Quick Summary:
- A premium location surcharge is an airport fee added to LAX car hire.
- It usually appears as a separate line in price breakdowns.
- Off-airport pick-up may remove the surcharge, but adds travel time.
- Compare airport and off-airport totals, including taxes and transport costs.
When you arrange car hire at Los Angeles International Airport (LAX), you may notice an extra line item that looks like a fee for the privilege of collecting a vehicle at the airport. That line is often called a premium location surcharge (PLS), although the exact wording varies by supplier and by how the quote is presented.
This article explains what the surcharge is, why it exists at LAX, where it shows up on quotes and rental agreements, and whether switching to an off-airport pick-up point can change what you pay overall.
If you are comparing options for car hire at Los Angeles Airport (LAX), understanding this fee helps you judge like for like prices, rather than assuming one supplier is simply “more expensive”.
What a premium location surcharge actually is
A premium location surcharge is a location-based fee that rental companies apply when a vehicle is picked up at certain high-cost, high-demand sites. Airports are the most common example, and LAX is a classic case due to heavy passenger volumes, complex logistics, and airport-specific operating costs.
Although travellers often group it mentally with taxes, it is usually a supplier charge that is then taxed according to local rules. In practice, you can think of it as an extra “airport collection” cost, calculated using a set method that the supplier applies to all qualifying rentals.
At LAX, you might also see other airport-related charges alongside it, such as customer facility charges, concession recovery fees, tourism assessments, or similar items. The names differ, but the result is the same, the airport pick-up can carry extra layers of fees compared with a city location.
Why LAX pick-ups attract extra fees
Airport car hire operations are different from standard city branches. At LAX, rental companies typically need to fund or recover costs such as:
Airport access and concession arrangements. Airports may charge companies for the right to operate on-site or serve airport customers, and those costs are often passed through.
Facilities and customer processing. Even if the desk is not inside the terminal, the rental company still operates dedicated facilities, staff, and systems designed for high throughput.
Transport logistics. Shuttle services, vehicle staging, cleaning cycles, and fleet movement at airports can be more expensive than at smaller city branches.
Higher demand and peak pressure. LAX serves large numbers of arriving passengers at concentrated times. That demand profile can be reflected in fee structures and overall pricing.
The premium location surcharge exists because suppliers and airports structure airport operations differently to non-airport locations. It does not necessarily mean you are being singled out, it is usually a standardised fee applied consistently to qualifying rentals.
Where the premium location surcharge appears on a quote
During the quote stage, the surcharge can show up in several places depending on the supplier and the booking channel. Common patterns include:
A separate line item in the price breakdown. This is the clearest scenario. It may be labelled “Premium Location Surcharge”, “Airport Surcharge”, “Location Service Charge”, or similar wording.
Bundled into “Taxes and Fees”. Some quote displays group multiple items under a single heading. In that case, open the full breakdown if available and look for airport or location-based wording.
Calculated as a percentage or as a daily amount. Many surcharges are computed as a percentage of the base rate, sometimes with minimum or maximum thresholds, or as a fixed daily figure. This is why two rentals with the same duration can show different surcharge totals if the base rate differs.
When comparing car hire options, focus on the total payable and then inspect which parts are base rate versus fees. If one quote looks far cheaper, check whether it is excluding airport-related fees until later in the booking flow, or whether it is quoting for a non-airport branch.
Where it appears on the rental agreement at pick-up
At the counter or kiosk, your rental agreement will typically list charges in a more formal and itemised way. You may see the premium location surcharge as a distinct line, or under a broader “surcharges” or “concession recovery” heading. The contract may also show:
Tax applied to the surcharge. In many cases, taxes are calculated on top of the surcharge, which is one reason the all-in impact can be higher than expected.
Other location fees alongside it. The agreement can include multiple airport-related charges, which is why it helps to read the full schedule before signing.
A calculation basis. Some suppliers specify that the fee is a percentage of time and mileage charges, or a per-day amount. If you extend the rental, the surcharge can change.
If you are collecting at LAX, it is worth asking which charges are location-based versus optional extras. Optional extras include items like additional drivers, fuel options, or cover upgrades, which are separate from airport surcharges.
Does off-airport pick-up remove the premium location surcharge?
Sometimes, yes. If the surcharge is specifically tied to airport pick-up, moving your collection point to a city branch can remove it. However, whether that saves money depends on the full picture.
Here are the main scenarios:
Off-airport branch with no airport fees. If you pick up in Los Angeles away from LAX, you may avoid airport-specific surcharges and certain facility charges. The base rental rate might be similar, or it could differ due to local pricing and fleet availability.
Off-airport branch that still targets airport customers. Some locations are positioned as “near airport” and may still have fees that resemble airport charges, especially if they are heavily used by airport arrivals.
Shuttle or rideshare costs. If you skip airport pick-up, you will need to factor in the time and cost of getting to the branch. In Los Angeles, that can vary significantly depending on traffic, time of day, and distance.
Convenience value. Even where off-airport collection is cheaper on paper, the convenience of collecting after a long flight can justify the airport option for many travellers.
