I could see the no-show fees being implemented across the discount brands (Payless, Dollar/Thrifty, Alamo) but not at the other supposedly higher tier brands of the same companies.

I always wondered why the rental car companies didn't have the same penalties as hotels and airlines for cancellations. I am thankful for it, but surprised nonetheless.

Yellowjj

I personally consider Alamo a step above Payless/Thrifty and probably Dollar as well despite it being marketed as a discount brand. Enterprise itself feels like a Payless/Thrifty competitor.

jackal

I was searching for a minivan off-airport in LAS yesterday and Hertz.com presented me with a notice I'd be charged a $50 cancellation fee if canceled more than 24 hour after booking and within 24 hours of pick-up and $90 if canceled within 24 hours of pick-up and the full cost of the rental if no-showed without canceling. These were all on pay-at-counter rates.

This was at one of the HLEs inside one of the casinos, which I know are special cases (due to limited staff/parking/etc.), but it showcases that their platform is capable of this option, which is not a positive sign.