Sorry, wrong address: Enterprise turns down Expedia customer at the counter

loganReaders of this site are probably familiar with car rental companies’ no-rent lists. But did you know that there are other instances in which a company might refuse you a car — even if you have a completely legitimate reservation?

David Larson stumbled upon one of those reasons when he tried to rent a car from Enterprise in Boston recently. He explains:

I recently made a reservation with Enterprise Rent A Car at Boston Logan Airport. I made the reservation through Expedia. I live in Boston proper and this location is open late nights when I wanted to rent the car.

Upon getting to the airport counter the agent and then the manager told me I wasn’t allowed to rent a car from the airport location because of Enterprise policy. They wanted proof of having flown into the airport, something that wasn’t mentioned on the Expedia site. Even after repeatedly mentioning the valid reservation from Expedia (with whom I would assume they have some marketing agreements), the manager wouldn’t rent me a car.

I had to wander around the airport parking lots at 10 p.m. and finally got a car at almost three times the cost at Alamo (which Enterprise owns, ironically).

Is this policy discriminatory and/or illegal? Could I contact the State Attorney General?

I checked Enterprise’s site to see if I could find any information about its don’t-rent-to-locals policy. I couldn’t.

Is this policy discriminatory? Absolutely.

Illegal? I don’t know. I’m not a lawyer, but I think the Massachusetts Attorney General’s office might be able to answer that question.

I contacted Enterprise on Larson’s behalf. A few days later, I received the following update:

I received a phone message from Bill Fobiano at Enterprise at Logan Airport. He said he would be sending me a refund for the difference in costs of the car from Alamo, about $70 via a check to me in the mail within about a week.

He said it is standard policy to shuttle people to Alamo in cases like mine, where someone who doesn’t have an airline ticket shows up to rent. I think this is a crock.

The gentleman at Alamo that night was well aware that this policy had sent many individuals to their location and that almost all were very angry on arrival. The Enterprise agent at the time, never mentioned a courtesy shuttle or a discount as Mr. Fobiano had indicated on the phone today.

I also happen to know this policy exists at other Enterprise airport locations throughout the country. I think it has to do with the fact that only relatively recently has Enterprise broken into the “on airport” market. I suspect a non-compete clause with Alamo and National at the time of their acquisition. That doesn’t make it legal though from a public standpoint.

I think this policy is illegal, the notion of me contacting the State Attorney General frightens the management and they generally could have cared less if it weren’t for someone in the media (you).

I still intend to write a formal letter to the Commonwealth of Massachusetts State Attorney General. This would have far reaching consequences for Enterprise if the ruling were upheld in my favor.

I agree that Enterprise’s policy is troublesome. At the very least, it should be clear about its apparent rule of not renting to people with a local address at an airport location.

(Photo: David Larson/Flickr Creative Commons)

  • Eric Smith

    So what’s their reasoning behind this? This is the opposite of what I’d expect. If the customer is willing to pay the (usually) higher price and extra fees associated with renting from an airport location (mainly the airport concession fee), what difference should it make to the rental company if that person is local or flew into the airport?

    I know Enterprise will not pick you up at an airport if they have a location at that airport. This makes sense since they aren’t going to shuttle you to a in-town location where you can often get a cheaper rate.

    Which leads to a question. If I rent from an airport location near my home, do I still have to pay the airport concession fee? This becomes an even stickier subject if said location isn’t actually IN the airport, but is one of those “off-site” airport locations where they run the shuttle buses. If I walk into that location off the street, never setting foot in the airport, I’m not going to be very happy being dinged for an extra 10%.

  • http://waynedayton.tripod.com Wayne Dayton

    I certainly hope that the AG of MA sticks it to Enterprise deep deep deep. This is clearly an anti-competitive action that runs against the Sherman Anti-Trust Act with regards to Enterprise’s collusion with its wholly-owned divisions, Alamo and National. In Montreal, Enterprise shut down all of the off-airport Alamo and National locations so as to have only Enterprise counters in the suburbs. The proud tradition of Ted Tilden has gone by the wayside very quickly.

  • Carver

    Location based discrimination isn’t that uncommon. Insurance companies use it all the time in rate setting. Delivery companies use it to determine whether to deliver to a certain locale.

    Absent a specific state law to the contrary, location based discrimination is only illegal if it is being used as a pretext to for more traditional discrimination such as race, religion, etc.

  • MarkieA

    Although the policy is definitely odd, I can’t imgaine that it’s illegal. It’s a private firm; they should be able to decide who they rent to or not. Of course, there’s always the caveat against discriminatory policies, and I don’t know where this would fall, although I can’t imagine a “locals” discrimination suit going very far.

  • Szymon Krasucki

    Actually, if you try to book an Enterprise car in BOS on Expedia, and you click on “See the detailed information page for this rental” you can see:

    When you arrive
    THIS OFFICE SERVICES DEPLANING AIRPORT CUSTOMERS ONLYCUSTOMERS NEED TO PRESENT AIRLINE TICKET FOR
    VERIFICATION.

