Car rental fees in Hawaii Airports increase

From the usual $1 a day, car rental fees will increase to $4.50 daily in the four airports of Hawaii beginning September of this year. This was pushed by state airport officials and car rental agencies in line with the objective of financing a plan of building consolidated car hire facilities in the airports of Honolulu, Kahului, Hilo and Lihue which is budgeted at $497 million.
The $4.50 fee, which was approved early this year by the Legislature, will be effective for the next twenty years or so.
The goal of the centralized facilities is to provide better customer services at lower costs. Director Brennan Morioka of the state Transportation Department further mentioned that the customers will benefit through savings in terms of reduced rates.
With this strategy, it is estimated that $50 million will be raised annually. The $229 million will finance a four-level car rental facility at the Honolulu Airport which will rise on the area where the Avis, Budget, Dollar, Hertz and National currently share an open lot at the Diamond Head end-portion of the Airport.
Similar facilities are planned for Kahului Airport for a budget of $190.5 million and slightly smaller ones for Hilo and Lihue Airports. These facilities could start operations in 2013 if the project can get started on time.
However, Reg White, a tourism executive, raised the issue of whether there is really a genuine need for a $299 car rental facility in Honolulu. He commented that money could otherwise be used for the improvements of tour operators, restaurants and other facilities that cater to tourists. White is the VP for Project Development for Paradise Cruise Ltd., operators of the Star of Honolulu.
In defense, the General Manager for Operations of Hertz Hawaii, Aaron Medina, emphasized that this new facility will enhance security and comfort for airport passengers and customers since they will not have to wait outside to rent vehicles. Medina further stressed that the construction of centralized car rental facilities is a part of a trade trend which would allow agencies to share resources in connection with customer services.
According to Medina, customers who are not amenable to pay the $4.50 fee may opt to rent car facilities offered by agencies that are not located on the Airport property and are therefore not part of the fee hike. Medina also sits as President of a non-profit trade group Catrala-Hawaii which represents major car rental firms.
It is worthy to note that similar centralized car facilities are already in place in mainland airports such as the Anchorage in Alaska and Fort Lauderdale in Florida. Some $170 million was spent in Las Vegas and $419 million in Seattle, Tacoma Airport for such facilities.
A feasibility study was done by the state and accordingly, Honolulu car rental agencies would get about one car hire business day from every five airline passengers to Oahu. It remains to be seen if this number changes once the higher fees take effect.