What Is a Premium Location Charge (PLC)?

A premium location charge (PLC) is an additional fee imposed by rental companies when a customer rents a vehicle or other equipment from a highly convenient or high-demand location. 

These locations typically include:

• Airports
• Major train stations
• Downtown areas
• Popular tourist destinations

The charge compensates the rental company for the higher operating costs associated with these prime locations.

Understanding and managing premium location charges is crucial for effective travel and expense management.

Why Do Rental Companies Apply Premium Location Charges?

Rental companies apply premium location charges for several reasons:

• Higher Operational Costs: Operating in high-demand locations often comes with increased expenses such as higher rent, security, and staffing costs.
• Convenience Factor: Locations like airports and city centers offer greater convenience to travelers. The premium charge reflects the added value of this convenience.
• Demand Management: By adding a surcharge, rental companies can manage demand more effectively, ensuring availability for those willing to pay extra for convenience.

Common Locations with Premium Location Charges

Premium location charges are typically applied at:

• Airports: One of the most common places where PLCs are implemented, due to the convenience for travelers arriving by air.
• Train Stations: Major train stations often attract similar surcharges.
• City Centers: Rental services in downtown areas or popular urban locations may include a PLC.
• Tourist Attractions: Locations near major tourist spots often have higher operational costs and as such a premium charge.

How Much is the Premium Location Charge?

The amount of the PLC can vary significantly depending on:

• Location: Charges at international airports may be higher compared to regional airports or train stations.
• Rental Company: Different rental companies have varying fee structures.
• Seasonality: High travel seasons may see increased PLCs due to higher demand.

Typically, the charge can range from a small percentage of the rental cost to a significant fee added to the total bill.

Impact of Premium Location Charges on Budget

Travel managers and finance leaders need to be aware of PLCs as they can impact the overall travel budget. Here are some considerations:

• Budget Planning: Factor in potential PLCs when planning travel budgets to avoid unexpected expenses.
• Cost Management: Explore alternatives such as renting from locations just outside of the premium zones to save on these charges.
• Negotiation: Some companies may offer negotiated rates or waivers for frequent or corporate clients, reducing the impact of PLCs.

Tips to Avoid or Minimize Premium Location Charges

While PLCs can be unavoidable in some cases, there are strategies to minimize or avoid them:

• Book in Advance: Early bookings can sometimes come with better rates and lower fees.
• Off-Peak Rentals: Renting during off-peak times can reduce the likelihood of high surcharges.
• Alternative Locations: Consider renting from locations slightly away from the prime areas. Many rental companies offer shuttle services from airports to nearby rental offices.
• Membership Programs: Join loyalty programs that offer fee waivers or discounts.

Premium location charges are a common aspect of the rental industry, especially in high-demand and convenient locations. 

Understanding these charges helps in better budget planning and cost management. By being aware of when and where these charges apply and exploring strategies to mitigate them, travel managers and finance leaders can make more informed decisions and optimize travel expenses.

Key Takeaways

• What is a PLC? A surcharge for car rentals at prime locations
• Reasons: Higher costs, convenience, demand management
• Locations: Airports, train stations, city centers, tourist spots
• Cost Impact: Varies by location, company, and season
• Budgeting Tips: Plan for PLCs, consider alternatives, join loyalty programs