Dollar Rent A Car 2011 Annual Report Download - page 15

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Information Systems
The Company depends upon a number of core information systems to operate its business, primarily its counter automation, Internet Web sites, distribution
network, rate and reservation systems, fleet and revenue management systems. The counter automation system in company-owned stores processes rental
transactions, facilitates the sale of additional products and services and facilitates the monitoring of the fleet and financial assets. The Company also relies on
a revenue management system that enables the Company to better determine rental demand based on current and historical reservation patterns and adjust its
rental rates accordingly. The Company’s Internet Web sites and various distribution networks allow the Company’s products to be marketed and reserved
directly or through our various channel partners.
The Company continues to invest in new business system capabilities to facilitate operations and reduce ongoing operating costs. In 2011, the Company
continued to deploy new counter automation capabilities, redesigned and enhanced key distribution capabilities and upgraded the revenue management system
to incorporate new products and handle greater volumes. The Company also deployed newer technologies, consolidated platforms and renegotiated key
supplier agreements that helped reduce ongoing information technology (“IT”) operating cost.
Hewlett-Packard Company (“HP”) provides the majority of the Company’s IT services, including applications development and maintenance, network,
workplace and storage management, back-up and recovery and mid-range hosting services. HP also manages and monitors the majority of the Company’s
data network and its daily information processing. The Company’s counter automation, reservations, revenue management, Internet Web sites and fleet
processing systems are housed in a secure underground HP facility in Oklahoma designed to withstand disasters.
U.S. franchisees receiving a certain volume of reservations are required to use an approved automated counter system. In addition to providing an electronic
data link with the Company’s worldwide reservations centers, the automated counter system produces rental agreements and provides the Company and its
franchisees with customer and vehicle inventory information, as well as financial and operating reports.
Fleet Acquisition and Management
Vehicle Supply
The Company has vehicle supply agreements with both Chrysler and Ford covering vehicle purchases through the 2012 and 2013 model years, respectively,
and has a vehicle purchase agreement with General Motors covering vehicle purchases through the 2012 model year.
For the 2011 model year, Ford, General Motors and Chrysler vehicles represented approximately 52%, 27% and 16%, respectively, of the total U.S. fleet
purchases by DTG Operations. The Company expects that for the 2012 model year Chrysler, Ford and General Motors will represent approximately 35%,
26% and 14%, respectively, of total U.S. fleet purchases of DTG Operations.
Vehicle Residual Value Risk
Vehicle depreciation is the largest single cost element in the Company’s operations, and is dependent upon the ultimate residual values of vehicles in the fleet,
in addition to the overall mix of Program and Non-Program Vehicles.
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