Travelocity's Third National Rental Car Study Reveals Continued Hike in Taxes at Airport Locations
December 12 2006 - 6:00AM
Business Wire
Continuing a series of studies issued in July, 2003 and March, 2005
that revealed large differences between car rental companies� base
rates and the total price including taxes that consumers paid,
Travelocity�s research on car rental taxes for 2006/2007 reveals
that rental car sticker shock has risen again. The new study from
Travelocity� shows that the average taxes added to base rates for
car rentals at major U.S. airports has increased from 25.8 percent
in March, 2005 to 28.04 percent in December, 2006. These taxes,
such as �facility charges,� are imposed by local and state
governments rather than the rental car companies. �With car rental
excise taxes on the rise in cities, counties and states across the
country, it�s important that government officials, businesses and
elected officials understand the negative impact these taxes can
have on local economies,� said National Business Travel Assn.
Executive Director & COO, Bill Connors, CTC. �NBTA research
shows that the majority of companies rent more cars in their local
markets than in all other locations combined. In other words, in
locations with the highest car rental tax rates, local businesses
are taking a big hit on the bottom line.� Travelocity�s 2006/2007
research findings showed such taxes to be substantially lower at
neighborhood car rental locations than airport locations, averaging
only 14.9 percent of the final rental price. �Car rentals are still
a very affordable option for travelers, but consumers are paying a
substantial amount in local taxes and fees,� said Alex Goldman,
director car and rail for Travelocity. �We want to reiterate to our
customers that it�s important to research the price of the rental
inclusive of all taxes to prevent surprises that could impact a
tight travel budget. Customers have access to the final price on
Travelocity with our TotalPriceSM display and can easily see the
differences between airport and neighborhood car rental rates and
taxes.� Among the study�s key findings: Kansas City Shows Most
Sticker Shock; San Diego, Orange County and Palm Springs Tie for
the Least: Kansas City tops the list this year with a 63 percent
average difference in the price between the base rates and the
total price including taxes that consumers paid at the airport.
Three cities in California tied for the least sticker shock � San
Diego, Orange County and Palm Springs all came in at 7.8 percent
average. Seven of the top 10 cities with the least amount of
sticker shock were in California. 10 Airports in 2006 with HIGHEST
Percentage Difference in Price Between Daily Base Rate and Total
Amount Due at Airport Locations (averages include the top 100 U.S.
airports): Airport Average Percentage Jump in Price 1. Kansas City
63.0% 2. Seattle 54.4% 3. Anchorage 54.4% 4. Atlanta 53.5% 5.
Dallas/Fort Worth 52.1% 6. Phoenix 47.9% 7. Austin Bergstrom 46.2%
8. Albuquerque 44.6% 9. Las Vegas 44.2% 10. Houston - Bush 43.6% 10
Airports in 2006 with LOWEST Percentage Difference in Price Between
Daily Base Rate and the Total Amount Due at Airport Locations
(includes top 100 U.S. airports): Airport Average Percentage Jump
in Price 1. San Diego 7.8% 2. Orange County 7.8% 3. Palm Springs
7.8% 4. Sacramento 7.9% 5. Los Angeles (LAX) 8.2% 6. Long Beach
8.3% 7. Burbank/Glendale/Pasadena 8.3% 8. Honolulu 15.1% 9. San
Jose 17.0% 10. Burlington, VT 17.4% Neighborhood Rental Locations
Offer Less Sticker Shock: In addition to the convenience of
accessing a rental car close to home or work, taxes at neighborhood
locations are usually lower than or equal to airport locations
nationwide. 10 Cities with HIGHEST Jump in Price Between Daily Base
Rate and Total Amount Due at Neighborhood Location (cities were
from top 100 US airports): City Average Percentage Jump in Price 1.
Jackson, MS 34.7% 2. Columbia, SC 27.5% 3. Kansas City 24.7% 4.
Palm Springs 24.6% 5. Reno/Tahoe 24.2% 6. Las Vegas 24.0% 7. San
Antonio 23.1% 8. Houston 22.9% 9. Memphis 22.7% 10. Minneapolis
21.6% 10 Cities with LOWEST Percentage Difference in Price Between
Daily Base Rate and Total Amount Due at Neighborhood Locations
(from top 100 US Airports): City Average Percentage Jump in Price
1. Burlington, VT 7.0% 2. Cincinnati 7.0% 3. Dayton 7.6% 4.
Sacramento 7.7% 5. Orange County 7.8% 6. San Diego 7.9% 7. Fresno
8.0% 8. Los Angeles 8.3% 9. Long Beach 8.3% 10. San Jose 8.3%
Greatest Difference in Taxes at Airports vs. Neighborhood
Locations: The 2006/2007 study discovered that taxes, on the whole,
are lower at neighborhood locations. In Atlanta, for instance,
consumers can save an average of 39.2 percent on taxes by renting
at a neighborhood car rental location. 10 Cities with HIGHEST
Percentage Difference in Daily Base Rate and Total Price at Airport
vs. Neighborhood Locations (averages include the top 100 U.S.
airports): Airport Average Percentage Difference 1. Atlanta 39.2%
(53.5% on-airport vs. 14.4% neighborhood) 2. Kansas City 38.3%
(63.0% vs. 24.7%) 3. Seattle 35.3% (54.4% vs. 19.1%) 4. Anchorage
33.2% (54.4% vs. 21.2%) 5. Dallas/Fort Worth 32.1% (52.1% vs.
20.0%) 6. Cincinnati 29.1% (36.1% vs. 7.0%) 7. Austin Bergstrom
27.7% (46.2% vs. 18.5%) 8. Albuquerque 25.2% (44.6% vs. 19.4%) 9.
Harrisburg, PA 24.9% (37.7% vs. 12.8%) 10. Tulsa, OK 22.6% (37.1%
vs. 14.5%) Travelocity expanded its neighborhood rental options on
its site in 2004, providing car rental shoppers with more than
20,000 airport and neighborhood locations across the world. A
complete analysis of Travelocity�s findings at each of the 100
airports researched can be found at
www.travelocity.com/rentalcarstudy. About the Travelocity Car Rate
Study The Travelocity study was fielded in November 2006. Three
lowest-priced, full-size cars and three lowest-priced, compact cars
for a three-day period (December 7-10, 2006) were priced on
Travelocity at all airports and nearby neighborhood rental car
locations. A comparison was made to determine a weighted average
difference. The airport list was taken from the top 100 airports in
the United States in terms of passengers, according to Airports
Council International. About Travelocity Travelocity is committed
to being the traveler's champion -- before, during and after the
trip � and is the only online travel company that guarantees not
just the price, but the entire travel experience � see
www.travelocity.com/guarantee for details. This customer-driven
focus, backed by 24/7 live phone support, great prices and powerful
shopping technology has made Travelocity the sixth largest travel
agency -- booking $7.4 billion in travel worldwide in 2005. Based
in Southlake, Texas, Travelocity also owns and operates Travelocity
BusinessSM for corporate travelers, lastminute.com, a leader in
European online travel and ZUJI, a leader in Asia-Pacific online
travel. Travelocity is owned by Sabre Holdings Corporation
(NYSE:TSG), a world leader in travel commerce.
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