Power Report: When convenience comes at a heavy price

We all love convenience. If we can get something done more quickly and simply, it is a no-brainer.

And, when it comes to transacting online - if we can do things in one place, what a bonus, right? Not always. The mistake we make is assuming the most expedient way is likely the most cost-effective way.

When Cape Town businessman Pieter Streicher booked his SA Express return flight to Port Elizabeth on the Flysaa.com website, he also clicked on its car-rental link to secure wheels for his five-day trip.

Following the airline's temporary grounding three weeks ago, his return flight was cancelled and Streicher had to drive the 750-odd kilometres home.

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He informed Hertz of his predicament and accepted the R800 charge for dropping the car off in another region (Cape Town). But it was only when he saw the final bill, and compared it with a quote from Hertz, that he realised how bad his Flysaa deal was.

Said Streicher: "My quote via Flysaa only had 100km free per day, and then charged R6/km for every extra kilometre - because I drove back to Cape Town, I had to pay for 580 extra kilometres - R3480!"

Booking the same car from Hertz directly would have given him 200km free a day, with just R3.33 per extra kilometre. Plus, Streicher's daily rate worked out to around R350; the direct quotes he received came in under R300.

The Flysaa deal cost him R7039, where he could have paid around R2500 had he booked directly.

"That's R4500 extra for exactly the same car at the same rental company," said Streicher. "How is it possible that it's more expensive in every single aspect? Fewer free kilometres per day, double the extra-kilometre rate and more expensive per day."

When he complained to Hertz, it replied that it was not responsible for clients' "choices" and that its website and call centre were available to make reservations.

No sympathy, no explanation.

"I never intended to drive far, so I did not pay attention to the exorbitant R6 per km rate," said Streicher. "I just assumed the Flysaa deal was the same, or better."

And who can blame him?

The Flysaa site claims consumers can get "the best car-rental deal when booking at the same time as your flights, saving you time and money".

After I contacted Hertz, it apologised for its initial "insensitive and incomplete response". And because it valued his feedback, and "continued custom", it would credit his card with R1500, it said. Turns out every booking through the Flysaa site carries a dollar-based fee which "impacts on rental bookings overall, more so on short-term rentals".

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Sherl Camera, Hertz's general manager of business development, said Flysaa was linked to Global Distribution System rates loaded in the international Hertz system.

The GDS is a computerised reservation network used by travel agents and online reservation sites for reserving airline seats, hotel rooms and rental cars.

"We will review the additional per-kilometre rate linked to this external booking platform and see how this might be adjusted," she said. Certain booking channels "carried a cost to have Hertz represented. A direct booking is [generally] the most cost-efficient option."

What was the US-based fee, and did Flysaa charge Hertz to be carried on its channel?

"The fee structures of the various booking platforms are complicated and also confidential ... on some channels we pay a booking fee per reservation and we have to build these fees into our costing."

Camera said that when Streicher contacted the Hertz call centre, he should have asked to have his contract changed.

Streicher said his case was an important lesson for consumers: "Booking directly can be significantly cheaper under certain circumstances."

Hertz SA had previously run campaigns to let customers know that direct bookings were "generally" the most cost-effective option, Camera said.

"In view of Mr Streicher's experience, we will be revisiting this communication strategy."

I'll be watching out for that.

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