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Idaho Falls airport recommends Enterprise‑linked bids after RFP; city projects higher rental revenue
Summary
Airport Director Ian Turner told the City Council a new rental‑car RFP produced bids from Enterprise, National/Alamo and Overland West (Hertz) and that selecting the Enterprise‑linked proposals would raise rental revenue next year while the city restructures rates and space allocation.
Airport Director Ian Turner told the Idaho Falls City Council on Nov. 15 that the airport’s long‑running on‑airport car rental agreements — initiated in 2015 and extended year‑to‑year after expiring in 2020 — needed wholesale updating to correct outdated terms and to separate rental‑car charges from airline (terminal) rates.
Turner said the city issued a request for proposals in September, received proposals by Nov. 6 and opened bids Nov. 7. He reported three successful respondents from two entities: Overland West (operating Hertz), Enterprise Rent A Car Company of Utah LLC (operating Enterprise and National) and a National/Alamo entry. Turner said Enterprise ranked highest by bid value.
Why it matters: Turner said the city has been effectively subsidizing airline terminal rates with parking revenue and that charging rental operators a fairer, market‑based rate is necessary. He said the customer facility charge will move to $6 per transaction day under the new agreement — up from $4 in 2024 and $2.50 in 2023 — a change Turner described as within the middle third of peer airports.
Turner presented revenue figures showing current total rent revenue of $194,932.68 and a projected 2026 rent revenue of $218,075.16, which he said represents an 11.9% increase; in a fuller space allocation scenario he estimated revenue could rise to roughly $302,511.58 (about a 55% increase) depending on which spaces incumbents take and how supplemental space is awarded.
Councilors asked whether losing an on‑airport brand (for example, if Hertz or Avis did not participate) could push loyalty customers offsite and harm the airport’s competitiveness. Turner said that, while off‑site options create an inconvenience, the RFP was structured to allow smaller brands and additional brands to participate and that the three‑year term limits long‑term lock‑in as the market and airport grow.
Turner said one incumbent (Avis/Budget) submitted an untimely proposal and therefore was not accepted; he reported supplemental bids for the remaining unawarded space with three‑year totals including Avis Budget Group’s $219,128.82 and Enterprise’s $254,971.98. Turner said his intention, absent council direction to the contrary, is to move forward with the Enterprise supplemental bid because it maximizes near‑term revenue while treating incumbents equitably.
Next steps: Turner said the new agreements would begin Feb. 1, 2026, and that Enterprise’s signature was due by Thursday, Nov. 18; staff proposed putting the executed contract on the consent agenda once signed. The council indicated no substantive objections to the path Turner recommended.
"The bottom line, across the airport, we just need more space for almost all of our operators," Turner said when explaining the need to rebalance space.
The council did not take a formal vote on the concession awards during the work session and will consider finalized contracts at a future meeting when signed by respondents.
