These days, unless you want to pay big bucks, there are very few flexible airfares. And hotels are routinely moving their cancellation deadlines to 24 or 48 hours in advance to avoid billing.
But travelers renting cars have generally had a free ride as far as last minute changes. Or even just not showing up. (The only exceptions, some specialty cars, like convertibles and SUVs, especially during holiday periods.)
Even special international rates, however, and prepaid bookings with companies like Auto Europe, can generally be canceled with no penalty at any time.
But this may be about to change. Travel agents using the SABRE GDS (reservation system) computer got a memo today saying:
Avis Budget recently announced that North America car rental bookings made on or after December 15, 2009 may be subject to a fee if the customer doesn’t cancel at least 24 hours prior to scheduled pickup. As a result, a credit card may be required to guarantee bookings in certain rate types and at specific locations.
Most travel agency computers do already allow for a credit card rental car guarantee, this generally used for the aforementioned specialty/holiday cars. Apparently Avis “Wizard” and Budget “Fast Break” members will be exempt from needing to provide a credit card. (On the other hand, Avis and Budget already have those members’ credit cards, so they may or may not be exempt from any potential no-show fees.)
The memo goes on to say that Avis or Budget will advise the cancellation rules at the time of booking.
Of course, we all know how well travelers read the fine print.
In any case, like many travel industry changes, this no-show fee may be a trial balloon. It’s hard to imagine that Avis Budget (the two companies are now under joint ownership) will be out there on their own with the charge. So no doubt they will be watching the reaction from Hertz and National Alamo carefully.
In addition, if as word gets out, Avis Budget starts getting pieces of “Wizard” and “Fast Break” cards mailed back to them by annoyed customers, this could alter the company’s plans too.
The idea doesn’t seem that unreasonable on the surface, and could make life easier for many travelers if it cuts down on overbooking. There’s nothing like getting off a plane with a long drive ahead and being told “sorry, we don’t have any cars ready right now.”
On the other hand, many business trips change last minute. Travelers may be used to paying hotel no-show bills, but a car fee may push many in the direction of a taxi.
And while some of my clients can be flat-out inconsiderate about booking cars and deciding on a whim to do something else for transportation, there are some legitimate reasons for last-minute cancellations. Bad weather, a very delayed plane, or a shuttle that doesn’t arrive for 15 minutes all come to mind.
Finally, as most travel agents know from lost commissions, it is relatively common for someone to be told they don’t have a reservation at the counter. But then the rental car company still finds them a car at the same price. The only difference? No money paid to the booking agent.
Opinion is mixed as to whether this “missing reservation” behavior is deliberate or just incompetence, but with guaranteed reservations the potential for additional problems goes up exponentially. A travel agent may decide not to fight for a few dollar commission, but if a client gets an additional no-show charge for a car they rented, well, that’s a different story.
“Ancillary revenue” is becoming the hot new trend in the travel industry. So my guess is this change, even if it doesn’t go through now, is the wave of the future.
Fasten your seatbelts.
(Photo: blmurch/flickr.com/creative commons)
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I’m surprised this hasn’t happened before. Just another way to gouge business travelers. We pay all kinds of taxes via car rentals and never get the benefits so pile on the useless charges is the game plan from the state, local governments and now the provider of the car. I can see if your one that doesn’t cancel a reservation when it happens multiple times they could put in a charge. But from my travels sometimes it’s within 6 or 8 hours of when I need to make a change, Now I would be hit with a penalty. I already avoid hotels that have a 24 hour cancel policy if I know my schedule may change.
Avis already doesn’t get my business and never will, after a fiasco when they started implementing debit card policies a few years back. Dollar/Thrifty (and yes, Budget) now get my rentals.
I’ve had problems with very delayed flights causing issues with car availability and even switched at the last minute between local airports when I’ve had a flight cancellation, ie, PBI instead of FLL, or MDW instead of ORD, DCA instead of IAD, and BUR instead of LAX. It’s never been a problem up to now. How are they going to handle that with this new process?
This is too much nickel and dime stuff. As you stated above – there are times when your delayed and can’t get there as promised. There are flight cancellations due to weather. I am an Avis wizard member so I hope not to see any fees.
There is going to be a retraction on this. They are not going to be charging for no shows. Budget Group is trying to find out who sent out this false info to the media.
Neal wrote – “There is going to be a retraction on this.”
Yep – A retraction has already been sent out. But I doubt that 2 major Travel Agent GDS systems, Sabre and Apollo, would have notified their subscribers based media reports. They would only have notified their travel agent customers based on information received directly from Budget/Avis.