To compare properly, look at total cost, including transport to the branch, and the value of your time. If your priority is the simplest arrival experience, an airport pick-up from car rental at LAX can still be the best fit even with the surcharge.
How to judge whether you can “avoid” the surcharge in practice
There are two meanings of “avoid” here. The first is whether you can remove the fee line item entirely, which may be possible by changing location. The second is whether you can reduce its impact on your budget, even if you still pick up at LAX.
1) Choose a non-airport pick-up location. This is the most direct method, but it is not always practical. It also may change opening hours, vehicle availability, and the ease of returning the vehicle.
2) Compare like for like totals. Some quotes show lower base rates and higher surcharges, others the reverse. A fair comparison uses the total payable for the same pick-up and drop-off points, dates, and vehicle class.
3) Be cautious with one-way changes. Picking up off-airport but returning to LAX can introduce different charges, including one-way fees. The overall total may rise even if the premium location surcharge disappears.
4) Adjust rental duration carefully. Because some surcharges are calculated daily or as a percentage of rental charges, extending by a day can have a compound effect. If you are flexible, compare different pick-up times and rental lengths to see how the final totals shift.
5) Check what is included. A quote with a higher total might include items that another quote lists as payable locally. The surcharge discussion often sits alongside questions about what is included at the desk, so inspect inclusions and excluded charges in the terms.
Typical wording you may see for LAX location fees
Different suppliers use different labels. While you should always rely on the breakdown presented in your quote or agreement, these are common terms that travellers confuse with the premium location surcharge:
Airport surcharge or airport fee. Often the same concept as a premium location surcharge, but named more directly.
Concession recovery fee. A charge associated with operating at an airport under concession arrangements.
Customer facility charge. A fee often associated with airport rental facilities and related infrastructure.
Tourism or transportation assessments. Local or regional assessments that may apply to rentals, sometimes more visible at airports.
When you see several similar line items, the key is not the label but whether it is compulsory and whether it changes by location. If it is location-based, moving off-airport can change it, but not always in the way you expect.
Does the supplier brand matter?
The supplier can affect how surcharges are calculated and displayed, although at airports many charges are influenced by the same environment and rules. The best approach is to compare totals for the same itinerary.
If you are checking supplier-specific options at LAX, you can review details for brands such as National car hire in Los Angeles (LAX). Different suppliers may present the same underlying location costs with different labels, and the base rates can vary significantly by date.
Also pay attention to the pick-up process. LAX operations can involve shuttle transfers to the rental facility and busy arrival peaks. Even when the fee is unavoidable, a smoother experience can be a deciding factor.
What about picking up at Santa Ana instead of LAX?
Some travellers landing in Southern California consider alternative airports, such as Santa Ana (SNA), especially if their final destination is Orange County. If you are not tied to LAX, comparing airports can change both base rates and fee structures.
For example, you can compare Avis car hire at Santa Ana (SNA) or Enterprise car rental at Santa Ana (SNA) to see how different airport locations present their charges. This does not mean SNA is always cheaper, but it illustrates that “airport fees” are not identical everywhere.
How to read a LAX car hire price breakdown quickly
If you want a practical checklist when scanning a quote, focus on these items:
Pick-up location. Confirm it truly says LAX airport, not “near LAX” or a city branch.
Base rate versus fees. Identify the base rental charge and then the surcharges and taxes.
Compulsory versus optional. Airport surcharges are typically compulsory, extras are not.
Pay now versus pay later. Some amounts may be payable locally at pick-up. Make sure you know which items are due when.
Return location. Returning at a different location can introduce one-way fees that outweigh any surcharge savings.
Doing this consistently will help you compare offers for car hire in Los Angeles (LAX) without being misled by differences in how fees are displayed.
So, can you avoid the premium location surcharge at LAX?
If you pick up at LAX, you should generally expect some form of airport or premium location fee to apply, and it is usually not something you can negotiate away at the counter. The realistic ways to reduce or remove it are structural, mainly by changing where you collect the vehicle.
That said, “avoiding” the surcharge does not always reduce your true trip cost. An off-airport branch might remove the line item, but you may spend more on transport, lose time, or face different pricing and availability. The most reliable approach is to compare the all-in total for your exact plans, then decide whether the convenience of LAX pick-up is worth the premium.
FAQ
Is a premium location surcharge the same as an airport tax? Not exactly. It is often a supplier location fee linked to airport pick-up, and it may be taxed, but it is not always a government tax.
Will the surcharge be included in the online total for LAX car hire? It depends on the quote display. Sometimes it is itemised, sometimes grouped under taxes and fees, so check the full breakdown.
If I pick up off-airport in Los Angeles, will I always pay less? Not always. You might remove airport fees, but transport costs, time, and different branch pricing can offset the savings.
Can I ask the rental desk to remove the premium location surcharge? Typically no. It is usually a standard mandatory charge tied to the pick-up location and applied consistently.
Does returning the car to LAX add the premium location surcharge? The surcharge is usually linked to pick-up, not return, but different return locations can add other fees. Always check the contract terms.
