Comments for National Car Rental Nixes Visa Discount With 'Concession Recovery Fee'

National Car Rental Nixes Visa Discount With 'Concession Recovery Fee'

2009-10-12T17:00:12Z

An anonymous reader thought he would use his Visa Signature card to snag a $37 discount on his National car rental, but found that the rental company took back $36.99 of the savings with a "concession recovery fee."

He writes:

My wife and will soon take our vacation on Kauai, HI.

I was about to rent a Jeep from National car rental, and was pleased about the 37 dollar discount I enjoyed as a Visa Signature cardholder. That is, until I noticed that National clawed back this concession in the form of a "concession recovery fee." (See attached screenshot)

I'm not very pleased about this. And I'm sure Visa wouldn't be either. National has more of less Nerf-ed my usually delightful Visa Signature perks.

It sounds as though he went with a different company. With his story in mind, be sure to check out line item charges on bills to ensure you're not getting worked over with hidden fees.

Comment from jimv2000 on 2009-10-13

2009-10-13T20:13:43Z

@seth_lerman: Bah, all fees are BS. Just give me the damn price, or forget about it.

Comment from drjayphd on 2009-10-13

2009-10-13T05:22:38Z

@squinko - is pretending there's a star: "Recouping Airport Tax; For Utilizing Customer Kindness"?

Comment from drjayphd on 2009-10-13

2009-10-13T05:20:53Z

@wardawg: Then you'd get John Ensign railing about the gub'mint while simultaneously schtupping his staffers' wives. Really quite the acrobatic feat, I must say.

Comment from WVCouch on 2009-10-12

2009-10-13T03:52:15Z

@NeverLetMeDown:

Wait, wait, WAIT! Consumerist ed's, you are missing a HUGE story.

The Airport Charges a 10% rent fee to the car rental company. The airport doesn't give a rats behind how the car rental company pays it. They want 10% of the rental, and anything on the rental agreement that they think is theirs.

The rental car company moves it to 11.1% (10% X 10%) so that they can "Pass Through" the fee and not get into trouble with the airport.

They DON'T have to do that. They CHOOSE to do it, because the consumers won't notice or question it.

The key word is RECOVERY. They aren't recovering anything. They are TAKING it.

It should be Airport Concession TAKING Fee, ACTF!

Again, if it says RECOVERY, The airport hasn't MANDATEd the fee be paid by the customer, otherwise it would be an Airport Concession Fee. (Recovery is the key word, again.)

A huge, HUGE pet peeve of mine. I wish I could add concession fee recovery's to cover my overhead. Basically the rental companies get free rent by passing the rent through.

Comment from wardawg on 2009-10-12

2009-10-13T02:56:00Z

@TechnoDestructo: Because nobody eating at a chain restaurant in New York questions why the steak is a dollar more than at the same chain restaurant in Montana, and most restaurants don't list their menu prices online and let you reserve your meal before you get there.

If anything the fee is just mislabeled. It should be called "Airport Tax" or something similar.

Comment from TechnoDestructo on 2009-10-12

2009-10-13T01:56:49Z

@Coles_Law:

Gee, why don't restaurants start itemizing their lease costs on your check?

Comment from NeverLetMeDown on 2009-10-12

2009-10-13T00:52:19Z

@Aquasol:

Read the line item, it says it right there: Concession Recovery Fee: 11.11 Pct.

It's a percentage of the total cost. It just happens that if you take a number, discount it by 10%, and then add 11.11% tax, you get back to that number.

Comment from Kogenta on 2009-10-12

2009-10-13T00:49:54Z

@Aquasol: If you look at the screengrab, it's a flat percentage of 11.11% of the total.

Comment from Aquasol on 2009-10-12

2009-10-12T23:45:47Z

@YouDidWhatNow?: It IS an unusually specific number, though. Unless the airport loves absurdity to the extent that they'd make the fee $36.99.

Or the fee is a flat $37, and NCR is trying to be nice by eating $0.01?

