South Dakota Airport Rental Agencies Seek Help
Their revenue fell 23 percent last year and has fallen 16.5 percent so far this year.
The Sioux Falls Regional Airport proposed to allow rental car companies at the airport to increase their airport fees from 9 percent to 10 percent, after the airport experienced a 10-percent drop in the number of air travelers last year, which contributed to a 23-percent reduction in revenue for the car rental companies, according to the Argus Leader.
Car rental companies at the airport have already experienced a 16.5 percent drop in revenue this year. Rental car agencies at the airport have asked the airport for help after the fall in revenue.
In addition to the fee increase, Dan Letellier, executive director of the airport, also offered to reduce by 3.6 percent the minimum payment the companies pay to operate in the airport. Another idea involves renegotiating the four-year car rental contracts this summer instead of waiting until they are up for bid in December.
Alamo/National, Avis, Enterprise and Hertz operate counters in the Sioux Falls Regional Airport baggage claim area.
Doug Kooken, regional manager for Enterprise Rent-A-Car, said that without help, rental companies might have to compensate by maintaining older fleets and cars with more miles on them. If allowed to collect 10 percent on rental revenues, car company customers would see about a 90-cent increase in a typical rental cost, he said.
One Hertz manager said that if the percentage collected is raised for this year, it should be rolled back to 9 percent once the economic situation improves. Raising prices is not a smart move in a market like Sioux Falls, where rental car operators are worried about “leakage,” or a situation in which area customers drive to other airports to take advantage of cheaper flights there.
More Rental Operations

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 →
U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius
The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.
Read More →
Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030
A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.
Read More →
Rental Car Fleet Sales Show Mid-Year Strength
June gains ensured rental fleets closed out the first half of 2026 in positive territory.
Read More →
Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
