Quick Summary:
- A premium location surcharge is an airport-specific fee added by suppliers.
- It usually appears under taxes, surcharges, or location fees in quotes.
- The amount varies by airport, supplier, and rental length, so totals change.
- Compare like-for-like totals and check whether it is included upfront.
When you compare car hire prices for Los Angeles, the headline daily rate can look reassuringly low, then the total jumps once you reach the price breakdown. One of the most common reasons is something called a premium location surcharge. It is not unique to Los Angeles, but it is especially noticeable at major airports like LAX because airport operations are expensive and tightly regulated.
This article explains what the surcharge is, where you will typically see it on an airport car hire quote, and why it can change the total price even when the base rate looks similar across providers.
What a premium location surcharge actually is
A premium location surcharge, sometimes shortened to “location surcharge” or “airport surcharge”, is a fee applied by the car hire supplier for rentals that start (and sometimes end) at high-cost locations. Airports are the most common example. The surcharge helps the supplier recover the extra costs of operating there, such as airport concession fees, transport to off-airport lots, staffing, and facility requirements.
In Los Angeles, LAX rentals often involve additional logistics, including dedicated facilities, shuttle buses, and compliance with airport rules. Those costs are not always built into the base rental rate you see first, so the premium location surcharge is added separately in the quote breakdown.
It is worth noting that the name is not standardised. Two quotes can include essentially the same kind of fee, but label it differently. That is why understanding where to look is more useful than memorising one term.
Where the surcharge appears on airport car hire quotes
On a typical airport car hire quote, the premium location surcharge may appear in a few common places:
1) In the “Taxes and fees” section
Many quotes group airport-related charges into a combined bucket. This can make the daily rate look clean, but it also makes it harder to see what is driving the total.
2) As its own line item
Some suppliers show it clearly as “Premium Location Surcharge” or “Location Service Charge”. This is the easiest scenario for comparing across quotes, because you can see whether one supplier is applying a higher location fee than another.
3) Rolled into an “Airport concession fee” style line
At certain airports, you may see airport concession or facility style charges. These can be separate from a premium location surcharge or used as the supplier’s preferred label for a similar cost. The practical effect is the same, it raises the total for airport pick-up.
4) Included in the total but not highlighted
Some displays show “total price includes taxes and fees” without listing every subcomponent in the first view. In this case, you have to expand the breakdown to see the surcharge and understand why the total differs from another quote.
If you are checking Los Angeles airport options, the most reliable approach is to open the full breakdown for each car hire quote and look for any location or airport-specific fee lines before you decide what is best value.
Why it changes the total price, even with similar daily rates
Two car hire quotes can share a similar base rate and still produce different totals once the premium location surcharge is accounted for. Here are the main reasons it varies.
Supplier pricing models differ
One supplier may build more airport cost into the base rate and show a smaller surcharge. Another may advertise a lower base rate but add a higher location fee later. The only meaningful comparison is the final total including all mandatory charges.
It can be calculated per day, per rental, or as a percentage
Depending on the supplier and local rules, the surcharge might scale with rental length, be a fixed amount, or be tied to the rental charge. That means a three-day rental and a ten-day rental can show a different relationship between base price and surcharges.
Airport vs off-airport pick-up
Premium location surcharges are most associated with airports. If you choose a non-airport pick-up point in the wider Los Angeles area, the fee may be lower or not applied. This is one reason why travellers sometimes see a notable difference between “Los Angeles airport” and “Los Angeles city” totals, even for similar vehicles.
Different terminals and facility arrangements
At LAX, car hire operations may be tied to specific facilities and transport arrangements. When operational costs change, suppliers adjust fees. You might not notice this in advance, but it can explain why a quote this month differs from a quote you saw earlier.
How to spot it when comparing LAX quotes
When you are comparing car hire in Los Angeles, focus on a simple routine: check the total, confirm what is included, then read the fee lines that are mandatory. The premium location surcharge is mandatory for airport pick-up where it applies, so it should be included in the payable total.
If you are looking specifically at airport pick-up, starting with a dedicated LAX page can make it clearer that you are comparing like-for-like airport rentals rather than mixing airport and off-airport pricing. For example, you can review airport-focused options through car hire at Los Angeles LAX and then compare how each quote presents the airport-related charges.
Also consider whether you are switching between similar but not identical pages or suppliers. A quote from one supplier at LAX might be structured differently from another, even if both are for an equivalent vehicle class. Checking supplier pages can help you stay consistent when you compare. You can see examples of supplier listings for LAX, such as Alamo at LAX and Enterprise at LAX, then verify how each displays location-related charges in the breakdown.
