Excellent L.A. Times article re: car rental fees
Dec 17, 2011, 1:48 am
#1
Original Poster
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Excellent L.A. Times article re: car rental fees
Dec 17, 2011, 5:47 am
#4
Join Date: Sep 2008
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Rich Broome, a Hertz spokesman, acknowledged that disclosure of all the taxes and fees for a rental car doesn't come until a customer has reached the end of the booking process.
He said that because surcharges can vary widely from place to place, it would be impossible to break things down for customers in advance.
I disagree. Although it would be difficult to give people an accurate estimate of all taxes and fees before details of a booking are in place, at the very least rental-car firms can introduce greater transparency to their pricing.
...
I don't need to know how much every fee will run me. But if there might be an "airport concession fee recovery charge" or a state tourism fee, I want to know that.
He said that because surcharges can vary widely from place to place, it would be impossible to break things down for customers in advance.
I disagree. Although it would be difficult to give people an accurate estimate of all taxes and fees before details of a booking are in place, at the very least rental-car firms can introduce greater transparency to their pricing.
...
I don't need to know how much every fee will run me. But if there might be an "airport concession fee recovery charge" or a state tourism fee, I want to know that.
(b) If rental car companies (or airlines with YQ) have mandatory fees I agree those should be included upfront in the advertised price. If the fees are optional (car insurance or car fuel) then of course they shouldn't be in the upfront cost.
(c) The US is built around pre-tax cost. I prefer all-in cost including taxes, but if car rental companies have to show post-tax costs then so should your grocery store, department store and everyone else selling things in the US.
Other than fuel and rent, can someone else list anything else that is priced inclusive of tax??
Dec 17, 2011, 6:52 am
#5
Join Date: Jan 2007
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(a) No, estimating taxes & fees upfront will not increase accuracy, actually it will probably increase confusion & servicing cost (the pre-quote said 5.42, but the final page said $6.49 for XXX fee). We also know ranges wouldn't work as people just focus on the total cost so saying $20/day + $10-$15/day in fees doesn't work for Kayak.
(b) If rental car companies (or airlines with YQ) have mandatory fees I agree those should be included upfront in the advertised price. If the fees are optional (car insurance or car fuel) then of course they shouldn't be in the upfront cost.
(c) The US is built around pre-tax cost. I prefer all-in cost including taxes, but if car rental companies have to show post-tax costs then so should your grocery store, department store and everyone else selling things in the US.
Other than fuel and rent, can someone else list anything else that is priced inclusive of tax??
(b) If rental car companies (or airlines with YQ) have mandatory fees I agree those should be included upfront in the advertised price. If the fees are optional (car insurance or car fuel) then of course they shouldn't be in the upfront cost.
(c) The US is built around pre-tax cost. I prefer all-in cost including taxes, but if car rental companies have to show post-tax costs then so should your grocery store, department store and everyone else selling things in the US.
Other than fuel and rent, can someone else list anything else that is priced inclusive of tax??
Dec 17, 2011, 9:11 am
#6
Join Date: Aug 2010
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Some of the fees are just plain politics, carefully crafted by lobbying/PR firms to influence public opinion. Putting "regulatory cost recovery" on a phone or car rental bill, for example, suggests that there is a real cost to the consumer without demonstrating potential consumer benefit.
Dec 17, 2011, 6:53 pm
#7
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Sites like Kayak make comparison shopping pretty easy - little to whine about regarding that. The usurious taxes really ought to be illegal. MCI seems to be one of the worst places, I think I have payed for 10% of their arena there.
For one week at MCI:
Apt Conc Recov Fee $16.67
Arena Fee Rec $28.00
Facility Charge $21.00
Energy Recovery Fee $3.15
State Tax $18.53
Trans Facility Chg $16.52
Veh Lic Cost Rec $8.40
Total Est. Mandatory Charges
$112.27
Total Base Rate*
$138.66
40 + % taxes. Crazy.
For one week at MCI:
Apt Conc Recov Fee $16.67
Arena Fee Rec $28.00
Facility Charge $21.00
Energy Recovery Fee $3.15
State Tax $18.53
Trans Facility Chg $16.52
Veh Lic Cost Rec $8.40
Total Est. Mandatory Charges
$112.27
Total Base Rate*
$138.66
40 + % taxes. Crazy.
Last edited by Doc Savage; Dec 17, 2011 at 6:59 pm
Dec 17, 2011, 7:14 pm
#8
Join Date: Jan 2011
Posts: 208
Sites like Kayak make comparison shopping pretty easy - little to whine about regarding that. The usurious taxes really ought to be illegal. MCI seems to be one of the worst places, I think I have payed for 10% of their arena there.
