By Harvey Chipkin

Government employees rent a heck of a lot of cars. According to the Department of the Army’s Surface Deployment and Distribution Command, which runs the government car rental program, government travelers rent 2.25 million cars annually—spending $300 million.

(The car rental program will be moving to the Defense Travel Management Office early this year. That is the office charged with managing the Defense Department’s travel program and automating the system.)

Randy Tietsort, executive director – government sales for Dollar Thrifty Automotive Group, which operates the Dollar and Thrifty rental car brands, says, “Government travel is big for the car rental industry.”

As a result, he says, about 30 rental companies are in the federal government’s car rental program—which is a matter of entering into an agreement with the government to follow regulations; there is no need to win a contract.

Once a company signs on as a government carrier, Tietsort says, the company sets a “ceiling rate”—the highest rate it will charge government travelers. Once that rate is approved, the car rental company can fluctuate its rates—depending on how much government business it is getting.

As Tietsort says, “Our government rates are usually close to corporate rates; however, if a location needs some business, they can go a bit lower.“

Car rental companies and the government have “a good relationship,” Tietsort says, because, “While they can’t predict how much business we’ll be getting, they are happy that we are competitive with other rental companies. On the other hand we are happy to see the kind of flexibility government travelers have in responding to lower rates.”

One reason car rental companies “love” to work with the government, according to Tietsort, is that, “Government is so big, there is business everywhere. There might be a big military base in Minot, North Dakota; in fact we have locations in some places in large part because there is strong government travel business nearby.”

Also, a group of car-rental company representatives meets regularly with government officials to discuss policies and programs.

And the good news is that renting a car is getting better in many ways. As Tietsort notes, “Global positioning systems (GPS) are becoming standard and travelers are finding out how helpful it is.”

In addition to GPS, Tietsort says, “All the car rental companies are working to make the process more efficient and cost-effective. We are working on rental counter bypass, a choose-your-own-car program and other tools. The goal of all of us is to find ways to simplify—get travelers into a nice car, quickly and efficiently—and at a good rate.”

Car rental companies are continually trying to educate travelers to the fact that they can’t do better than the government rate. They might see a lower rate elsewhere but it would not offer the same benefits and would end up being more costly.

Following is a primer on how and why travelers should book through e-travel or through the travel agency connected with their federal agency.

How should government travelers book car rentals?
Under the government program, there are extensive benefits to renting through the e-travel system or through the travel agency connected with individual governmental agencies. No matter how travelers book, according to GSA, rentals have to be approved by the appropriate official in advance. According to GSA, if a traveler does book outside government channels, it should be approved. Otherwise, the traveler might not be reimbursed. In addition, if there is an accident or other incident that might create complications if booking was not done in the appropriate way.

What are the benefits of booking through proper channels?
Government travelers have a significant advantage if they book their rental cars through the government’s own rental car program.

* No charge for insurance coverage.

* No insurance deductible and no administrative fees for a car being out of commission due to accident.

* No no-show fees.

* Minimum rental age of 18, rather than 21 or 25.

* No fee for an additional driver.

* Highly competitive rates.

The only fee levied on government travelers, is the Government Administrative Rate Supplement (GARS), which was initiated several years ago—and is a uniform $5 per day.

Is car rental a per diem expense?
No. Unlike lodging and meals, car rental is not a per diem expense. When an employee is authorized to rent a vehicle, the expense is considered a transportation expense, which is reimbursed separately from per diem reimbursements.

What kind of vehicles can government travelers rent?

Economy, compact, intermediate, full size, luxury, minivans

Are government rates available to federal government and military employees on leisure non-official travel?
Yes, the same rates are available. However, other benefits such as unlimited mileage and free insurance coverage are not available for leisure/non-official travel.

Do government travelers need a credit card for rental?
On official travel, a credit card is not necessary. However, travelers will need a copy of official travel orders and will need to provide a cash deposit. For leisure/non-official travel, a major credit card is required.

Can a traveler upgrade to a better vehicle and pay the difference out of pocket?
Yes

Do government travelers get to be part of car rental loyalty programs?
Yes

Are special or discounted rates available for weekly or monthly rates?
Yes

Are government rates good only in the United States ?
No, they are available in a number of countries.

What should a traveler do in case of an accident or need for repairs?
In case of a breakdown, the renter should immediately notify the car rental company and request a replacement vehicle (if necessary) and instructions for the disposition of the disabled vehicle.

In case of an accident, the renter should notify the car rental company and the police, and obtain a police report for the company. If there is no police report, the renter must provide all information exchanged between the parties to the accident.

How do government renters handle billing problems?
Bring any problems or complaints to the manager at the renting location. If the problem cannot be resolved immediately, contact the government representative of the rental car company. For unresolved problems contact SDDC.

Harvey Chipkin is a freelance writer who has covered the travel industry, specializing in hotels, for more than 25 years. A longtime contributor to Frequent Flyer, he writes regularly for Lodging Magazine, Travel Weekly and Marketing Review. Harvey can be reached at hchipkin@comcast.net.