Frequent Flyer Surcharge per Car Rental Day - Timeshare Users Group Online Community Forums

Dollie · November 6, 2007, 09:23 AM

Just received an email from Thrifty this morning about a special. Since we are renting from them in Dec, I tried the special and was able to save $68 a week on our car rental. That was nice. In reading the small print on the reservation I noticed the following two points:

A Frequent Flyer Tax Recovery Surcharge of .06 per Rental day may apply when frequent flyer miles are requested at time of rental from American and Northwest.
A Frequent Flyer Surcharge of .50/day up to a maximum of of 2.00 per rental may apply when frequent flyer miles are requested from America West, Alaska Air, Continental, Delta, United and US Airways.

This is the first time I have noticed this additional charge. Has anyone seen this with other car rentals? It doesn't amount to too much money added on to the rental but it does say that these frequent flyer miles are not free.

Dave M · November 6, 2007, 09:37 AM

In approximately 1998, a federal excise tax on the sale of frequent flyer miles was enacted. The tax is 7.5% of the price that the airline's partners pay the airline. About a year later, some of those partners, particularly rental car companies, started charging one of the two charges you have quoted, depending on the airline.

The fee is small enough so that the value of the miles still greatly exceeds the amount of the fee, making it worthwhile to sign up for the miles when renting a car.

The car rental websites and long-form rental agreements have disclosed the charge ever since it was instituted. If you look back at past rental car receipts where you got miles, you'll see the charge identified and stated separately.

Carolinian · November 7, 2007, 10:46 AM

Car rental used to be worthwhile for air miles. Then the rental companies cut the number of miles. Then they added this stupid tax. On top of that, if you rent overseas (as I usually do) you usually have to go through a whole lot of hassle to even get the miles.

Now the only time I bother is if I am renting in the US and need to extend the miles in one of the programs I don't use often.

JeffW · November 7, 2007, 11:57 AM

Northwest used to be free (at least on National). That was one reason I selected them. Even at 6c/day, it's probably worth the expense. However, unless you are getting a lot of miles, the other airlines, at $0.50 to $2.00 / day, are probably not worth the cost.

Jeff

November 6, 2007, 09:23 AM	#1
Dollie TUG Member BBS Reg. Date: Jun 6, 05 Location: Fayston, VT Posts: 160 Resorts: Point at Po`ipu , Kaua`i	Frequent Flyer Surcharge per Car Rental Day Just received an email from Thrifty this morning about a special. Since we are renting from them in Dec, I tried the special and was able to save $68 a week on our car rental. That was nice. In reading the small print on the reservation I noticed the following two points: A Frequent Flyer Tax Recovery Surcharge of .06 per Rental day may apply when frequent flyer miles are requested at time of rental from American and Northwest. A Frequent Flyer Surcharge of .50/day up to a maximum of of 2.00 per rental may apply when frequent flyer miles are requested from America West, Alaska Air, Continental, Delta, United and US Airways. This is the first time I have noticed this additional charge. Has anyone seen this with other car rentals? It doesn't amount to too much money added on to the rental but it does say that these frequent flyer miles are not free. __________________ *Dollie*

November 7, 2007, 10:46 AM	#3
Carolinian Guest BBS Reg. Date: Jun 6, 05 Location: eastern Europe Posts: 5,562	Car rental used to be worthwhile for air miles. Then the rental companies cut the number of miles. Then they added this stupid tax. On top of that, if you rent overseas (as I usually do) you usually have to go through a whole lot of hassle to even get the miles. Now the only time I bother is if I am renting in the US and need to extend the miles in one of the programs I don't use often. __________________ Driving Every Loyal Traveller Away - the new Delta

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November 6, 2007, 09:37 AM	#2
Dave M Moderator TUG Lifetime Member BBS Reg. Date: Jun 16, 04 Location: Sun City Hilton Head, SC Posts: 11,351	In approximately 1998, a federal excise tax on the sale of frequent flyer miles was enacted. The tax is 7.5% of the price that the airline's partners pay the airline. About a year later, some of those partners, particularly rental car companies, started charging one of the two charges you have quoted, depending on the airline. The fee is small enough so that the value of the miles still greatly exceeds the amount of the fee, making it worthwhile to sign up for the miles when renting a car. The car rental websites and long-form rental agreements have disclosed the charge ever since it was instituted. If you look back at past rental car receipts where you got miles, you'll see the charge identified and stated separately.

November 7, 2007, 11:57 AM	#4
JeffW TUG Member BBS Reg. Date: Jun 6, 05 Location: Philadelphia Posts: 1,049	Northwest used to be free (at least on National). That was one reason I selected them. Even at 6c/day, it's probably worth the expense. However, unless you are getting a lot of miles, the other airlines, at $0.50 to $2.00 / day, are probably not worth the cost. Jeff