Premium Location Charge (PLC)

What Is a Premium Location Charge (PLC)?

A premium location charge (PLC) is an additional fee applied to car rental services located at high-demand or convenient spots, such as airports or city centers.

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:

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.

Glossary Image: Premium Location Charge Car Rental

Why Do Rental Companies Apply Premium Location Charges?

Rental companies apply premium location charges for several reasons:

Image of a busy airport

Common Locations with Premium Location Charges

Premium location charges are typically applied at:

How Much is the Premium Location Charge?

The amount of the PLC can vary significantly depending on:

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

A business traveler picks up his rental car.

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:

Tips to Avoid or Minimize Premium Location Charges

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

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

Frequently Asked Questions

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