Definition: A drop charge is a fee charged to the renter when the vehicle is returned to a location other than the renting location. CARS+ supports three kinds of Drop Charges:

Standard Drops - These are the standard, advertised charges for one way rentals. Use this program to define the normal drop charges for one-way rentals between owned locations, between owned and foreign locations, and between a group of locations located in a "drop zone". This is the subject of this chapter.

Restricted Temporary Drops - These are temporary charges that override the Standard Drop Charges for a limited period of time. They are often used to make temporary adjustments in the fleet movement either encouraging or discouraging one ways for a specific class of vehicle. Once these either expire or are deleted, the Standard Drop Charge records take affect once again. Use the Restricted Drop Charge program to set up these temporary drop charges. These records can also be used to stop one-way rentals temporarily between to locations for a limited period of time.

Alternate Drops - This alternate drop charge is "built" by adding a charge (or credit) for NOT returning the vehicle to the renting location to a charge (or credit) for dropping it at the returning location. If Alternate Drop charges are NOT set up, the system defaults to the Standard Drops described in this chapter.

The topic of Drop Charges is affected by several different programs in CARS+. For a complete overview of all topics related to Drop Charges, see the chapter Overview - Drop or One-Way Charges. It is highly suggested that you read that chapter before setting up records here.


To access the Edit Drop Charges program, type EDITDRP (RET) at any menu "OPTION:" field or the appropriate line number on the Rental Rates menu. The screen will then display:

OPTION: __ EDIT DROP CHARGES

1 From Location 22 Drop Min Days
2 From Zone 23 Non-Rev time
24 Block Drop
3 To Location 25 Disc Option
4 To Zone 26 Block Two Bookings

5 Drop Category
6 DROP Schedule
7 Effective Date

Rentals less than Charge Miles
8 9 10
11 12 13
14 15 16
17 18 19

20 Notes
21 Termination Date
Modified

1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8

Enter data as follows:

1. FROM LOCATION

Enter up to 6 alphanumeric characters to indicate the Location Code of YOUR location that will be the renting location involved in a one-way rental.

EXAMPLE: Type SNA (RET)


OR

2. FROM ZONE

Enter up to 3 alphanumeric characters to indicate the Drop Zone Code of YOUR zone that will be the renting zone involved in a one-way rental. (Zone must be previously defined in the Edit Drop Zone File.)

EXAMPLE: Type SCA (RET)

NOTE: You must enter data in EITHER Field 1 or Field 2. The record must be from either a location or a zone - it cannot be both.

3. TO LOCATION

Enter up to 6 alphanumeric characters to indicate the Location Code of the destination location. This may be either an owned or foreign location. (Owned locations must be previously defined in the Location File. Foreign Locations must be previously defined in the Customer File.)

EXAMPLE: Type SFO (RET)


OR

4. TO ZONE

Enter up to 3 alphanumeric characters to indicate the Drop Zone of the destination zone. (Zone must be previously defined in the Edit Drop Zone File.) .

EXAMPLE: Type NCA (RET)

NOTE: You must enter data in EITHER Field 3 or Field 4. The record must be to either a location or a zone - it cannot be both.

User Tip: Unlike earlier versions of this program, a single record does not work for rentals going both ways. That is, the same record does not apply to rentals from the "From" location to the "To" location and rentals from the "To" location to the "From" location. Two separate records must be set up to cover that situation. Although that means the creation of more records, hopefully, the new zone concept can be applied to reduce the records required.

5. DROP CATEGORY

If this record applies to a drop category (set up in the Edit Class Code File), enter that category here. So Drop Category is the vehicle class orientation to drop charges. Having a different drop charge for a compact car vs a 12 passenger van is accomplished via Category codes.

EXAMPLE: Type 1 (RET)

6. DROP SCHEDULE

Enter up to 2 alphanumeric characters to assign a Drop Schedule to this Drop Charge record. A particular Drop Schedule can be invoked by the following:

  1. A Privilege Code assigned to a Corporate (CDPID) Contract record. This is linked through the "Drop Schedule" field of Edit Privilege Codes. The logic which applies the drop charge will attempt to find a drop charge record with a Drop Schedule which matches the Drop Schedule code in the Privilege record.

