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An extra $14 for “A Concession Fee Recovery” on an all-inclusive price? What’s with that?

October 13, 2009

laxI am Patient Zero for attention deficit disorder, which may explain why more than a few people with legitimate grievances e-mail me back after I’ve responded to their questions, asking me if I even bothered to read their inquiry. I did, but I was probably distracted by a screaming child in my home office or a kitten scurrying across my keyboard.

Which is why, when a non-answer happens to someone else, I feel a certain amount of solidarity. (Maybe we should start a support group?)

So Hotwire, please don’t feel singled out on this one. But you really should have read Emily Linendoll’s complaint more carefully.


Here’s what she said:

I booked a car through Hotwire, picking up and dropping off the car at LAX. While I received a great deal through Hotwire, I noticed that when I booked the car I paid $45 in “Tax Recovery Charges and Fees.” When I returned the car back to LAX, Hertz charged me an additional $14 for “A Concession Fee Recovery.”

I felt that this charge should have been covered in the fees that I paid when I booked the car through Hotwire. I explained this to Hertz and they said that I would have to go through Hotwire.

My call to a Hotwire customer representative was not helpful. After explaining what had happened he told me that he couldn’t tell me exactly what the $45 in “charges and fees” actually accounted for and referred to me your IRS form online, which I didn’t understand how to use exactly.

Therefore, I have two questions for you: 1) Why was I charged an additional $14 for “A Concession Fee Recovery” through Hertz when this should have been included in the charge I had prepaid with Hotwire? 2) What does the $45 “Tax Recovery Charges and Fees” for Hotwire include exactly?

As I mentioned, the customer representative was not able to give me this information over the phone when I called. I would appreciate an adjustment based on the prepaid rate that I paid when I booked the car.

Indeed, none of those charges should have shown up on Linendoll’s bill. Here’s what Hotwire promises on its site:

Hotwire Hot Rates include all applicable tax-recovery charges and fees — there are no hidden charges. For regular-rate rentals, Hotwire calculates estimated charges based on the agency’s published rates, taxes and fees. All rentals include unlimited mileage unless otherwise noted.

So here’s how it responded:

I understand you are inquiring about the tax recovery charges and fees for your car reservation. I can provide you with information on this matter.

The cost of your car-rental booking charged by Hotwire is the total of: the indicated rental rate multiplied by the number of days in your reservation, plus an additional amount for the tax-recovery charges and our service fees.

The tax-recovery charge is assessed to recover the amount we pay to the vendor in connection with your reservation, including sales and use, occupancy, excise tax, value added and other similar taxes etc., and the balance of the additional amount is a fee we charge in connection with the handling of your reservation. Our service fee varies based on the amount and location of your reservation.

The Concession Fee is a tax applied by Hertz for the reserving of the rental car at the airport.

If we can be of further assistance, please feel free to reply to this email or contact us directly at 1-866-HOTWIRE (468-9473). Thank you for choosing Hotwire.

Sincerely,

Ashley B.

Well, Ashley B., that doesn’t really answer the question now, does it?

I asked Hotwire to take a second look. Here’s what it came back with:

We were able to work through the issue you provided below. You were correct, our representative misunderstood Ms. Linendoll’s initial question, and thought she was looking for a clarification on our car rental fee policies. When in fact, she was questioning an additional charge that Hertz had assessed on her rental.

Customers who purchase a Hotwire Hot Rate on a car rental should not be charged any additional mandatory taxes and fees from the supplier. Customers prepay all taxes and fees when they purchase through Hotwire, and we pass those along to the supplier in advance. This is true across the board with the Hot Rates for all of our car supplier relationships. The additional “concession fee” was charged by the LAX Hertz branch in error.

We contacted Hertz on behalf of Ms Lindendoll, and Hotwire was able to apply a credit to her account.

People, stay vigilant! Car rental companies are trying to squeeze every last penny of revenue from their customers, even when they are contractually forbidden for doing so. And online travel agencies, when confronted with these misdeeds, are too quick to send out form responses.

(Site: FlyKonstantin/Flickr Creative Commons)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

6 comments

  • Koala

    I know someone who works for Hertz and he told me nowadays they sometimes keep cars in their fleet up to 50,000 miles. He also related that they often send cars off to auction to be sold and the cars end up coming back because there are no bidders (above a certain minimum price, I assume).

  • Paul

    Keep up the good work with the “Elliott Blog!” I can attest to car rental companies squeezing Lincoln out of the penny. Watch for those little extras when you book on line. The on-line and the actual costs are normally not the same. I question the supposedly local add-ons but don’t bother to hassle the problem at check in for a returned automobile. Can any of you out there correctly spell, “Nickel-And-Dimeing?”

  • Bill

    Paul, I guess you are not amongst those who can spell “Nickel and diming”.

    I’ve been lucky and have not, to my knowledge, experienced any discrepancies in car rental charges. I’ve been using Hertz.

  • Nobody

    Whadya gonna do flyer? Your plane’s gonna leave without ya and you gotta get thru long LAX lines at security. Ya know what that’ll cost you in dollars and delays? Much more than these piddlin fees. Ain’t ya heard of the downturn in the California economy? We need cash and so does the govment who ain’t gonna listen to your complaints, if they ain’t all furloughed already.

    Here lies the Travel Industry
    Planes, Autos, Hotels
    Death spiral into recession
    As people now handle by cell.
    RIP
    Nobody Was Faster

  • Mark Weston

    The concession recovery fee is simply a cost of business being blatantly passed on to the consumer. It is the equivalent of “rent”. The airport charges the car rental company a fee for operating out of its airport. So the concession recovery fee is what the car rental company must pay the airport because you rented a car from them. Imagine if you were to go to the grocery store they charged you a $20 “rent fee” to help them offset their monthly mortgage payment. You would be enraged. The rental car companies do this because they know you’ll pay it and won’t contest it.

  • Duke Nukem

    Let’s charge nobody a fee to post here (pun intended)!

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