Hertz adding new fee

[Amberle3]

I read this on another forum. Hertz is adding a $2.50 "reservation fee" as of February 16 for cars booked domestically. It applies to corporate and leisure bookings, except for cars picked up in "Hawaii, Indiana, Illinois, Iowa, Nevada, New York, North Carolina and South Carolina because these states do not permit such fees. California permits such fees for corporate rentals, but not for leisure rentals."

Apparently car rental costs have been too low, so now they're adding on a fee to make some more money. This will apply to cars booked through any means, including their website, but not to walk-ups since those don't have actual reservations.

Just something to keep in mind when comparing prices.

 

[safetymom]

Has anyone confirmed this with Hertz? I am a Hertz Gold 5 Star member and I haven't heard anything about new fees.

 

[CarolA]

I booked with Hertz yesterday and didn't see it and no one on flyertalk can confirm it.

I did send Hertz an email. WIll let you know if I hear back.

 

[safetymom]

The OP mentions Feb. 16. I have a rental scheduled and it isn't on there.

 

[safetymom]

Carol, another board is discussing this but so far no one has provided any proof. That board seems to think it is for corporate customers.

I have written Hertz to ask about this.

 

[CarolA]

Found this

http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1000799940

Looks like it may be real, but that they are doing the airline trick seeing if anyone joins them.

 

[Amberle3]

The info I read was in an article written for a travel agent magazine website. I'd post a link but you have to register in order to read it (not sure, but you might have to be a travel agent to register).

Here's the text of the article:
Hertz to institute fee on most U.S bookings (02/14/2005)

By Dennis Schaal

PARK RIDGE, N.J. -- Hertz will introduce a $2.50 reservation fee Feb. 16 on U.S. car rentals booked domestically.

The fee, which applies to corporate and leisure bookings through all distribution channels, will not apply for cars picked up in Hawaii, Indiana, Illinois, Iowa, Nevada, New York, North Carolina and South Carolina because these states do not permit such fees. California permits such fees for corporate rentals, but not for leisure rentals.

Richard Broome, Hertz’s vice president of corporate affairs, said the fee will be implemented to recoup rising costs because of increasingly complex reservations and distribution channels. He cited online agencies and meta-search engines as examples of the complex distribution environment.

Rental prices have been decreasing and costs have been rising, Broome said, necessitating the move to implement the fee to recoup costs.

Broome noted that Hertz tried unsuccessfully to raise prices in the past year, as the price increases were not widely matched.

The fee, which will be fully disclosed on customers’ bills, will be levied through all distribution channels, including Hertz.com, he said. There will be no fee for walkup rentals, he added, because the company does not consider these “reservations.”

Prices in corporate contracts generally are fixed for the length of the contract, but fees can be implemented, Broome said.

He said the introduction of a new fee will not be a major implementation issue because the reservations go through the Hertz system. Hertz will block the fee, for instance, when the car rental pickup is in one of the states that bars such fees, Broome added.

 

[shelbyjosh]

So will I have to pay this fee for our March rental? I booked our car months ago.

 

[Lewisc]

I wonder if this is also a way to get some money from people who make multiple reservations and then either cancel or just don't show up. I'm not sure if you're going to be charged even if you don't use the reservation.

 

[safetymom]

This is the answer I got when I wrote Hertz. I sure didn't get any details.


Thank you for taking the time to write us regarding this matter. This fee is used to offset reservations and operating costs.

Regards,
Fontina
Correspondent
www.hertz.com
The Hertz Corporation
10401 N Penn
Oklahoma City, OK 73120
U.S.A.

 

[CarolA]

Got the same response. I wrote back that I would consider Avis and National in the future. My company has good contracts with both of them.

 

[dvc guy]

From corporate travel group today
For Immediate Release



Hertz Puts On The Brakes



Cost-transfer proposal abandoned



BTC advocates 5 principles of distribution system reform



RADNOR, PA., February 15, 2005-The Business Travel Coalition (BTC) today applauded the Hertz Corporation's decision NOT to implement the distribution cost surcharge as announced to its customers late last week. Many distributors and corporate travel managers expressed immediate concern over this proposed policy.



"With GDS deregulation unfolding, there will be attempts to further reform the travel distribution system. Some efforts will likely be well-considered and seek to truly make the system more efficient. Others will represent attempts to force-march distributors and corporate customers into more costly arrangements, or stated differently, simply transfer costs from one participant to another," observed BTC chairman Kevin Mitchell.



BTC believes that it is important for distributors and customers to be proactive in helping shape travel industry direction. Based upon months of industry-wide collaboration, BTC is proposing 5 principles of travel distribution reform that it believes would be useful for industry participants to consider when developing policy(1). Distributors and customers are encouraged to review them below and consider being a Signatory to a "Principles Declaration."



Reform Principles



1. Reform initiatives should proceed from a thorough customer impact analysis on business travelers and those organizations that fund business travel -- the ultimate consumers of business travel services.



2. No reform initiative should lower the value of a corporation's supplier contracts.



3. Reform initiatives should result in true cost reductions as opposed to mere unbundling or shifting of costs to other parties.



4. No reform initiative should directly or indirectly add administrative costs or complexity to the distribution process for distributors or end-customers.



5. Reform initiatives should be presented in the form of inducements and should not penalize business travelers or the organizations that fund business travel for choosing reservations or fulfillment processes that best meet their needs.



Distributors and customers, who can embrace these principles as a declaration to suppliers for their consideration, can so indicate at http://btcweb.biz/gds.htm. A final set of principles will be sent to travel industry suppliers with Signatories listed.



Note: (1) These principles are based on industry input in the aftermath of the 2004 Northwest Airlines' initiative. Their purpose is not to suggest or organize individual or collective terms and conditions upon which firms would do business with suppliers. Their purpose is strictly to inform travel industry suppliers of the minimum level of professionalism desired by stakeholders in the travel distribution system with respect to extra contractual changes to distribution system practices.



-----



CONTACT Kevin Mitchell | 610.341.1850 | btcmitchell@comcast.net

 

[CarolA]

Hmm... it would appear that the folks on Flyertalk.com were right. Several of them thought that Hertz was floating this in hopes that the others would go along like the airlines do.

 

[safetymom]

I am glad to see that Hertz backed down. It wasn't the money but the way they did it.