car

rental
GR 11 TOURISM | TERM 2
Intro

Creates jobs
Provides service to
tourists
Flexible means of
transport
Don’t have to rely on
public transport
 Bigger companies

Car rental Offices at major

airports, cities, and
companies towns

Smaller companies
Only in a particular
Avis region or province
Budget
Europcar Industry association
Hertz South African Vehicle
Rental and Leasing
Tempest Association
Thrifty (SAVRALA)
Conditions
Valid driver’s license
Above a certain age (21/23)
Young driver surcharge or
additional insurance
Have had a license for a certain
number of years
Credit card with funds to cover
rental cost & insurance
Sign a rental agreement
 Rental cost factors
duration of rental
type of car
01 03

02 distance renter will travel

type of insurance
collection and drop-off
points
optional extras eg
Baby seat 01

GPS 02

Tyre protection 03
Types of cars
size: small, SUV, minibus
transmission: manual,
automatic
aircon or not
more features = higher
rental
Rental rate calculation

Travel distance/day Additional kms Damage

 Insurance
Reduces the impact of different risks

Collision damage waiver Theft loss waiver Excess

Minimum Renter pays Amount CDW
compulsory set amount if and TLW
insurance car is stolen insurance
doesn’t cover

Super collision damage Super theft loss Personal accident

waiver waiver insurance
Taken out to Taken out to Compensate renter
avoid an excess avoid an excess in case of injury

If the driver is reckless or negligent, the insurance will not pay the damage or loss e.g.
driving under the influence of alcohol or not obeying traffic rules. Insurance generally
doesn’t cover damage to tyres, windscreen and undercarriage.
 Some add it into
Additional costs
prices while others
add it after as
& charges
additional cost
Fixed 1% levy paid to Airport car rental is expensive and
the Tourism Business costs more than other branches
Council of South Difference in cost is the airport
Africa Car is received by surcharge
renter with full tank of Either a % of the rental cost or a fixed
fuel amount
Tourism levy Expected to return car Airport surcharge
with full tank of fuel
Fuel deposit is equal
Person who rents the car is the main
to cost of refilling tank
driver
If tank is full on return,
If another driver will also be driving,
renter gets deposit
an additional driver charge is paid
back
This is a fixed amount per rental
Fuel deposit & charge
Additional driver charge
 If car is delivered to
Additional costs
office or hotel
Amount depends on
& charges
distance from branch
Usually a limit on the When car is used to travel to
distance they are neighbouring countries eg Namibia
prepared to travel Special terms and conditions apply
When the renter
collects car from one
branch and returns it
Delivery/collection to another Cross-border fee
fee Eg collect in Cape
Town and return to
Differs from company to company
JHB
and country to country
Fixed amount
Paraplegic hand controls
depending on distance
Baby seat
between offices
GPS
One-way rental fee
Optional equipment and extras
Incidental costs
Accident admin fee
insurance assessor is needed
after an accident - fee covers
this. Fixed amount
Traffic fine admin fee
Renter is responsible for
traffic fines
Traffic dept sends fines to the
company
Toll fees
Paid by the renter
Payment options
Because of fraud and theft, cash and
bank transfers aren’t accepted
Sometimes car rentals will allow big
companies to open an account and
pay at a later stage through a bill back
voucher
Company must provide proof they
have funds to pay
Individual renters use a credit card
an amount is reserved to cover all
possible charges
upon return of the car, the final
amount is calculated and charged
Pg 67-73 in book