For one week at MCI:
Apt Conc Recov Fee $16.67
Arena Fee Rec $28.00
Facility Charge $21.00
Energy Recovery Fee $3.15
State Tax $18.53
Trans Facility Chg $16.52
Veh Lic Cost Rec $8.40
Total Est. Mandatory Charges
$112.27
Total Base Rate*
$138.66
40 + % taxes. Crazy.
For one week at MCI:
Apt Conc Recov Fee $16.67
Arena Fee Rec $28.00
Facility Charge $21.00
Energy Recovery Fee $3.15
State Tax $18.53
Trans Facility Chg $16.52
Veh Lic Cost Rec $8.40
Total Est. Mandatory Charges
$112.27
Total Base Rate*
$138.66
40 + % taxes. Crazy.
Dec 17, 2011, 9:53 pm
#9
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Scott Baggett traveled from California to Hawaii recently. While on the islands, he rented a car from Hertz.
Baggett, 38, had thought he'd be paying $17.95 a day for his wheels. The actual charge, once all the taxes and fees were piled on, came to $32.95. That's nearly double the advertised price.
Baggett, 38, had thought he'd be paying $17.95 a day for his wheels. The actual charge, once all the taxes and fees were piled on, came to $32.95. That's nearly double the advertised price.
Really, he had no clue there would be extra fees added on? Did the hotel shock him when it added the taxes on? Does he dispute meals in a restaurant when they add in taxes at the end?
I'm sorry, I just don't see the constant need to meld everything to the stupid. The reservation shows the total estimated cost in addition to the daily cost, as does the contract when you pick up the car.
Yes it would be nice if Hertz would give you the estimated total on the first page like some other sites do. But at the same time, it's only a page or two into the process, and it should never be a surprise to anybody, at least anybody who can read.
Dec 18, 2011, 9:05 am
#10
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I've been using carrentals.com for pleasure travel, and it's great at showing all-in pricing on a single screen, right off the bat, no click-throughs needed to see the price with taxes. If they can do it, why can't individual car rental websites?
Dec 18, 2011, 9:28 am
#11
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At least for me, renting a car is the most unpleasant part of booking a trip, moneywise, so i do my utmost to rely on other means of transport.
Dec 19, 2011, 5:21 am
#12
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I think that these pricing schemes are deliberately deceiving to screw the consumer. Costumers are lured with prices that appear to be lower and ultimately have to pay considerably more. Say the full price up front and some people might turn away.
Also, labeling some of the "MORE CASH IN MY FREAKIN POCKET" fees as surcharges is evil because it is effectively lying to the customer. (They play it like it's some tax, when it really is just more money that they pocket).
I really don't think that any of the entities involved (airlines, car rental companies) will voluntarily stop lying; it has to be done by the legislature. In the EU airlines are only allowed to advertise a.i. RT prices and it's working out pretty well, but that's because a law was passed to mandate that.
When booking, you do specify where you pick up and drop off the car, and they should be aware of all the taxes associated with those locations, as well as any fees/surcharges, so I don't see why they can't give you the all-in car rental price up front.
Also, labeling some of the "MORE CASH IN MY FREAKIN POCKET" fees as surcharges is evil because it is effectively lying to the customer. (They play it like it's some tax, when it really is just more money that they pocket).
I really don't think that any of the entities involved (airlines, car rental companies) will voluntarily stop lying; it has to be done by the legislature. In the EU airlines are only allowed to advertise a.i. RT prices and it's working out pretty well, but that's because a law was passed to mandate that.
When booking, you do specify where you pick up and drop off the car, and they should be aware of all the taxes associated with those locations, as well as any fees/surcharges, so I don't see why they can't give you the all-in car rental price up front.
Dec 19, 2011, 5:53 am
#13
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I just searched for a car rental on Travelocity. It presents me with a grid of car classes and rental companies with each box showing the price both with, and without, all fees. When I click on one of them I get a detailed breakdown of each fee and tax. What more do you want?
Dec 19, 2011, 9:13 am
#14
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For anyone who wants to see the full price up front and compare, simply use something like Kayak. If you are searching individual company sites serially, you are really wasting time.
Dec 19, 2011, 11:00 am
#15
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... And don't get me started with this character who, when I was returning my car, knew where to "scratch away some dirt" in order to reveal some old scratch and hence double my rental cost ... Or the German way of charging for winter tyres ... Or ...