Question: My car rental company has more than tripled the rate it charged me, and I don’t know what to do. I had prepaid $390 for the car through Alamo’s Web site. When my flight was canceled, I called Alamo to tell it I could not get the car until the next day. I was told that my reservation would be held for 24 hours.
I picked up the car the next day and returned it on time. When I dropped off the rental, a representative said the computer system was down. But when I got my bill the next month, there was an additional $1,116 charge because of the late pick up.
I believe this additional charge to be unfair and am requesting a refund. I believe Alamo should honor its promise of the prepaid amount as well as the representation that my reservation would be held for 24 hours. Can you help? — Alexandra Seldin, San Diego
Answer: So Alamo is charging you another $1,116 even though you rented one of its cars for one day less. Where’s the logic in that?
The answer: It’s airline logic. Air carriers have figured out a way to quadruple the price of a ticket depending on the time you bought it. So a “walk-up” fare purchased at the last minute can be hundreds, and even thousands, of dollars more expensive than an advance-purchase fare. But you’re getting the same seat.
You prepaid for your rental weeks in advance — kind of like an advance-purchase ticket. But when you didn’t show up as expected, the system reset your rate, charging you the more expensive “walk-up” rate.
The computer problems should have been a showstopper. When a representative says the system is down, you need to get a receipt, even if it’s handwritten. That way, if the company tries to double-dip, you can dispute the charge using the invoice as evidence that your bill was paid.
Even if you have assurances that you won’t be billed again, it’s important to monitor your credit card. A car rental company isn’t going to send you an e-mail letting you know that you’re being charged more. It’s just going to quietly take it off your credit card. As soon as you see a questionable charge on your card, mention it to the company or dispute it with your credit card company.
I think you would have won a credit card dispute, by the way. You would have needed to show the prepaid voucher as proof that you had already paid for the rental, and the credit card company should have sided with you.
I suggested you write a brief, polite e-mail to Alamo, asking it to reverse the charges. The response? A snippy note that said, “Any changes to the basis of the reservation makes the rate subject to change,” and adding, “We are disappointed that this policy is a source of dissatisfaction for you.” Alamo denied your request.
Like you, I was unhappy with the denials by phone and e-mail. So I contacted Alamo for you. It promptly refunded the $1,116 it should have never charged you in the first place.
(Photo: Steve and Sara/Flickr Creative Commons)
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{ 14 comments… read them below or add one }
This is getting old. Just another example of “THEM” ripping off the traveling public, stonewalling any attempt at common sense, and only “doing what’s right” when the nationally syndicated columnist gets involved. Is there any doubt in anyone’s mind that, if not for Chris’s intervention, these folks would have been just another victim of Alamo’s wonderful customer service?
Chris, is it any wonder that so many of your readers felt that British Airways should have been made to honor their “honest, fat-finger discount”?
The “real” issue here is the travel industries decision to charge different classes of customer’s differently for the same product. Leisure customers pay one price, business customer’s pay another.
For example, if the OP’s delay meant that he no longer has a Saturday night as part of his reservation the computer thinks he’s a business traveler and literally socks it to him.. A dubious practice at best.
Talk about buying a ticket on the right day – my spouse needs to go to LA late in the week of 10.20. Fares on Friday afternoon were $700+ RT. I told her to wait until Sat am to book it. She was all worried the fare would go up. We woke up and checked – RT fares on the same exact flights on the same exact days at 8a Sat am was $349. Friday afternoon the business travelers are firming up their trips while in the office – and the airlines know that. Likely only leisure travel gets booked alot on Sat am early . . . .
Thank you for reminding us to get receipts even if they are hand written. I would have trusted the employee who told me not to worry, and that would have been my first mistake.
Chris, your skills continue to be a source of wonder and relief. Thank goodness you are able to help people who companies regularly try to cheat. As is often remarked here, it is a shame that companies behave so poorly with no regard to morals, ethics, or customer service until you step in. I haven’t rented from Alamo in a while, and I don’t think I will start now.
