Damage Control for Disappointed Customers: Costly SUV Upgrade to a Ford Excursion

Steven Chan, a consultant from Oakland, California, was surprised when he picked up his rental car from Budget in Seattle over Easter weekend. He had reserved a full-size car, but the rental agent told him he could upgrade to a Ford Excursion for an additional $25 a day. "She told me it was easy to drive," Mr. Chan reported. "But when I saw it, I realized it was huge-like a tank. You could fit a full-size bed inside."

On his trip Mr. Chan managed to scratch the paint and damage the rear-door step. He didn't worry, though, because he thought the damage would be covered since he had charged the rental on his American Express card. He knew that the company offered backup car rental insurance coverage. To his dismay, he discovered that its car rental coverage excluded large SUVs. "I just assumed they'd cover it," he confessed. He wrote to Budget to complain about not being warned that certain credit cards may not cover damage to large SUVs or luxury cars.

Budget agents always encourage renters to sign up for Budget's own "risk product." But they don't feel that it is their responsibility to study the policies of customers' insurance carriers and explain what may or may not be covered. Moreover, they try to move customers into their rental cars as quickly as possible and avoid lengthy discussions of insurance coverage. Customers who do not purchase insurance are at risk. Mr. Chan does not make any claim against Budget, but he is upset about being "pitched" to upgrade to the larger SUV, which he didn't really want.

Your Task. As a member of the communication staff at Budget, respond to Mr. Chan's complaint. Budget obviously is not going to pay for the
SUV repairs, but it does want to salvage his goodwill and future business. Offer him a coupon worth two days' free rental of any full-size sedan.
Write to Steven Chan, 5300 Park Ridge, Apt. 4A, Oakland, CA 93578.