Study guide
Module 06: Car rental
Overview of the car rental industry
The car rental industry forms part of the transport sector in tourism.
It provides tourists and business travellers with vehicles for short- or long-term use.
Car rental allows tourists to travel independently and flexibly.
Major car rental companies in South Africa include:
o Avis
o Budget
o Europcar
o Hertz
o Tempest
o First Car Rental
Conditions for renting a vehicle
Renter must meet the minimum age requirement set by the company.
A valid driver’s licence is required.
The renter must be creditworthy.
A credit card is usually required in the driver’s name.
The renter must sign a rental contract agreeing to the terms and conditions.
Rental packages and options
Vehicles can be rented on a:
Daily basis
Weekly basis
Long-term basis
Rental options may include:
Limited or unlimited kilometres
Different vehicle categories (economy, sedan, SUV, luxury)
One-way rentals
Optional extras may be added to the rental agreement.
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Insurance options
CDW (Collision Damage Waiver):
o Limits the renter’s liability if the vehicle is damaged.
TLW (Theft Loss Waiver):
o Limits liability if the vehicle is stolen.
SCDW (Super Collision Damage Waiver):
o Reduces or removes the excess payable for damage.
STLW (Super Theft Loss Waiver):
o Reduces or removes the excess payable for theft.
PAI (Personal Accident Insurance):
o Covers injury or death of the driver and passengers.
Additional costs and charges
Tourism levy
Fuel deposit or fuel charges
Airport surcharge
Additional driver fee
Contract or administration fee
Delivery and collection charges
Cross-border fees
Optional equipment (GPS, child seats)
Incidental costs
Administration fees charged for accidents
Traffic fines issued to the renter
Handling fees related to traffic fines
Payment options and methods
Credit card payments (most commonly required)
Debit card payments (subject to conditions)
Online booking and prepayment options
Refunds and deposits handled according to company policy
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Terminology
Key terminology
The following terms are used in the module. Use the following terms often to improve the learner’s
tourism discourse.
1 Car rental The process of hiring a vehicle for a short period, usually for
travel or business purposes.
2 Rental agreement A contract between the renter and the rental company outlining
the terms and conditions of the rental.
3 Rental packages Different pricing options offered by rental companies, such as
unlimited mileage or daily rental rates.
4 CDW (Collision Damage A type of insurance that reduces the renter’s financial
Waiver) responsibility for damages to the rental vehicle in case of an
accident.
5 TLW (Theft Loss Waiver) Insurance coverage that limits the renter’s liability in case the
rental vehicle is stolen.
6 SCDW (Super Collision An upgraded version of CDW that further reduces the excess
Damage Waiver) amount payable in case of damage.
7 STLW (Super Theft Loss An enhanced version of TLW that minimizes the renter's liability
Waiver) for theft.
8 PAI (Personal Accident Insurance that provides medical coverage for the renter and
Insurance) passengers in case of an accident.
9 Tourism Levy A government-imposed fee charged on car rentals to support
tourism initiatives.
10 Fuel deposit A refundable fee charged upfront to cover fuel costs if the car is
returned with less fuel than required.
11 Airport surcharge An additional fee charged when renting a car from an airport
location.
12 Additional driver fee A fee charged for allowing another person to drive the rental car.
13 Cross-border fee A charge applied when taking a rental vehicle across
international borders.
14 Incidental costs Unexpected additional expenses like administration fees for
accidents or traffic fines.
15 Payment options The different ways a renter can pay for a car rental, such as
credit card, debit card, or corporate account.
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