Proposed San Mateo County Tax Hike Could Decrease Travel in the Area
The U.S. Travel Association reveals damaging survey results of a new tax hike that would affect travelers to San Francisco.
According to a survey by the U.S. Travel Association of travel and meeting industry professionals, travel to the San Francisco area may decrease this summer because of a proposed tax hike in San Mateo County.
The San Mateo County Board of Supervisors’ proposed tax increase will appear on the June 5th ballot as measures T, U and X. If passed, rental car taxes would jump by 11.3%, the hotel occupancy tax by 20%, and it would establish a new 8% tax on parking.
Almost half the survey respondents said they would search for another place to hold their meetings instead of the San Francisco area. Another 25% said they would cut their spending if they decided to still hold events in the area.
In addition, 58% think the Bay Area’s tax rates are already one of the highest in the country.
In the past, travelers and visitors to San Francisco have generated more than $16 billion in spending and nearly $790 million in state and local taxes.
“Our survey results clearly show that raising taxes on travel goods and services would drive travelers to other destinations,” said Roger Dow, president and CEO of the U.S. Travel Association. “The San Mateo County Board of Supervisors’ proposed tax hike will hurt the local economy, deepen the county’s budget woes and will be felt throughout the Bay Area.”
More Rental Operations

Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
The Desk Upsell Is Costing Operators More Than it Earns
Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.
Read More →
