Hertz 2007 Annual Report Download - page 37

which concession or off-airport permit fees are determined for the indicated periods. Complete market
share data is not available for any date later than for the eight months ended August 31, 2007.
Eight
Months
Ended Years ended December 31,
August 31,
2007 2006 2005 2004 2003 2002 2001
Brand Name
Hertz ......................... 27.9% 28.5% 29.2% 29.6% 29.0% 29.2% 29.5%
Avis .......................... 19.9 19.8 20.2 20.2 21.2 22.3 21.6
Budget ........................ 10.4 10.3 10.5 10.2 10.4 10.8 11.8
ABG Brands(1) ................. 30.3 30.1 30.7 30.4 31.6 33.1 33.4
National/Alamo(2) ................. 19.4 19.7 19.4 19.8 20.8 21.8 25.4
Enterprise ...................... 8.2 7.7 7.0 6.0 5.0 3.9 2.0
Enterprise Brands .............. 27.6 27.4 26.4 25.8 25.8 25.7 27.4
Dollar ......................... 7.2 7.1 7.1 7.7 7.4 7.2 7.1
Thrifty ......................... 4.4 4.4 4.3 4.5 4.4 3.2 1.8
DTG Brands ................... 11.6 11.5 11.4 12.2 11.8 10.4 8.9
Other ......................... 2.6 2.5 2.3 2.0 1.8 1.6 0.8
Total .......................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
(1) ABG acquired all of the outstanding shares of Avis Group Holdings, Inc. on March 1, 2001 and acquired substantially all of
the domestic assets of the vehicle rental business of Budget Group, Inc. on November 22, 2002.
(2) National and Alamo were purchased by Enterprise in August 2007.
The U.S. off-airport rental market has historically been dominated by Enterprise. We now have a
significant presence in the off-airport market, and ABG’s brands also are present. Many smaller
companies also operate in the airport and off-airport rental markets.
In Europe, in addition to us, the principal pan-European participants in the car rental industry are Avis
Europe plc (which is not an affiliate of ABG but is operating under a license from ABG), which operates
the Avis and Budget brands, and Europcar, which was acquired from Volkswagen AG by Eurazeo in
2006. Europcar also operates the National Car Rental and Alamo brands in the United Kingdom and
Germany, and through franchises in Spain, Italy and France. In certain European countries, there are
also other companies and brands with substantial market shares, including Sixt AG (operating the Sixt
brand) and Enterprise (operating the Enterprise brand) in the United Kingdom, Ireland and Germany. In
2006, Europcar acquired the European business of Vanguard Car Rental Holdings LLC or ‘‘Vanguard,’’
(which previously operated the National and Alamo brands) and entered into an agreement relating to a
trans-Atlantic alliance with Vanguard. In every European country, there are also national, regional or
other, smaller companies operating in the airport and off-airport rentals markets. Apart from Enterprise-
branded operations, all of which Enterprise owns, the other major car rental brands are present in
European car rental markets through a combination of company-operated and franchisee- or licensee-
operated locations.
Competition among car rental industry participants is intense and frequently takes the form of price
competition. For the year ended December 31, 2007, based on publicly available information, we believe
some U.S. car rental brands experienced transaction day growth and rental rate revenue per transaction
day, or ‘‘RPD,’’ increases compared to comparable prior periods. For the year ended December 31,
2007, we experienced a low to mid single digit volume increase versus 2006 in the United States, while
17