  2. A Drop Schedule applied to the rental rate on the RA. There is a field in the Edit Rental Rules/Rates program to define the Drop Schedule to be used when that rate is on the RA. The logic which applies the drop charge will attempt to find a drop charge record with a Drop Schedule which matches the Drop Schedule code in the Rules record.

So Drop Schedule is the profitability element of drop charges. For special accounts or rental rates the drop is less expensive than with other accounts or rates.

EXAMPLE: Type D4 (RET)

7. EFFECTIVE DATE

Enter the date when this Drop Charge record becomes effective. This may be a date in the past or a date in the future.

EXAMPLE: Type 120110 (RET)

8.-18. RENTALS LESS THAN/ CHARGE

Use these fields for flat fee drop charges. The drop charge can vary based on the chargeable days of the rental. In the first column enter a number of chargeable days. In the middle column enter the drop charge which applies to rentals less than the number of days entered in the corresponding left column.

User tip: Note that these are 'chargeable' days. In the following examples, the rental has an elapsed time of 1 day and 2 hours, the daily rate is $50, and there is no grace period.

A. If the hourly rate is $20, there is 1 chargeable day. (1 day at $50; 2 hours at $20 = $40. Total $90). The hourly charges were not sufficient to round up to a second chargeable day. This is considered a 1-day rental for the drop charge logic.

B. If the hourly rate is $30, there are 2 chargeable days. (Two hours at $30 = $60 which is more than the daily rate of $50. This results in 2 days being charged.) This is considered a 2-day rental for the drop charge logic.


EXAMPLE 1a: Drop charge is not based on length of rental

Drop charge is $100 regardless of length of rental.

The set up for this is as follows:


Rentals less than	              Charge                Miles
8 9 100.00 10
11 12 13
14 15 16
17 18 19
EXAMPLE 2: No drop charge, but "penalty drop charge" feature is being used

Enter data is fields 1 - 7 as appropriate; leave fields 8 - 19 blank.


EXAMPLE 3 - Charge decreases based on length of rental

For rentals 1 - 7 days, the drop charge is $250

For rentals 8 - 14 days, the drop charge is $150

For rentals 15 - 21 days, the drop charge is $50

For rentals 22 or more, no drop charge

The set up for this is as follows:


Rentals less than              	      Charge               Miles
8 8 9 250.00 10
11 15 12 150.00 13
14 22 15 50.00 16
17 18 19
  • It is not necessary to use all four tiers.
  • If the number of days on the rental contract exceed the last level of drop days, the drop charge will be zero.


EXAMPLE 4: - Negative drop charge

For any length rental, the customer is offered a negative drop charge due to the need to move the vehicle to the destination location.

The set up for this is as follows:

Rentals less than	              Charge                Miles
8 9 -100.00 10
11 12 13
14 15 16
17 18 19



8.-19. RENTALS LESS THAN/ MILES

As an alternative to set charges that must each be edited when changes are desired, a set number of miles between the two locations or zones can be entered in the third column instead. This number is then multiplied by the Drop Rate per Mile stored in the location record. As a result, changing the rate in the location file automatically changes all drop charges defined this way. Like the second column, these fields offer the ability to enter multiple mileages so that the Drop Charge can vary based on the length of time that the customer has the vehicle. (Rentals that are longer may not have as many miles attached to them as shorter length rentals.) In the first column enter a number of days. In the third column enter the miles which apply to rentals less than the number of days entered in the corresponding left column.

Note: You are not required to use all four tiers.

EXAMPLE 1

If the distance from LAX to SFO is 400 miles and the drop charge is not to vary by length of rental, enter the data as illustrated below:

Rentals less than     Charge                 Miles
8 9 10 400
11 12 13
14 15 16
17 18 19

As a result, if the rate per mile for the Drop Charge in the location record for LAX is $.50, the calculated Drop Charge will be $200.00. If at a later time you decide to discourage one-ways out of LAX, simply changing the rate per mile to $.80 changes this Drop Charge to $320.00.