  • Phil

    I believe that there are car rental agencies at the Vancouver BC airport that will not rent to local residents. In the back of my mind I remember something about it, that it might stop local residence’s that may be trying to rent a car for illegal activities, and having an airline ticket or an address outside of the local area may prevent some of this.

  • Ames

    Another case of transparency or the lack thereof. If Enterprise, through Expedia, had told Mr Larson of their policy, he would have made other arrangements. If he had not had to wander around airport parking lots late at night he likely would not be perturbed and pursuing this. I do wonder if it is legal to refuse to rent to someone with a local address so this is worth pursuing. I can think of times when I could have rented a car, even though I was local, because it would be faster to drive than to wait out an airport delay.

  • Chicky

    I have rented from Enterprise at the airport location in HSV. I did this because they are open on Sundays, and the local office in my city is not. That way, I don’t have to pay for an extra day if I don’t need the car. Even though I don’t live in HSV proper, I’ve never had any problems. I’ve always just picked up my car and gone on my merry way. Go figure. I’ve rented from Enterprise because they have an off-airport location, and it’s easier to get to than dealing with the airport hassle.
    Honestly, this policy is a head-scratcher, especially in this economic climate.

  • David

    I’ve never been asked to verify that I have actually flown to an airport. For awhile, I had neglected to update my California driver’s license and still rented cars multiple times from the San Diego airport, even though I had a ‘local’ address listed on my license. I was never once questioned about it.

  • Craig

    For what it’s worth, renting a car from Enterprise last weekend at Denver (DIA), I remember signing a part of the contract that stated we had actually flown in. We didn’t have to prove it by showing a ticket (though we clearly had gotten off a plane with our luggage), but it was on there nonetheless.

  • jmj

    @Eric, complete conjecture, but probably has to do with the way ERAC compensates their locations. Compensation is heavily based on commissions. Since airports already have an “advantage” with the traffic that a airport location generates, this allowance probably appeases the other branch managers and such who depend on commission.

    But like I said, complete conjecture, and not to be take as fact.

  • Scott Loeff

    I run a camp program each summer for a week and I always have to rent a Mini Van. 3 years ago I reserve one at Enterprise at the airport. I had to pick up staff there and figured I pick uo the rental van as well. They refused to rent to me despite that some in my party had fllown in. I just went to another company for about the same rate. So all they did was loose my business as the Mini Van sat there for atleast 24 hours. Its just dumb buisness.

    They did say they had a neighborhood office down the street which open in an hour. But that office had no Mini Van showing in the system and that they have to get one from another location 45 minutes away. They could not take one from their Airport location.. Double dump business

  • Bill

    So, does anyone know why they do this? I just reserved a car at Heathrow with Hertz and it stipulated that I must be an arriving passenger.

  • Carver Farrow

    Alamo has/had a policy that in order to use a debit card to rent a car you had to prove that you had a return ticket.

    I was told that the reason is that people with return tickets generally return the car at the agreed upon time. Their experience was that locals were less inclined to return the cars in a timely manner.

    Whether that’s true or not I havent’ a clue

  • Chris in NC

    Actually, I’m not surprised by this article. There are a lot of crazy rules in the northeastern US. Many locations, will NOT rent to residents of NYC. I suspect I know some of the reasons.

  • David Z

    I was told that the reason is that people with return tickets generally return the car at the agreed upon time. Their experience was that locals were less inclined to return the cars in a timely manner.

    Makes sense if you think about it. Those with a return ticket have to return the car early to catch their flight, after all.

    As to whether Expedia should’ve stated that needs-a-ticket thing “upfront” rather than in another page, how much should one say so in front of one’s eyes without maybe overloading them with too much info? Then again, will the user read that bit anyway?

    I’ll go with Carver’s comment that this isn’t likely illegal unless any specific law says so. In bad taste, sure, but…not likely against any law…yet.

    One could always cite right of refusal, also absent any law on it.

  • Barry

    I didn’t see a time limit in Expedia’s fine print. Surely the OP has flown into Logan at some point in past…just break out that ticket. Perhaps he just “got lost” (really lost?) between the terminal and the offsite rental location.

    “But this ticket is from 6 months ago, sir.”

    “These things are just so far away! You need a faster shuttle bus!”

  • http://Hotmail David Farnham

    I often use Enterprise’s airport location for local rentals here in Roanoke. I’ve never had a problem–but I’ve had problems with almost every major car rental company (with the exception of Hertz) in Boston.

  • Not Really Barbie

    Who has an airline ticket these days to present?

    Next – the general reason for this is to prevent city residents who have either poor driving records or little experience driving from using public transpo to the airport to rent a car. These folks who do not own a car and who do not drive often are at very high risk for accidents and damage – and in many cases they have no assets from which the rental company can recover.

