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-chang...
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.
More Rental Operations

ICRS 2027 Opens Call for Papers
The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.
Read More →
Turo to Launch Vehicle Delivery Service
Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.
Read More →
Palm Beach Airport Code Change Creates Car Rental Distribution Gap
A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.
Read More →
U-Save Continues Dominican Republic Expansion with Launch in Punta Cana
The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.
Read More →
When AI Books the Rental Car, Who Controls the Sale?
As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)
Read More →
European Booked Car Rental Rates Fell 5%, Results Varied by Country
Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.
Read More →Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
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 →
