Image via WikipediaWhat’s it like on the other side of the car rental counter? The answer may surprise you. I’ve been corresponding with a former car rental employee, and he’s shared some remarkable insights into the business that might help you make a more informed decision the next time you rent a car. (more after the break)
The first thing you need to understand, he says, is that agency employees aren’t in the customer service business. They’re salespeople.
I’m judged almost solely on a number. It’s determined by the number of times I sell our products per given opportunity.
Every customer who walks up is an opportunity to sell a number of different services. For me, I can sell the damage waiver — that’s the most popular — liability insurance, personal accident and effects coverage, and the pre-pay fuel option.
Upon returning a customer’s vehicle, I can charge a fee if the tank is not filled up to the level it was rented at. For customers who have reservations, I can upgrade them to a better vehicle. That’s six different opportunities to sell to each customer.
As a car rental employee, your goal is to sell “every one of these products to every customer,” he adds. And if he can’t? Then that all-important number by which every car rental employee is judged is lowered.
So even though you may sell, for instance, the liability insurance, you have failed to sell four to five other services and thus your number will be docked. This number is very important because we get paid a commission on it according to a pay scale and the dollar amount we’ve brought in each month and quarter.
There is a floor and ceiling to this pay scale. If your number is below a certain level you aren’t eligible for a commission.
If our numbers remain consistently high, we can be considered for promotion. If our numbers are low, we hear about it from umpteen different managers in e-mails, by phone, and in person.
The numbers game is played at the highest level. Managers are judged based on their location’s cumulative number — an aggregate of all employee numbers — so they’re likely to encourage more aggressive sales strategies.
“I saw all kinds of tactics to increase these numbers,” he says. “Some higher managers turned a blind eye to questionable and unethical methods.”
How does this affect you?
Keep in mind that you’re dealing with overworked, stressed-out employees from the moment you walk up to the counter to the moment you return your vehicle. At one point, this ex-employee was working 12-hour shifts without a break. Also, remember that they see dollar signs the moment you walk through the door. So they will do anything in their power to sell you insurance, a fuel purchase option or an upgrade.
How to get around this racket? Here are six tips from my insider.
1. Always inspect the car you are renting with an employee before signing anything. Car rental offices should have a vehicle inspection form that’s signed by you before the car leaves the lot. This limits the possibility that you’ll get blamed for damage that you didn’t cause. “Unfortunately, from my experience, many customers were blamed for damage they did not cause,” he says. “As a tired and busy employee, the last thing I want to do is walk around the car with you and make notations about the small scratches on the rear bumper. I could care less. But you should be adamant that this is done before you sign for anything.”
2. Off-airport locations are often cheaper than airport locations. The vehicles at airport locations typically cost more because of airport fees, which cover the car rental agency’s rental and transportation costs. “The cost difference can be great,” he says. “You may want to reserve a car at a location nearby the airport. You should see a difference.”
3. Make multiple reservations and play the system. Most reservations can be canceled without penalty. My insider suggests making multiple reservations. “Look at rates online or call in for them,” he says. “If you’re not too picky, make a reservation for one of the small, cheap cars. Make another for a nicer car that you might like to rent. When you show up, use the reservation for the smaller car. Ask the rep how much it costs to upgrade to the nicer car you want to rent. If they rate ends up being less than what you reserved the higher-class car at, then do it. If not, use the other reservation. They have to honor reservation rates.”
4. Negotiate your upgrade. Upgrade rates don’t exist. They’re made up by salespeople. “If you come in with a Ford Focus reservation and were interested in a larger car, I’ll charge an upgrade for you to get into a Ford Escape,” he says. “If you have a Ford Escape reservation and are looking for something more fuel-efficient, I’ll charge you an upgrade to a Ford Focus. This actually happens!” The “fee” is entirely at the salesperson’s discretion, and is entirely negotiable.
2. Off-airport locations are often cheaper than airport locations. The vehicles at airport locations typically cost more because of airport fees, which cover the car rental agency’s rental and transportation costs. “The cost difference can be great,” he says. “You may want to reserve a car at a location nearby the airport. You should see a difference.”
3. Make multiple reservations and play the system. Most reservations can be canceled without penalty. My insider suggests making multiple reservations. “Look at rates online or call in for them,” he says. “If you’re not too picky, make a reservation for one of the small, cheap cars. Make another for a nicer car that you might like to rent. When you show up, use the reservation for the smaller car. Ask the rep how much it costs to upgrade to the nicer car you want to rent. If they rate ends up being less than what you reserved the higher-class car at, then do it. If not, use the other reservation. They have to honor reservation rates.”
4. Negotiate your upgrade. Upgrade rates don’t exist. They’re made up by salespeople. “If you come in with a Ford Focus reservation and were interested in a larger car, I’ll charge an upgrade for you to get into a Ford Escape,” he says. “If you have a Ford Escape reservation and are looking for something more fuel-efficient, I’ll charge you an upgrade to a Ford Focus. This actually happens!” The “fee” is entirely at the salesperson’s discretion, and is entirely negotiable.
5. Timing is everything. The largest expense incurred by a car rental company is depreciation. Basically, these companies are leasing all the cars in their fleet. They’re charged different rates for different types of cars. “It is very important for car rental companies to have as many cars on the road as possible, as any cars that are sitting are not making money, and are actually costing the company money in depreciation fees.” A customer who shows up after a busy holiday weekend can more or less name the price for a rental car. “They should be begging for you to take cars off their lot,” he adds.
6. Complain and you shall receive. Car rental companies often go to great lengths to make customer happy — even when their grievance are not legit. “Like most companies, we want you to use again — and again and again,” says the insider. “Even some of the most ridiculous complaints that I’ve seen have been resolved by one of my managers. They offered a full refund and a free rental to a customer I knew was full of it. But we want you back so much that an occassional hit is fine.”
6. Complain and you shall receive. Car rental companies often go to great lengths to make customer happy — even when their grievance are not legit. “Like most companies, we want you to use again — and again and again,” says the insider. “Even some of the most ridiculous complaints that I’ve seen have been resolved by one of my managers. They offered a full refund and a free rental to a customer I knew was full of it. But we want you back so much that an occassional hit is fine.”
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