Travel Agencies File Suit Over RAC Commissions

SAN DIEGO -- Four travel agencies, along with a former travel agency owner, have filed a class-action suit against six major car rental systems, alleging that the RACs have routinely short-changed travel agents on commissions since 1999.

The lawsuit, filed June 12, names Avis, Budget, Dollar, Thrifty, Enterprise and Hertz as defendants.

The travel agencies behind the suit are Wide World Tours of Mission Valley, based in California; Travel Support Systems, which operates as Outside Sales Support Network in Florida; Vacation Marketing Group of Hawaii, and International Travel Bureau in California. Cecilia Pedroza, who recently folded her own travel agency, is also a plaintiff.

The lawsuit alleges that the rental companies violated their own commission agreements by failing to include all revenue sources when calculating travel agency commissions. Revenue sources unjustly excluded from commissions have included airport concession recovery fees, vehicle upgrades, collision damage waiver and supplemental liability insurance sales, additional driver fees, fees for drivers under 25, and refueling charges, said Alexander Anolik, one of the attorneys representing the travel agents.

In addition, Anolik said, rental companies have begun deducting processing fees from commission checks issued to travel agents. "They're charging the agents to get their own commission," he said.

"The lawsuit has no merit, and we will oppose it vigorously," said Ted Deutsch, vice president of communications and public affairs for Cendant Car Rental Group, which operates Avis and Budget.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>