Chauffeured Services vs. Car Rentals

Charles Dwyer, Ph.D., and professor of Education at the University of Pennsylvania’s Wharton School travels over 150,000 miles every year. He believes much of the thought process that goes into selecting a chauffeured vehicle over a rental car or taxi is psychological. “The entire focus of a business trip is different when I know I have a chauffeured car waiting for me, “ he says. “My comfort level and my overall outlook on the day is entirely different. I can focus on why I made the trip, whether I have a speech or a meeting, etc. I can get in the back of the car and either work or relax. Renting a car and finding my way out of an airport or wondering if my taxi will be on time really produces tension and anxiety."

According to Dwyer, there are hidden costs when estimating the expense of a rental car. “It costs to park your vehicle at the hotel,” he says. “I have stayed in luxury hotels where this can be over $20 per day. You have to factor in the extra insurance costs, as well as the re-fueling charge. I have paid as much as $4.89 for a gallon of gas. Also, a quote from a rental car company never resembles its final bill.”

The following figures illustrate how cost intensive renting a vehicle can be for a company:
Executive’s Hourly Salary	$93.21
Daily Car Rental Rate	$65
30 Minutes of Executive’s Time to Rent Car	$46.81
90 Minutes of Executive’s Time to Locate Destination	$140.43
Parking	$5
60 Minutes of Executive’s Time to Drive to Airport	$93.21
30 Minutes of Executive’s Time to Return Car	$46.81

Total cost of car rental	$397.26

An executive earning $75,000 per year can also save his or her company money by hiring chauffeured transportation. This executive makes about $70 per hour. If he or she were to rent a car, the company would still spend about $315. While savings is less, the executive will still be that much more productive.

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