EXAMPLE 2

For rentals 1 - 7 days, the drop charge is based on 400 chargeable miles

For rentals 8 - 14 days, the drop charge is based on 300 chargeable miles

For rentals 15 - 21 days, the drop charge is based on 100 chargeable miles

For rentals 22 days or more, there is no drop charge

The above prices would be entered as follows:

Rentals less than     Charge                 Miles
8 8 9 10 400
11 15 12 13 300
14 22 15 16 100
17 18 19

Therefore at fifty cents a mile, the actual charges will be:

For rentals 1 - 7 days, the drop charge is $200.00 (400 X .50)

For rentals 8 - 14 days, the drop charge is $150.00 (300 X .50)

For rentals 15 - 21 days, the drop charge is $50.00 (100 X .50)

For rentals 22 or more, no drop charge

As with the set charge amount, in the event that the number of days on the rental contract exceed the fourth level of drop days, the drop charge shown on the contract will be zero.

Note: If you are enter data in both the Charge column and the Miles column, the system will ignore the mileage. That is a set Drop Charge supersedes a mileage base charge.

Hertz Canada Corporate: This field is used by Hertz Canada corporate locations to enter the distance between the locations. The trip ticket program uses this to calculate a default closing odometer reading for the trip ticket.

20. NOTES

Enter up to 20 alphanumeric characters for a desired warning message. This warning will appear at the bottom of the Reservation and RA Open screens when a one-way transaction is being created between the locations or zones defined above.

EXAMPLE: Type CHECK WITH MANAGER (RET)

21. TERMINATION DATE

Enter the date that this drop charge record will terminate.

Note: There is actually two ways to cause a record to be "terminated". The first method is to replace it with a record with a more recent effective date. By doing that, the previous record becomes ineffective as of the effective date of the new record. Using that method, no date is required in this field.

The second method is through the use of this field. By entering a date here, this record just stops being used as of the date entered. The meaning of that date depends on how the Penalty Drop Charge is defined:

If the Penalty Drop Charge is blank, rentals to the drop location are allowed at no charge as of the termination date.

If the Penalty Drop Charge is not blank, rentals to the drop location are disallowed as of the termination date.

EXAMPLE: Press (RET)

22. DROP MIN DAYS

A. Contracts with more elapsed days than the number entered in this field will have NO Drop Charge applied.

B. Contracts with Daily Rates:

If the elapsed days on the RA are less than the minimum days entered in this field, a calculation is made deducting the elapsed days from the minimum days. The result is multiplied by the contract's daily rate. If the resulting amount is less than the drop charge entered in Fields 9, 12, 15 or 18, it will be used in place of the Drop Charge amount. If it is greater than the Drop Charge, the Drop Charge is used.

Example 1: Assume:

Drop Charge to go from Location A to B = $100.
Drop Minimum Days field= 3 days.
Daily rate on the RA= $65

1. The customer keeps the vehicle 1 day.

The difference between the minimum of 3 and the elapsed of 1 = 2 days. Multiplied by the daily rate of $65, the result is $130. Since the Drop Charge of $100 is less, it is used.

2. The customer keeps the vehicle 2 days.

The difference between the minimum of 3 and the elapsed of 2 = 1 day.When multiplied by the daily rate of $65, the result of $65 is less than the $100 Drop Charge. Therefore, the amount charged for the Drop will be $65; not $100.

3. The customer keeps the vehicle 3 days.

No drop charge.

C. Contracts with Tier Rates

The calculation for the drop charge when a tier rate is used is different than the one used when a daily rate is used (as above). For a tier rate, the following comparison is made:

Calculate the Time charge for the elapsed days and add the drop charge.

Calculate the Time charge if the elapsed days were equal to the minimum days needed to not incur a drop charge. (Number of days in this field.

Charge the customer the lessor of the two and the Drop charge is adjusted accordingly.

Example 2: Assume

Drop Charge to go from Location C to D = $300
Drop Minimum Days field = 5 days
Tier Rate: 1-3 days = $100 per day
4-6 days = $ 80 per day

1. The customer keeps the vehicle 1 day.

1 day at $100 = 100 + $300 drop charge = $400
5 days at $80 = 400 (no drop charge)
Customer is charged $400 ($100 Time and $300 Drop)

2. The customer keeps the vehicle 2 days.

2 days at $100 = 200 + $300 drop charge = $500
5 days at $80 = 400 (no drop charge)
Customer is charged $400 ($200 Time and $200 Drop)

3. The customer keeps the vehicle 3 days.

3 days at $100 = 300 + $300 drop charge = $600
5 days at $80 = 400 (no drop charge)
Customer is charged $400 ($300 Time and $100 Drop)

4. The customer keeps the vehicle 4 days

4 days at $ 80 = 320 + $300 drop charge = $620
5 days at $80 = 400 (no drop charge)
Customer is charged $400 ($320 Time and $80 Drop)

5. The customer keeps the vehicle 5 days

5 days at $80 = 400 (no drop charge)
Customer is charged $400 Time

EXAMPLE: Type 4 (RET)

23. NON-REV TIME

This field is used by the Hertz CARRENT Pre-Print Trip Ticket program. Enter the length of time that it normally takes to move a vehicle between the locations. The trip ticket program uses this to calculate a default due in time for the trip ticket.

