Denver International Airport (DEN) is proposing to increase the Customer Facility Charge (CFC) paid on daily rental car transactions for all on-airport rental car companies. Rental car customers currently pay $2.15/day (among the lowest of all major airports) and DEN is proposing to increase the fee to $6/day, which is the airport market average. The CFC has been in place at DEN since the airport opened in 1995 and has been $2.15 since 2013. CFCs are primarily paid by out-of-town visitors who rent cars at DEN
The CFC is used at most U.S. airports for purposes of funding planning, facilities maintenance and management of the rental car programs. DEN plans to incrementally increase the CFC rate to be more in line with other major airports and to fund potential future improvements. One project DEN is currently evaluating is a future consolidated rental car facility (ConRAC). Most other large U.S. airports have moved to a ConRAC for increased customer service, efficiency and sustainability as transport to the facility could be consolidated either through shuttles or another form of transportation. A ConRAC would allow DEN to better adapt to changing market shares within the rental car industry as space would be flexible and easier to size up or down. Additionally, it would enhance the customer experience by becoming a one-stop-shop for rental cars. Once a determination is made as to whether DEN plans to move ahead on a ConRAC project at some point in the future, any further adjustment to the CFC rate will be evaluated.
The proposal would raise the CFC beginning Feb. 1, 2023. The increase to $6/day is consistent with the industry average for large hub airports. DEN currently has the one of the lowest CFC rates in the country, the highest non-capped CFCs include Seattle-Tacoma International Airport at $7/day, Chicago O’Hare International Airport at $8/day and Newark Liberty International Airport at $9.93/day.
This is an incremental increase in the CFC rate as evaluation is being performed on the overall ConRAC project, which includes accessing the Jeppesen Terminal and roadway access. Once determination is made on the overall project, any further adjustment to the CFC rate will be evaluated.
“DEN continues to expand to prepare for 100 million annual passengers in the next 8-10 years,” said DEN CEO Phil Washington. “By moving the various airport rental car companies to one location, consolidating or eliminating busing and improving the security of vehicle storage, we can create a much-improved experience for our customers as the airport continues to grow and modernize for the future.”
To read more about the rule change or learn how to submit comments about the proposed CFC increase visit https://www.flydenver.com/about/administration/drafts_ rules_regulations.
