Car rental companies charge additional surcharge

For customers who rent a car at one of Hawaii’s airports, beginning September 1, they will be charged an additional $1. The surcharge from the car rental companies will help finance an upgraded car rental facility. Car rental companies such as Budget, Avis, and Hertz have expressed that they believe the upgrade to a consolidated facility is long overdue. They stress the benefits for the project: one multi-level location for car rental operators, unified shuttle service, and a better customer experience. Opponents to the surcharge tax, travel operator to highlight, fear that the tax could not come at a worse time – tourism is in a slump due to the current economic environment and wholesale operators who sell prepaid vacation packages will have to absorb the additional costs.

The state estimates $10 million a year in revenue will result from the tax, eyeing 2.5 years until the targeted $25 million is attained. Avis, Dollar, Hertz, and Budget car rental companies all operate at the airports, while car rental operators Alamo and Advantage will not be hit with the $1 surcharge tax as they operate off-site of the airport.

A few questions whose answers will unfold over the 2.5 year period: will it be more difficult to sell Hawaii as a destination? Will wholesale travel operators lose their competitive edge, or be forced to close? Will car rental operations in Hawaii improve? Leave us a comment with your thoughts. For those heading to Hawaii after Sept. 1, think about saving money with rental car coupons.