This is pretty atrocious, but this is NOTHING like airline fares.
If you book a flight reservation and then want to change it to the next day at the last minute, you have taken space from the airline, and then want to use a DIFFERENT seat. Perhaps the airline could fill your seat at the last minute, and perhaps not.
In this case, you are renting the SAME car! You just drove it one day less. So less wear and tear on the car for the same cost. What a crock, but very different.
Moral: Don’t prepay for car rentals. You can book reservations at no cost.
This is Exhibit A as to why to avoid prepaid car rental or hotel reservations wherever possible, especially if the normal, refundable rate doesn’t have a penalty (usually they don’t). The savings usually aren’t worth the hassle if something goes wrong, unless you’re talking about a Priceline-type deal with a substantial discount.
Sadly, this is not an issue of prepaid vs. not prepaid, but of “advance purchase” vs. “walk-up rate.”
It used to be that when I called a car rental company to say I’d be late, they said “Fine. We’ll start the rental period when you get here.” Now they give me a new reservation number, with new rate.
This past Thursday this same thing happened to me (due to midwest flight delays) and the new rate was actually lower. But other times it has been higher.
Luck of the draw.
B.
I have not used Alamo in 29 years because of the tremendous pressure they put on me years ago in Orlando to purchase their additional insurance. I can see from this that I made a good decision. I do not give any company a second chance. They either get it right the first time, or never get another shot at it. Vote with your wallets, people!
Same here.. I have not used Alamo for 10+ years now, due to outrageous employee behavior by an agent in PHX. Granted all companies have their slip ups, but this is one company that I won’t voluntarily do business with ever.
I second the opinion that I avoid pre-paid reservations (except in limited situations). Generally you save less than 10% on hotel rates, and the risk just isn’t worth the savings (flight delays/cancellations). The only time I have booked a non-refundable rate is on the morning of reservation via mobile internet.
All I can say, is this is “yield management” at its finest. A so called invention by businesses to try and squeeze the most out of people’s wallets.
I learned the hard way when delayed airline connections caused me to miss my pre-arranged rental car reservation before midnight, forcing me into a higher rate (“walkup”) category. It was only a few bucks higher and I was going to be reimbursed for the trip anyhow, so it wasn’t worth my time and effort to protest. So now I make two reservations – one for the scheduled arrival time and one for the following day, cancelling the second day’s booking if my flight arrives on time. Sure, it may affect the rental car agencies’ yield management strategies, but they’re the ones whose policies have forced us to take these defensive measures.
why is it when we ask, beg, grovel, cry we get a flat out NO, sorry we can’t help you, but when a representative calls on our behalf, it’s “ok, we can help”. That’s so humiliating and irritating!
While I thankfully have not personally experienced this type of rate increase (yet?), I am curious why the car rental companies always claim that their “Computers are Down,” and thus are unable to offer a receipt whenever you return a car. I travel quite a bit and use different car companies and ALWAYS I am told that the “Computer is Down” when I try to turn the car in. It does not matter who I have rented from. Maybe car companies should spend some of their profit buying new computer systems that work!
I had the opposite situation with a rental from Enterprise in Saint Louis MO a couple years ago. Airport location. A single rental from Wed-Sun was $500 according to their web site. But a rental from Wed-Fri was $200, and Fri-Sun was $130. Same size car. So I booked the two reservations back-to-back.
When I picked up the car, the person at the desk found the first reservation. I pointed out the second one and said “I’m more than willing to bring the car back on Friday, with a full tank, and you can give me a different, freshly-washed car. Or you can let me have the same car until Sunday at the combined price of the two separate bookings.”
The first time this happened, the desk person had to get the manager to look at the computer; he scratched his head for 3 seconds and said “OK”. The second time this happened, two months later, the desk person (a different one) said “Oh, *you’re* the one who found that” and approved the change herself.
Reservation computer systems are weird. Seat management systems are weirder. Corner cases abound.
@ Jay: Good call! In the airline world, they’d yank your flying privileges and your frequent flyer miles.