Comment from Aaronjk on 2009-10-12

2009-10-12T22:44:08Z

The $37.00 discount is being given to all of us. I just got the same jeep and all. It seems to be the weekly rate discount. You didn't have a Visa discount on your order at all. In fact my page looks identical to the OP's!

Comment from stopNgoBeau on 2009-10-12

2009-10-12T22:42:35Z

@olderbudwizer: I agree with this on a national point, with all taxes. Why aren't sales taxes included in the price? Why aren't all the other state mandated fees included in the price?

The answer is an obvious one. No one forces them to do it, and when you have the choice to compare prices, you go with what seems cheaper, and then get pissed at the fees and taxes later. They keep the prices looking lower by not including the add-ons. The only time you don't see this is when there is no choice for competition. Concession stands are a great example of this.

Comment from stopNgoBeau on 2009-10-12

2009-10-12T22:39:43Z

@db4dbms: Nope.

Comment from stopNgoBeau on 2009-10-12

2009-10-12T22:39:11Z

@Osi: Thanks for correcting that. I know its rare when a corporation steps up to pay the sales tax on behalf of a customer, but companies pay their own fair share of income tax, payroll tax, and a butt load more.

Comment from stopNgoBeau on 2009-10-12

2009-10-12T22:36:09Z

@spazztastic: The rental rate is the same regardless of the National you use in that town. However, the concession fee is something apart from and outside the rental amount. Its not hidden. When the reservation is made, it clearly states it on the reservation page, along with the sales tax and any other applicable charges like prepaid gas, insurance, etc.

Comment from Hogan1 on 2009-10-12

2009-10-12T22:28:25Z

@Shadowman615:

Agreed, This is rather common in some places and the possibility of such fees are clearly stated. I would have liked to have seen more research on the part of Phil Villareal prior to posting this as it's really a non issue...

Comment from YouDidWhatNow? on 2009-10-12

2009-10-12T22:18:47Z

@Coles_Law:

Yes - the OP is confused on the term "concession" - he's thinking that National is getting back the $ they "conceeded" to Visa. That's not what they're doing.

They are recouping the fee the airport charges them for providing "concessions" - as a consessionaire at the airport.

National has to pay the airport for that fee every time you rent a car. So does anyone else renting cars at that airport. One can be sure that one way or another, that fee is going to be pushed to the consumer.

OP fail.

Comment from Shadowman615 on 2009-10-12

2009-10-12T21:45:12Z

Sorry, but huge gaff on the OP's part to shoot off a complaint to the consumerist without even finding the explanation. Why didn't he just click on the link to see an explanation of the charge? You can tell the charge is hyperlinked from the picture above, for cryin' out lound. I just tried to reserve a car at the same airport and got the same charge (diff dollar amount since it's a percentage).

Here's what it says:

At some locations, National has elected to impose "recovery fees" to recover or recoup all or a portion of its expenses related to a type of overhead. At certain airport locations where National is an on-airport concessionaire, National has elected to impose a charge, often referred to as a Concession Fee Recoupment or Concession Fee Recovery, to recover all or a portion of the concession fees which it is obligated to pay to the airport. Further, many airports impose a fee on revenue from off-airport rental car transactions (typically when the customer exits the airport using the off-airport company's shuttle bus) at locations where National is an off-airport concessionaire; National elects to impose a charge to recover all or a portion of this fee from customers. This fee, which varies by airport, will appear separately in the charges section of the rental agreement as Airport Fee, or the like.

Comment from Osi on 2009-10-12

2009-10-12T21:15:50Z

@Skaperen:

As a ceo of a corporation, I know for a fact that corporations DO pay taxes.

Nice trolling. lol.

Comment from Blueskylaw on 2009-10-12

2009-10-12T21:13:30Z

Pretty soon the breaking down of charges to make your base rate look low will reach ridiculous proportions.

Toilet flush recovery fee to help recoup water costs when our sheeple use our restrooms.

Comment from olderbudwizer on 2009-10-12

2009-10-12T20:52:11Z

Why can't they just raise the daily rate and be honest about their pricing? Same for the other guys too. It costs what it costs, so ditch the 'low daily rate + junk fees' approach and try treating your customers and potential customers to a little bit of honest disclosure and spice it up with some excellent customer service.

