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

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

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

What a Connected Fleet Means to Avis (and Car Rental)

Counter bypass is just the beginning. The promise of a “data-driven ecosystem” that connects renters with the rental agency, retail services, and even the city is a better managed fleet, an improved user experience, and new revenue opportunities during the rental itself.

Job Finder: Access Top Talent. Fill Key Positions.