Pricing Myths for Chauffeured Transportation Explained

Transportation Company Pricing Debunked

Pricing for transportation can be confusing, especially because not every transportation company has the same pricing scale for their vehicles. Vehicle pricing is also one of the main decision points that customers use to decide on a company. This article will help clear up some common transportation myths about vehicle pricing.

Myth #1: Vehicle Prices Remain the Same All Year Round

Pricing for the year highly depends on when the popular seasons are for the transportation company. Popular seasons may include events such as weddings, homecomings or proms, or large conventions. Typically, the high traffic season is from April-October, although this may depend on the location’s weather patterns. For example, in hotter areas their popular season may be from October-April. During these popular times of year, transportation companies may have a different price set than their off-season.

Myth#2: The Run Starts Once the Chauffeur Leaves the Garage

Usually, the run does not start until the client gets into the vehicle. Driving time prior to the chauffeur’s arrival to the pickup location does not factor into your total hours. The exception to this would be if there was extreme travel to and from the destination to which travel time would be added on. In some instances, this extreme travel is priced garage to garage, which means that you are charged from when the chauffeur leaves the garage to when they arrive back to the garage.

Myth #3: Transfer Services are Always an All-Inclusive Flat Rate

Transfer service is when a passenger is picked up at one point and taken directly to another point. Typically, there is a 15 minute wait time for the passenger to load the vehicle and be taken to their destination and exit the vehicle. Any delays could cause the transfer service to be charged as an hourly service that would be billed in half hour increments. The specifics of this billing would be determined by the transportation company’s policy. Extra stops en route to destination would accrue extra charges. These extra charges can be accumulated during the transfer and the policies do not apply to hourly reservations, just point to point transfers.

Myth #4: You Can Pay Overtime Charges When You Want

Overtime goes into effect after the scheduled time limit has lapsed. There is a grace period before the overtime charges go into effect. The specific time limit of this grace period may vary by transportation company, but is usually around 10 minutes. The charges for overtime are normally billed by the half hour. Half of the hourly rate and gratuity are due to the chauffeur before overtime occurs. Specifics on this policy may differ, but are fairly common. An exception to this myth may be some corporate clients who are automatically billed for their transportation, to which the overtime fees would be billed after.

Myth #5: Gratuity and Fuel Surcharges are Always Included

Sometimes a vehicle price is too good to be true. Always ask about gratuity and fuel charges, these may be hidden fees that are later tacked on to the price. If the vehicle price seems like a great deal, it usually is not. Most transportation companies will include the gratuity and fuel surcharge in the flat rate for the vehicle. Make sure to do your research when looking for a transportation company. Reputable companies do not try to hide fees from you or surprise you with extra billing. These companies should also have their policies on the above topics in their rental agreement.

Myth #6: You Always Get Your Money Back When You Cancel

Chauffeured transportation companies need to be notified of a cancellation at least 24 hours in advance, in order to receive money back. Your non-refundable deposit, however, is not returned. If you cancel after the 24 hour mark before your reservation then you will be billed for the run. The exact billing breakdown may depend on that transportation company’s specific policies.

Myth #7: You Received a Quote, Therefore That Vehicle is Reserved

Transportation companies require paperwork and a deposit to be paid before your vehicle is reserved. This paperwork usually includes a rental agreement and credit card authorization form. The deposit amount may vary, but is commonly non-refundable, even in the case of a cancellation. There might also have to be a deposit paid per vehicle reserved and this deposit may be lost if you change vehicles. Remember that it is always better to ask about these policies than to assume.

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Posted on October 30th, 2012 in Corporate Travel & Advice, Useful Tips.