Are you tempted to add your frequent flyer number when booking a rental car, hoping to rack up those valuable miles? It’s a common practice, but you might want to look closely at the fine print, especially with Budget Rent-a-car. You could be paying more than those miles are actually worth.
Recently, a Budget customer using Costco Travel for a car rental reservation noticed a discrepancy in pricing. While the base rate seemed in line with the Costco quote, the final charge was slightly higher. Upon closer inspection, a “Frequent Travel Program” fee of $14 was discovered within the “taxes and fees” breakdown. This fee was directly linked to adding an American Airlines frequent flyer number to the reservation on the Budget website.
In this instance, Budget was charging $1 per day to award 500 American Airlines AAdvantage miles. For a 14-day rental, this amounted to a $14 charge for earning frequent flyer miles. Considering that experts generally value American Airlines miles at around 1 to 1.5 cents each, the 500 miles earned daily were worth approximately $5 to $8 per 14-day rental. Effectively, the customer was paying $14 for a benefit worth significantly less.
Budget Rent-a-car openly states this surcharge in their fine print, labeling it as a “Frequent Traveler Program Surcharge or Excise Tax.” They explain that this fee is “collected by Budget to offset a portion of Budget’s annual cost of participation in frequent flyer programs.” This surcharge isn’t limited to American Airlines either. Budget applies similar fees for earning miles with various airline and hotel loyalty programs, including:
- Alaska Airlines
- Best Western Hotels & Resorts
- Choice Hotels
- Copa Airlines
- FRONTIER Airlines
- Hawaiian Airlines
- Hyatt Hotels
- JetBlue Airways
- La Quinta Inns & Suites
- Radisson Hotels
- Southwest Airlines
- Spirit Airlines
- Wyndham Hotels & Resorts
The daily surcharge varies, with some programs like American Airlines, Copa Airlines, JetBlue Airways, and Southwest Airlines incurring a higher $1.00 per day fee, while most others are at $0.75 per day.
So, is it worth paying extra for frequent traveler program car rental? The answer isn’t a straightforward yes or no. It heavily depends on the specific rental company, the fees they impose, the value you place on the frequent flyer miles, and the length of your rental. Before automatically adding your frequent flyer number, take a moment to check the rental terms and conditions for any such surcharges. Calculate the potential value of the miles you’ll earn against the fee you’ll be charged. In many cases, especially with Budget and similar fee structures, you might find that skipping the miles and saving on the surcharge is the more financially sensible choice. Always scrutinize the “taxes and fees” section of your car rental quote to avoid unexpected costs and ensure you’re getting the best value for your travel spending.
