When you earn frequent flyer miles with US frequent flyer partners, the value of frequent flyer miles should be compared with the charges and fees that are associated with using such a program on your car rental.
Car rental companies charge a frequent traveler service charge when you earn earn frequent flyer miles from US frequent flyer partners.
These service charges are collected by car rental companies, they state, in order to offset some of the administrative and program costs that they incur from their participation in those frequent flyer partner partner programs.
Since 1997, all car rental companies that purchase frequent flyer miles from airlines must pay a 7.5 percent excise tax on the cost of those miles.
Keep in mind that these surcharges and taxes are not quoted in an online or phone reservation rate or rate quote. If the location you are renting at participates in a certain airline miles program, the surcharge will be added to your rate at the rental counter when you return your car.
So, How do frequent flyer miles charges work? Here's a list of current policies when you earn frequent flyer miles on your car rental:
*Note: Car rental companies can modify policy at any time; I make every attempt to maintain up-to-date info, but always check with an individual company to verify any policy. See: Disclaimer
Alamo
For qualifying Alamo rentals in Canda, the US or Puerto Rico, if the renter chooses to receive frequent flyer miles or credits as part of their rental, Alamo will charge a frequent traveler surcharge. The specific amount of the fee will appear on your rental agreement, in the charges section, when you return and pay for your rental.
For rentals in the United States, Puerto Rico, St. Thomas, St. Croix and Canada when a renter chooses to earn frequent flyer miles from participating Avis airline programs there will be a frequent flyer surcharge
Avis will assess a frequent flyer surcharge equal to USD $0.75 per day (except $1.00 per day for Southwest Airlines).
For rentals in the United States, Puerto Rico, St. Thomas, St. Croix and Canada, if a renter chooses to earn frequent flyer miles from American airlines frequent flyer program, the surcharge will be calculated based on the federal excise tax expense incurred by Avis when it purchases miles from American Airlines.
For rentals in the U.S., Puerto Rico, St. Thomas, St. Croix and Canada, Budget charges a frequent traveler surcharge equivalent to $.75 USD/day of the rental charges when you choose to receive frequent traveler points/miles on your rental.
For rentals in the U.S., Puerto Rico, St. Thomas, St. Croix and Canada, for miles earned through the American Airlines AAdvantage program, te surcharge is calculated based on the 7.5% federal excise tax expense incurred by Budget when it purchases miles from American Airlines.
Hertz charges a frequent flyer surcharge to renters who collect airline miles on their rentals. At the bottom of the Hertz.com homepage, there is a link to Airline Partners, where renters can check the frequent flyer surcharge that would be specific to their preferred airline program.
National charges a Frequent Traveler Service Charge of up to $.75 per day for rentals where the renter chooses to earn frequent flyer miles.
If the renter uses the American airlines frequent flyer program, the service charge will be calculated based on the Federal Excise Tax (7.5%) expense incurred by National when it purchases miles from American Airlines.