Comment from Trick on 2009-10-12

2009-10-12T20:48:08Z

I rented a Jeep from National in Kauai three months ago when we were in Hawaii... it was about $100 a day with taxes and no complaints there because that was the amount we were quoted.

It was the actual Jeep Wrangler that sucked. Ours had 38,000+ hard miles on it and it was a hard-top! We could turn it into a targa but not a convertible. I was given a free tank of gas for that but it sucked we could enjoy the top down like the other family in our group did...

The 2nd Wrangler had 18,000+ miles and was dirty...

Comment from RichasB on 2009-10-12

2009-10-12T20:35:48Z

"Concession recovery fee"?? WTF? That's like charging people for not spending enough (didn't BoA do this already?).

I always argue those stupid fees. When I went to Goodyear, they tried to add a $5.99 dollar fee for "shop materials". I made them take it off, I'm not paying for your business expenses. What's next, are they gonna charge me for their breakfast and gas to work?

Comment from NeverLetMeDown on 2009-10-12

2009-10-12T20:03:51Z

@Evil Otto - sleep deprived ftl:

Lots of places put high taxes on rental cars, since the people who pay them (visitors) don't get to vote in the place where the taxes are imposed.

Comment from db4dbms on 2009-10-12

2009-10-12T19:53:12Z

I assume "concession recovery fee" is actually "recession recovery fee"

Comment from sharkzfanz on 2009-10-12

2009-10-12T19:52:34Z

Consumerist really should to their homework before posting posts that have no reason to be posted...

THIS IS DIRECT FROM NATIONAL CAR Rental's website!!!

Concession Recoupment Fees

At some locations, National has elected to impose "recovery fees" to recover or recoup all or a portion of its expenses related to a type of overhead. At certain airport locations where National is an on-airport concessionaire, National has elected to impose a charge, often referred to as a Concession Fee Recoupment or Concession Fee Recovery, to recover all or a portion of the concession fees which it is obligated to pay to the airport. Further, many airports impose a fee on revenue from off-airport rental car transactions (typically when the customer exits the airport using the off-airport company's shuttle bus) at locations where National is an off-airport concessionaire; National elects to impose a charge to recover all or a portion of this fee from customers. This fee, which varies by airport, will appear separately in the charges section of the rental agreement as Airport Fee, or the like.

Comment from coffeeculture on 2009-10-12

2009-10-12T19:42:38Z

@sickofthis: In my experience, off-airport sites have been more expensive despite not having the airport fees.

It's probably situational, so check both just to be sure!

Comment from Evil Otto - sleep deprived ftl on 2009-10-12

2009-10-12T19:39:34Z

@NeverLetMeDown: Cue anti-tax whiners in 3.. 2..

Comment from Liam Kinkaid on 2009-10-12

2009-10-12T19:37:48Z

@nybiker: I think you're right. See, there's probably a better way of explaining it, even when I don't bungle it up!

Comment from DailyRich on 2009-10-12

2009-10-12T19:36:05Z

A lot of rental locations at hotels have this fee as well.

Comment from RedwoodFlyer on 2009-10-12

2009-10-12T19:28:01Z

@bengarland: For once, I think the Consumerist bashing is merited.

Comment from nybiker on 2009-10-12

2009-10-12T18:56:26Z

@Skaperen: And hopefully pass them on to appropriate govt agency that imposed it.

Comment from nybiker on 2009-10-12

2009-10-12T18:55:04Z

@Liam Kinkaid: I think you got the A & B backwards as to who is more expensive in your example. Putting the cost into the rental price makes it more expensive, so A is higher and B is cheaper since they didn't put it into the price.

Comment from Skaperen on 2009-10-12

2009-10-12T18:50:47Z

Remember ... corporations NEVER pay taxes ... they just COLLECT them from their customers.

Comment from wcnghj on 2009-10-12

2009-10-12T18:50:33Z

$37 discount is nothing.

Google for .... name of rental company coupon code.

You'll find some pretty sweet ones.

