Fees Charged when you Earn Frequent Flyer Miles with your Car Rental

When you earn frequent flyer miles with US frequent flyer partners, the value of frequent flyer miles must 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.

Under the tax relief act of 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 (approximately 6 cents per rental day). The 7.5% FTP tax when you earn frequent flyer miles, applies to all us states except Arizona, California, Missouri, Oregon and Wyoming. 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:

Alamo

For rentals picked up after September 4, 2009, when you earn frequent flyer miles, Alamo charges a Frequent Traveler Service Charge of up to $.75 per day (except $1.50 per day up to $4.50 per rental for Southwest) for qualifying rentals in the United States, Canada and Puerto Rico.

When a renter receives miles in the American Airlines frequent flyer program, the service charge will be calculated based on the Federal Excise Tax (7.5%) expense incurred by Alamo when it purchases miles from American Airlines.

Alamo has the following frequent flyer partners that may be subject to service charges:

Alaska Airlines - Mileage Plan TM , American Airlines - AAdvantage, Continental Airlines - OnePass, Delta Air Lines - SkyMiles, Hawaiian Airlines - HawaiianMiles, Hilton Hotels - Hilton HHonors, Midwest Airlines - Midwest Miles, Northwest Airlines - WorldPerks, United Airlines - Mileage Plus, US Airways - Dividend Miles

Avis

The following charges apply to rentals picked up May 28, 2009 and forward. For rentals in the United States, Puerto Rico, St. Thomas, St. Croix and Canada when a renter chooses to earn frequent flyer miles from the following US airline programs (Alaska Airlines, Continental Airlines, Delta Air Lines,Hawaiian Airlines,Midwest Airlines,Northwest Airlines,Southwest Airlines,United Airlines,US Airways,Choice Hotels)

Avis will assess a frequent flyer surcharge equivalent to USD $0.75 per day (except $1.00 per day for Southwest).

For rentals in the United States, Puerto Rico, St. Thomas, St. Croix and Canada when the renter chooses to earn frequent flyer miles from the American airlines frequent flyer program, the frequent flyer surcharge will be calculated based on the federal excise tax expense incurred by Avis when it purchases miles from American Airlines.

Budget

Charges apply for the following frequent flyer partners: (Alaska, Choice Hotels, Continental, Delta, Hawaiian, Northwest, Southwest, United and US Airways) For rentals in the U.S., Puerto Rico, St. Thomas, St. Croix and Canada, when you choose to receive frequent traveler points/miles, Budget will assess a frequent traveler surcharge equivalent to $.75 USD/day of the rental.

American Airlines

For rentals in the U.S., Puerto Rico, St. Thomas, St. Croix and Canada, when the renter chooses to receive miles in the American Airlines AAdvantage program, the frequent flyer surcharge will be calculated based on the 7.5% federal excise tax expense incurred by Budget when it purchases miles from American Airlines.

Dollar

Alaska Airlines: frequent flyer surcharge $0.95 per daycollected at time of rental.
American Airlines: frequent flyer surcharge $0.06 per day collected at time of rental.
Continental Airlines: frequent flyer surcharge of $0.95 per day collected at the time of rental
Delta Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
Hawaiian Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
Northwest Airlines: frequent flyer surcharge $0.50 per day up to $2.00 per transaction collected at time of rental.
Southwest Airlines: frequent flyer surcharge $1.50 per day up to a maximum of $8.00 per transaction collected at time of rental.
United Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
US Airways: frequent flyer surcharge $0.95 per day collected at time of rental.

Enterprise

Their website stated that at this time, they do not give frequent flyer miles or points.

National

National charges a Frequent Traveler Service Charge of up to $.50 per day for qualifying rentals in the United States, Canada, and Puerto Rico. This charge will increase to $.75 per day for rentals picked up after December 21, 2009.

When you receive miles in 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.

National has programs with the following frequent flyer partners that may be subject to service charges:

Alaska Airlines - Mileage Plan TM , American Airlines - AAdvantage, Continental Airlines - OnePass, Delta Airlines- SkyMiles, Hawaiian Airlines - HawaiianMiles, Hilton Hotels - Hilton HHonors, Midwest Airlines - Midwest Miles, Northwest Airlines - WorldPerks, United Airlines - Mileage Plus, US Airways - Dividend Miles

Thrifty

Alaska Airlines: frequent flyer surcharge $0.95 per daycollected at time of rental.
American Airlines: frequent flyer surcharge $0.06 per day collected at time of rental.
Continental Airlines: frequent flyer surcharge of $0.95 per day collected at the time of rental
Delta Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
Hawaiian Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
Northwest Airlines: frequent flyer surcharge $0.50 per day up to $2.00 per transaction collected at time of rental.
Southwest Airlines: frequent flyer surcharge $1.50 per day up to a maximum of $8.00 per transaction collected at time of rental.
United Airlines: frequent flyer surcharge $0.95 per day collected at time of rental.
US Airways: frequent flyer surcharge $0.95 per day collected at time of rental.