    That being said- Mr. Larson had a contract to rent a motor vehicle at the stated date and time – and failing to give him a vehicle for a non-disclosed reason subjects the company to liability- and they know it – which is why they sent a $70 check.

  • Jay Drew

    I do all of my local rentals at the airport Enterprise location, which is (admittedly) off-site. I always explicitly tell them I’m a local renter, and they cheerfully delete the airport concession fee and airport taxes from my rental.

    If this problem shows up only at locations that are really on-airport, I suspect it’s part of their contract and they don’t have a lot of leeway.

  • Ed

    Wait a minute…isn’t it Enterprise that advertises in their nationwide commercials “we’ll pick you up”?
    They show a woman who has a car accident, and Enterprise picks up her and her kids with the rental car so that they can get to the game on time? Yeah, I thought so!

    Ed

  • Claudia Davis

    I would love to know what Chris in NC meant by “Many locations, will NOT rent to residents of NYC. I suspect I know some of the reasons.” I have never encountered a rental facility not renting to residents of NYC. Why wouldn’t they?

  • Denise

    To Eric (and others thinking of renting from an airport location): I’ve been shopping around for my husband to get a rental car for his trip to Dallas in a few months. The “Airport Concession Fee” plus the various taxes weren’t a measly 10%… They more than DOUBLED his rental fee! His car would have cost $182, taxes brought it to about $230, but the airport concession brought the total to $393!!!

    It only costs $25-35 to have an airport shuttle pick you up and take you to your hotel, where you can have places like Enterprise deliver your car for free. Pay the extra $50 airport drop-off fee when you return your car and you don’t need to worry about the off-airport sites being closed on weekends or late nights and you save the return airport shuttle fee. It’s a huge savings over the cost of renting from airport locations.

  • MidMom8949

    Just to note–it can’t be only airport arrivals. I’ve had Enterprise pick me up at the Providence, RI, train station.

  • Simon

    I have yet you hear even one positive experience from friends and co-workers who have rented from Enterprise. The most common theme is the attempt to shake down renters upon returning the car. I have personal knowledge of THREE seperate people who were the victim of an Enterprise employee offering to “forget” trumped up damage to the rental car for anywhere from $20 to $100 IN CASH! The response from Enterprise? Nada – nothing – didn’t happen, nothing to see here – etc.

    I can not think of trip flying on Spirit, renting from Enterprise and staying at the “Patel Inn” in the city of your choice.

  • Joe

    I can tell you, as a previous Enterprise employee that has worked at an Airport location, that they will not rent to customers that have not deplaned at that location because of rate structures. Their rates at airports tend to be significantly cheaper than than local rates because there is a lot more competition. Enterprise is widely known to have a majority share of “Home” or local locations (even though Avis/Hertz are trying to move in), so they can set rates quite easily. At airpirt locations, where they have a minority share, they try to undercut their competition.

    While I was at the airport location, a majority of the “local” customers that came to rent there within the normal operating hours of the local branch a few blocks away but found that the airport location had cheaper rates. The Enterprise website lists the boarding pass requirement quite clearly.The rules and regulations on most travel booking sites (outside of HotWire) also list these requirements but it is not as prevalent.

    One other reason that Enterprise has adopted this policy is that they are not considered “on site” locations at a lot of airports. Due to the market that Enterprise has traditionally dominated (local/home markets), a majority of the airports have asked Enterprise to prove that it is primarily there to service airport and not local customers.

    Just a little insight intot he policy and procedures that they run. A lot of locations do have the capacity to rent to local customers (as they will have a terminal set up that is remotely linked to a local branch rather than the airport location) but will refuse to do so if they are overbooked.

  • http://www.airportparkingcompared.com Jacob @ Gatwick parking

    This isn’t the first time I have come across rental companies that happen to forget to mention cheaper and more convenient ways for people to get around. This sounds like a well planned scheme to me that needs to be investigates.

  • roocifer

    A) It’s usually the airports that prevent both local renters and Enterprise shuttling you back and forth between locations besides airport terminals.
    B) Why would you be mad at Enterprise when the third party you booked it through apparently didn’t bother to inform you of the rules and conditions?
    C) I know for a fact that the third party reservation sites will lie to you because I had a reservation at Avis for the “airport” location to where I was flying and when I arrived it was pointed out to me that the location was actually 10miles away from the airport!  I was informed that the third parties tell people any location with available cars is listed as an airport location when the actual airport location is sold out.
    D) You think rental companies are bad? Those third parties pretend to sell you the car insurance as if they are the rental car company in addition to pretending your reservation is at the airport.  But really all you’re buying is an additional insurance policy with a deductable and everything and it’s through them and not through the rental car place.  

    If it comes down to a battle between who ismore trustworthy, I’m going with the rental car company.  I’ll never use a third party system again.