What the surcharge is not
Because the wording is confusing, it helps to separate a premium location surcharge from other common car hire costs that may also appear on airport rentals:
It is not the security deposit
A deposit is typically pre-authorised on a payment card and released after the rental, subject to the supplier’s terms. A premium location surcharge is part of the rental price itself.
It is not optional cover
Insurance products and excess reduction options may change the total, but a premium location surcharge is usually a mandatory fee tied to the pick-up location.
It is not a fuel charge
Fuel policies vary, but the premium location surcharge is not a refuelling fee and does not relate to how you return the car.
It is not a young driver fee
Age-based fees are separate and depend on driver age. Location surcharges depend on where you pick up.
Does it apply only at LAX, or across Los Angeles?
The surcharge is most visible at LAX because it is a major airport location. However, the underlying concept can apply at other high-cost pick-up points, including some busy transport hubs. If you are comparing alternatives, it can be useful to check another nearby airport to see how the location fees differ. For instance, car hire at Santa Ana (SNA) can show different fee structures, even though it serves the broader Southern California area.
That does not automatically mean one airport is “cheaper” overall, because base rates, availability, and vehicle classes differ. It simply gives you a clearer sense of how much of your total is driven by airport-specific charges.
Can you avoid the premium location surcharge?
You can sometimes reduce or avoid it, but only by changing the rental scenario, not by selecting a checkbox. Common approaches include:
Choosing an off-airport pick-up location
If you pick up away from the airport, the supplier may not apply an airport location surcharge. The trade-off is time and transport cost to reach the location, plus the convenience factor if you are landing with luggage.
Comparing total costs across suppliers at the same airport
You cannot remove the surcharge if you still pick up at LAX, but you may find that one supplier’s overall total is more competitive once all mandatory fees are included.
Adjusting rental length and timing
If the surcharge is calculated per day or as a percentage of the rental charge, changes to rental length or seasonal base rates can change the final amount you pay. You will not always see a linear relationship.
Why some quotes look “all-inclusive” and others do not
One of the most frustrating parts of car hire comparisons is inconsistent presentation. Some quotes show an all-in total early, while others emphasise a low daily rate. Neither approach is automatically better, but it does mean you should standardise your comparison method.
If you are looking at a page that focuses on LAX rentals, such as Los Angeles LAX car rental, the key is to confirm whether the displayed price already includes taxes and location surcharges, or whether the site is showing a base rate before mandatory fees. Expand the details, then compare final totals for the same dates, times, vehicle class, and mileage policy.
For larger vehicles, the difference can feel even bigger because percentage-based fees rise with a higher base rental charge. If you are pricing people carriers, check the breakdown carefully when browsing options like minivan hire at LAX, as airport fees can compound on top of a higher daily rate.
Practical checklist before you commit to a total price
Before you settle on a car hire option at Los Angeles airport, run through these quick checks in the quote breakdown:
Confirm pick-up location, ensure it really is “airport” and not a nearby city office, unless that is what you want.
Look for any line mentioning location, premium, airport, concession, or facility, and note whether it is a fixed fee, per-day charge, or percentage.
Check what is included in the payable total, especially if the page highlights a daily figure more than the final amount.
Compare like with like, same dates, times, vehicle class, and any one-way routing, so differences in surcharges are not masked by other changes.
Doing this turns the premium location surcharge from an unpleasant surprise into a predictable part of the airport pricing model.
FAQ
What is a premium location surcharge on Los Angeles airport car hire?
It is a mandatory fee added by the supplier for picking up (and sometimes returning) a rental vehicle at a high-cost location such as LAX, reflecting airport-related operating and concession costs.
Where will I see the premium location surcharge on my quote?
It may appear as its own line item, or inside a broader “taxes and fees” section. Look for wording that includes location, premium, airport, concession, or facility charges.
Is the premium location surcharge the same for every supplier at LAX?
No. Suppliers can calculate and present it differently, and some may embed more of the cost in the base rate. Always compare the final total including mandatory fees.
Can I avoid paying a premium location surcharge?
Usually only by choosing an off-airport pick-up location. If you pick up at LAX, the surcharge is typically unavoidable, though the total cost can still vary by supplier and dates.
Why did my total change when I extended my rental?
If the surcharge is charged per day or calculated as a percentage of rental charges, extending the rental can increase it. Seasonal base-rate changes can also affect percentage-based fees.
