Lois Larson
An airport concession fee is a charge collected by a rental company from a renter that is the renter's proportionate share of the amount paid by the rental company to the airport authority. This fee is typically levied by companies that have a physical presence at the airport rental center or provide shuttle services to and from the airport. In some cases, the fee is used to recoup the cost of maintaining the concession and shuttle services, while in other cases, it is paid directly to the local airport authority. The fee can range from a few dollars to $10 or more per day and is often referred to as a facility charge or concession recovery fee.
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What You'll Learn
- Airport concession fees are charged by rental companies to renters
- They are the renter's share of the amount paid by the rental company to the airport
- Concession fees can be charged by off-airport rental companies
- They are charged to recoup the cost of maintaining a presence at the airport
- Concession fees can be waived or not applied in certain circumstances
Airport concession fees are charged by rental companies to renters
These fees can vary depending on the airport and rental company, but they typically range from a few dollars to $10 or more per day. For example, at Los Angeles International Airport (LAX), renters may be charged a mandatory customer facility charge of $9 per day, up to a maximum of $45 per rental. In addition, an airport concession recovery fee of 11.11% may be applied, allowing the rental company to retain a portion of the revenue while also paying the airport's cut.
Rental companies located off-site from the airport may also charge airport concession fees if they have a presence at the airport, such as a kiosk or courtesy phone. In some cases, these off-site companies may be required to charge the same concession fees as on-site companies to prevent customer poaching. However, renting from an off-site location can sometimes result in lower overall costs, as renters can avoid concession and facility fees charged by the airport.
It is important for renters to be aware of these additional fees when renting a car at or near an airport. While some fees may be unavoidable, others can be minimized or avoided by renting from off-site locations or being mindful of add-ons and extra charges. Understanding the breakdown of fees can help renters make more informed decisions and potentially save money on their rental car expenses.
Additionally, renters should be cautious of other fees that rental companies may charge, such as fees for additional drivers, satellite radio services, toll transponders, and refueling charges. These fees can quickly add up, and it is important to carefully review the rental policy to understand all the associated costs. By being aware of these charges and asking questions, renters can make more informed choices and potentially reduce their overall rental expenses.
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They are the renter's share of the amount paid by the rental company to the airport
An airport concession fee is a charge collected by a rental company from a renter, which represents the renter's share of the amount paid by the rental company to the airport. This fee is typically applied when a rental company has a presence at an airport rental centre or provides shuttle services to and from the airport. The fee can range from a few dollars to $10 or more per day, and it is often labelled as an "airport concession fee" or "concession recovery fee" on rental invoices.
It's important to note that even rental companies located off-site from the airport may charge an airport concession fee if they have certain facilities or services at the airport, such as a kiosk, courtesy phone, or shuttle service. In some cases, rental companies located within a certain distance from the airport, usually within 5 miles, are required to pay the concession fee unless the renter lives in a nearby zip code.
The airport concession fee is essentially a way for rental companies to recoup the costs associated with maintaining a presence at the airport or providing airport-related services. These costs may include rent for office or counter space within the airport, fees for utilities and other operational expenses, as well as any charges associated with providing shuttle services between the rental location and the airport.
While the fee is typically paid by the renter, it is important to understand that it is not an arbitrary charge. The amount charged as an airport concession fee is usually proportional to the costs incurred by the rental company for their operations at or related to the airport. These costs can be significant, and the fee helps rental companies offset these expenses.
It is worth noting that airport concession fees can vary depending on the rental company, the location, and other factors. Some companies may choose to waive or not apply the fee in certain situations, especially if the renter picks up the car from an off-site location or is not utilising the airport shuttle service. Additionally, renters can sometimes avoid paying the airport concession fee by renting from a location that is not associated with the airport, although this may not always be a convenient option.