And BTW, the concession fee is normal.

Comment from lotussix on 2009-10-12

2009-10-12T18:36:06Z

@Liam Kinkaid: this is a tax or fee, which is regulated by local jurisdiction. these do not need to be disclosed in the rate.

i work for a hotel company and we always say "taxes and fees" because some states will charge development fees or tourist fees.

Comment from Liam Kinkaid on 2009-10-12

2009-10-12T18:28:49Z

@spazztastic: I think having the concession fee as a separate line item "hides" the true cost of the rental because many car rental search/booking engines don't count that as part of the daily rate. If Company A puts the cost into the rental price and Company B doesn't, Company B will be seen as more expensive than Company A. I think it's kinda like how airlines advertise and publish one fare, but then you have all the taxes/security fees/etc. that raise the cost.

There's probably a clearer way of explaining it, but I'm just no good at it.

Comment from spazztastic on 2009-10-12

2009-10-12T18:16:50Z

@zerj: You mean 'Don't want to hide the cost by rolling it into the price', I assume?

Comment from squinko on 2009-10-12

2009-10-12T18:07:11Z

@tailstoo: Even if it's the company being taxed, they aren't taxing the customer, so it's a fee. They could call it "Recouping Airport Tax Fee" maybe...

Comment from NeverLetMeDown on 2009-10-12

2009-10-12T17:46:29Z

@tailstoo:

It may be that, technically, what they're being charged by the owner of the airport is a "fee," not a "tax," so they can't call the recovery of it a "tax" recovery.

Comment from Kurt on 2009-10-12

2009-10-12T17:41:38Z

I second all of the above comments. Come on guys, fact check please.

Also, how is this a hidden fee? Has it not been fully disclosed? Seems that National is doing things right here.

Comment from tailstoo on 2009-10-12

2009-10-12T17:41:32Z

So maybe National should call it something else - Consumers are seeing more and more charges called "fees" by businesses, and there's a big backlash coming. If this really is a tax, then call it such.

Comment from bengarland on 2009-10-12

2009-10-12T17:31:51Z

@NeverLetMeDown:

Again, the Consumerist posts nonsense without checking the facts. Seriously, with them now being owned by Consumer Reports, shouldn't they be a bit more responsible?

Comment from sickofthis on 2009-10-12

2009-10-12T17:26:05Z

It pays to rent at a non-airport location whenever possible. All airport locations get dinged with this charge.

Comment from NeverLetMeDown on 2009-10-12

2009-10-12T17:10:17Z

National's just passing on the taxes that the local airport charges, as every car rental company does everywhere.

Comment from zerj on 2009-10-12

2009-10-12T17:10:14Z

Isn't the Concession Recovery Fee, due to the rental car happening to be at the airport and not related to your discount? If I create a national reservation w/o a discount I still get this adder.

Certainly it is annoying but it isn't because of your discount, its because they have high rent at the airport and want to hide that cost instead of rolling that into the price.

Comment from NeverLetMeDown on 2009-10-12

2009-10-12T17:09:35Z

Blame the gov't that controls Lihue Airport - there's an 11.11% tax on car rentals there.

Car rental base price is $369.95. Less 10% discount ($37.00) is $332.95. 11.11% of $332.95 is $36.99.

Comment from Coles_Law on 2009-10-12

2009-10-12T17:06:13Z

I think the fee amount is just coincidental. From the National Car Rental Website:

At certain airport locations where National is an on-airport concessionaire, National has elected to impose a charge, often referred to as a Concession Fee Recoupment or Concession Fee Recovery, to recover all or a portion of the concession fees which it is obligated to pay to the airport.

I think the fee would be there regardless of the Visa discount.

Comment from seth_lerman on 2009-10-12

2009-10-12T17:05:28Z

Doesn't really seem to have much to do with his Visa Sig card. That fee is probably there regardless, so without the discount the fee would have been a tad higher at $41.10.

So he is still saving $37 and change in regards to Visa Sig card vs. other card.

Not saying that I would like what National is doing either, more pointing out the mis-titling of the article...