Travel agents and car rental users - clearing up the grey areas in car rental

Following several workshops with SAVRALA members, travel agents and car rental customers, it is evident that there are a number of grey areas or misunderstandings about certain aspects of the car rental experience which are not fully understood by renters and/or their booking agents.

One of the association’s initiatives, in conjunction with ASATA, is to sort out the grey areas in order to make the car rental process an easier and less complicated process. By doing this, we hope to reduce billing errors, invoice queries and make the experience a simpler process.

Some of the areas concerned include:

• 24 Hour Billing Period
  It is often not realized that daily charges for car rental rates run for 24 hours from the time the vehicle was rented. Therefore, by taking the vehicle at 10h00 on a Monday and returning it at 12h30 the following Wednesday, equates to a three day rental and not two. This misunderstanding often gives rise to invoice queries.
   
• Overdue Rentals
  Often both renter and travel agent do not realize that a vehicle which is not returned on the date indicated on the rental agreement is regarded as “overdue” for return. This means that any waiver cover taken will be negated in the event of an accident and/or theft occurring during the “overdue” period.
  
  When reserving a vehicle, always book for the maximum period you or your client may require the vehicle for. If the vehicle is returned early, you pay only for the period used and not for the period booked. This will alleviate the burden of extending rentals beyond the initial return date or having to get additional orders, travel vouchers and any other authorizations required.
   
• Additional Drivers
  Did you know that should a “non-listed” person drive a rental vehicle, in the event of damage and/or theft to the vehicle, this will negate any waiver cover taken? Most car rental companies charge an “Additional Drivers Fee” which is not an insurance cover, as it is often mistaken to be. Only the renter and other listed “Additional Drivers” may drive a rented vehicle. Do not even allow the complimentary hotel valet parking services to park your rented vehicle for you.
   
• Drivers Licence
  It is a legal requirement for every driver to carry his or her driver’s licence on their person whenever behind the steering wheel of a vehicle. The risks that car rental operators and their customers are exposed to are high and as with all countries throughout Europe and the North America, your car rental operator will generally require presentation of one’s driver’s licence at the time of every rental.
   
• Damage and Theft Waivers
  Rental companies are self-insured and require that their vehicles be returned to them in the same condition as when rented, failing which the full damage/loss expenses incurred are passed on to the renter. This is terms the renter’s “Responsibility”.
  
  In order to reduce the “responsibility”, car rental operators offer a selection of “Waivers”, often (and incorrectly) referred to as “insurances”. These optional waiver charges - if accepted and signed for - will reduce the renter’s responsibility for the expenses incurred as a result of accident damage and/or theft to a significantly lower amount. This is often referred to as the excess or non-waivable charge. Waivers can be taken for Accident Damage, Theft / Loss or both.
  
  Within both Damage and Theft Waiver options, there are generally two tiers of cover available. It is recommended that at time of rental, that one checks with the rental staff member about the waiver options and resultant charges and cover available.
   
• Travel Agent Vouchers
  When car rental is billed through a travel agent, there are several options regarding the payment available to the Travel Agent. The options listed below are as reflected in the Memorandum of Understanding between ASATA and SAVRALA.
  
  2.1 Referral Vouchers: where the client settles his/her bill directly with the car rental operator (credit risk to the car rental company). These vouchers are issued by the travel agent, where the renter does not have full credit/account facilities with the travel agency. However, through the issuing of the Referral Voucher, the travel agency receives a percentage of revenue commission without incurring any risk of debt collection. In these instances, the car rental company will require a formal method of payment from the renter eg credit card etc.
  
  2.2 Full Credit (Bill-Back): where full rental charges (including excesses) are billed to the travel agent. These should only be issued to those clients who have an approved account and credit facilities with the travel agent.
  
  Risk: With the issuing of Full Credit (Bill-back) vouchers, if the travel agent declines the car rental waivers and in the event of Damage/Theft, the car rental company will expect to collect the resultant costs (up to the value of the vehicle) from the travel agent, subject to conditions of the waivers indicated on the voucher being applied by the car rental company.
  
  When issuing a Full Credit / Bill Back voucher, it is the travel agent’s responsibility to ensure that the renter or company responsible for the rental charges is aware of the risks of these possible charges and as such, the travel agent undertakes to pay the car rental company the full applicable responsibility or vehicle value, in the event of damage and/or theft.
  
  The travel agent, in turn, will pass these charges on to the customer. It is understood by the car rental operators that if the instruction by the travel agent was to include waivers and these were declined by the client, that the car rental operator will – in the event of damage / theft – claim these directly from the customer. This follows that the car rental operators may request an additional form of payment from the customer. The travel agent will be liable for the full rental charges, regardless of the period stipulated on the Full Credit Voucher.
  
  2.3 Corporate voucher: where full rental charges (including excesses) are billed back to the corporate customer/renter by the car rental company. These vouchers are used when the corporate client has a direct account with the car rental company. The issuing of these Car Rental Company Account Vouchers by a travel agent puts the responsibility for collecting the debt on the car rental company. The travel agent receives a pre-negotiated referral commission on these rentals and is responsible for the safekeeping of such vouchers under their control.
  
  Risk: In the event of proven negligence or the fraudulent issuing of Company Account vouchers by the travel agency, this will lead to the travel agency being held responsible for resultant loss damage and costs.
  
  2.4 Limited Value (Net Rate) Vouchers: these apply in the event of packaged rates whereby the travel agent only collects a limited value for the voucher, which has an agreed value to the car rental operator. In the event of the issuance of these vouchers, the car rental operator will collect an alternative method of payment to cover extra rental charges. Notice must be taken that the car rental operator can decline the rental, in the event that the customer does not qualify to rent, due to insufficient funds / deposits for the excess / additional charges etc. These vouchers must clearly indicate what charges they include / cover.
  
  2.5 De-faced / Modified Vouchers: will not be accepted or if an issue, an alternative method of payment may be required by the car rental operator.