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Concession fees can be charged by off-airport rental companies
An airport concession fee is a fee charged by some airports to rental car companies that operate on airport premises. These fees are typically paid by the rental car companies to the airport authorities. However, in certain cases, off-airport rental companies may also charge their customers an airport concession fee. This typically occurs when the off-airport rental company provides a shuttle service to and from the airport or has a kiosk, courtesy phone, or similar amenities at the airport.
For example, in the case of Enterprise OAK, both the on-airport and off-airport locations charged airport-related fees. The on-airport location levied a $10 per rental charge labelled as a "Facility Charge", while the off-airport location charged an "Airport Concession" fee amounting to 11.1% of the total rental cost.
Some customers have expressed frustration with being charged an airport concession fee by off-airport rental companies, especially when they did not utilise the company's airport amenities. However, it is important to note that these companies may have agreements with airport authorities to charge these fees to prevent customers from bypassing on-airport rental companies that typically charge higher fees.
To avoid unexpected charges, it is advisable to carefully review the terms and conditions of your rental agreement and clarify any potential extra fees before finalising your reservation. Additionally, consider renting from a location further away from the airport, as this may help you avoid airport-related fees altogether.
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They are charged to recoup the cost of maintaining a presence at the airport
An airport concession fee is a charge collected by a rental company from a renter. In the context of rental car companies, this fee is often used to recoup the cost of maintaining a presence at the airport. This can include the cost of having a kiosk, a courtesy phone, or providing shuttle services to and from the airport.
For example, a rental car company with a facility at an airport rental center may charge an airport concession fee to cover the costs of renting that space. This fee can vary depending on the company and the location, and it may be a flat rate or a percentage of the total rental cost. In some cases, even rental companies located off-site may be required to charge an airport concession fee if they have certain amenities or services at the airport, such as a kiosk or a phone.
The airport concession fee is typically included in the final invoice presented to the renter. It is important for renters to be aware of these additional fees, as they can significantly increase the overall cost of renting a car. While some companies may waive or not always apply the concession fee, it is generally a cost that renters should expect to incur when renting a car from an airport location.
Additionally, it is worth noting that airport concession fees are not unique to rental car companies. Other commercial entities operating at airports, such as restaurants or retail stores, may also be subject to concession fees as part of their agreement to operate within the airport premises. These fees can vary based on the specific terms of their contract and the services provided.
Overall, airport concession fees are an essential aspect of the airport business model, allowing rental companies and other commercial entities to recoup the costs associated with maintaining a presence at the airport. While these fees may be necessary for the companies involved, it is important for consumers to be aware of them to make informed choices and avoid unexpected charges.
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Concession fees can be waived or not applied in certain circumstances
An airport concession fee is a fee that is sometimes charged by companies with a presence at an airport, such as a rental car company. These fees are typically levied to recoup the costs of maintaining a presence at the airport, such as a kiosk or a shuttle bus service.
In the case of rental car companies, concession fees may be waived or not applied if the renter lives within a certain distance of the airport. For example, a rental car company may waive the concession fee for renters who live within the same or an adjacent zip code. Additionally, some companies may waive the fee as a courtesy to the customer, as seen in an example where a manager at a rental car company waived the concession fee for a customer who did not "fly-in".
It is important to note that the application and waiver of concession fees can vary depending on the airport, the company, and the specific circumstances. In some cases, the airport authority may require off-site companies to charge the same concession fee as on-site companies to prevent customer poaching. Ultimately, the decision to waive or not apply concession fees may depend on a variety of factors and may be determined on a case-by-case basis.
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Frequently asked questions
An airport concession fee is a charge collected by a rental company from a renter.
Rental companies charge an airport concession fee to recoup the cost of maintaining their concession at the airport.
Yes, if the rental company has a facility at the airport rental center and/or provides shuttle bus service to/from the airport, they may charge an airport concession fee.
The airport concession fee can range from a few dollars to $10 or more a day.
You can avoid paying an airport concession fee by renting a car from a company that does not have a presence at the airport, such as an office a few miles away from the airport.