24. BLOCK DROP
This field is used to block a one-way rental between the locations, group, or zones specified in the record. There is a field in the User Access Record that can be used to override this block for certain users. Enter:
Y = Yes, block one-ways between this combination.
N or blank = there is no restriction
EXAMPLE: Press (RET)

User tip: There are two fields in the Location record which can be used as follows:

  • Block all one-ways from the location
    Block all one-ways to the location
There is no override for these settings.

25. DISC OPTION
To encourage one way rentals to a desired location, this field allows a discount option to be applied to a drop charge record automatically.

The set up steps involved are:
  • In Edit Optional Items, create a negative option (option type "N")
  • In Edit Option Rates, create an Option Rate record that is percentage based and dependently applied.
  • In Edit Percentage Matrix create a record for the Option specifying which charges on the rental will be subject to the discount.
  • Here in Edit Drop Charges, enter the Option Code in this field.
Note that the rental rate on the transaction must be marked as 'discountable' in Edit Rental Rules/Rates.

EXAMPLE: Enter DISC1 (RET)

26. BLOCK TWO BOOKINGS
This feature is for a specific client that may require two bookings based on their specific demographics. Example: New Zealand has two islands, where bookings can come from the north island and want to return on the south island. Rather than this being a traditional one way rental, this field provides a way to require two separate reservations for each island. One going to the north island and one with the second reservation coming back from the north island to the south island. One from each island. If this field is set to "Y" and a reservation is attempted, a Cars+ message will prompt:
"REQUIRES TWO SEPARATE BOOKINGS FOR EACH ISLAND"
The return location is removed from the reservation.

EXAMPLE: Press (RET)

User Tip: Because of the compound nature of the key to this file (the first seven fields on the screen make up the key to the file), the use of the F/2 function key may be confusing. To the degree that you use all seven fields in the key, the records may appear to be retrieved by the F/2 logic in a random order. If you need to "page through" and edit records in the file, it may be easier to print the contents of the file using the Print Drop Charges program and work from a printed report.

The screen will then display:

OPTION: __ EDIT DROP CHARGES

1 From Location SNA 22 Drop Min Days
2 From Zone 23 NRV time(Mins)
24 Block Drop
25 Disc Option
26 Block Two Bookings
3 To Location
4 To Zone SCAL

5 Drop Category 1
6 Drop Schedule D4
7 Effective Date 06-01-07

Rentals less than Charge Miles
8 8 9 250 10
11 15 12 150 13
14 22 15 50 16
17 99 18 19

20 Notes CHECK WITH MANAGER
21 Termination Date
Modified 05-15-07 0834

1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8

This set of drop charge records:

1. Applies to rentals originating at location SNA to all locations within the zone SCAL.

2. It applies to only those vehicle classes that have been assigned to vehicle drop category "1" and to those renters whose CDPID number has been assigned the Drop Privilege Schedule code "A".

3. Charges will be applied as follows:

If the rental is 1 through 7 days in length, the drop will be $250.00.

If the rental is 8 through 14 days in length, the drop will be $150.00.

If the rental is 15 through 21 days in length, the drop will be $50.00.

If the rental is 22 through 98 days in length, the drop will be zero.

4. This record will apply to rentals that open after 6/1/07.

PRESS "F1" AT "OPTION" TO SAVE THE RECORD.


Deleting Drop Charges

Use the F4 key to delete a drop charge. After pressing F4, the question appears:

ARE YOU SURE?

Enter:

Y = delete the record

N = do not delete the record


After entering "Y" to delete it, another question appears:

DISPLAY NEXT RECORD? Y/N

Enter:

Y = display the next record in the file

N = clear the screen