Sioux Falls Airport RAC Customers Facing Fee Increase

Rental car agencies at the Sioux Falls Regional Airport Authority in South Dakota would face an airport concession fee increase but would be allowed to charge a new fee to customers, under an agreement in the works between the authority and the rental car companies, according to the Argus Leader.

The fee is meant to improve parking at the airport. The airport authority on Sept. 16 approved a notice to bidders for a new rental car concessions agreement. The agreement with the airport's four rental car agencies will be up at the end of the year.

The four-year lease will include an increase in the concessions fee from 10 percent to 10.5 percent. The concession fee revenue is used for operations and maintenance of the terminal. If implemented, the charge probably would start at $2 a day for rental car customers, Letellier said.

Dan Letellier, airport executive director, said the fee increase is in line with that of other cities.

Because the airport has only four stalls for rental car companies to lease, the authority must put the contract out for bids to give other interested companies a chance to lease a spot, Letellier said. As part of the bid, the rental companies must guarantee that they'll pay at least $150,000 a year to the airport. If their 10.5 percent concessions fee doesn't meet that goal, they must make up the difference.

The new agreement also will allow for the creation of a customer facility charge to be collected in the future. Such a charge could help pay for rental car-related facilities such as a new car-washing building. It also could help pay for a portion of a new parking structure that is planned in coming years at the airport to house the rental cars as well as create more public parking spaces, Letellier said.

The airport authority will pick the four best offers at the end of October.
 
One Sioux Falls rental car manager said the customer facility charge is a positive development because it could be used to provide a covered parking lot for customers in the winter.

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

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.