Hertz 2008 Annual Report Download - page 30

ITEM 1. BUSINESS (Continued)
limits or forbids our doing so. Where we are required or permitted to seek such reimbursement, it is our
general practice to do so. The number of car rental concessions available at airports varies considerably,
but, except at small, regional airports, it is rarely less than four. At Orlando International Airport, where we
do not have a car rental concession, we operate an airport rental location at a facility located near the
airport’s premises and pick up and drop off our customers at the airport under a permit from the airport’s
operator. Certain of our concession agreements require the consent of the airport’s operator in
connection with changes in our ownership. We sought those consents that were required in connection
with our initial public offering of our common stock, except where not obtaining them would not, in our
view, have had a material adverse effect on our consolidated financial position or results of operations.
See ‘‘Item 1A—Risk Factors—Risks Related to Our Business—We face risks related to changes in our
ownership.’’
The Hertz brand is one of the most recognized brands in the world. Our customer surveys indicate that
in, the United States, Hertz is the car rental brand most associated with the highest quality service. This is
consistent with numerous published best-in class car rental awards that we have won, both in the United
States and internationally, over many years. We have sought to support our reputation for quality and
customer service in car rental through a variety of innovative service offerings, such as our customer
loyalty program (Hertz #1 Club), our global expedited rental program (Hertz #1 Club Gold), our one-way
rental program (Rent-it-Here/Leave-it-There), our national-scale luxury rental program (Prestige
Collection), our national-scale experiential rental program (Hertz Fun Collection), our environmentally
friendly rental program (Green Collection) and our in-car navigational services (Hertz NeverLost). We
intend to maintain our position as a premier company through an intense focus on service, quality and
product innovation.
In 2007, we introduced Simply Wheelz by Hertz, a new company under the Hertz brand which offers
leisure travelers faster, easier and more affordable access to popular rental cars. Simply Wheelz offers an
easy-to-use website for reservations and self-service rental machines, or ‘‘kiosks,’’ to rent and return
vehicles. Simply Wheelz is currently accepting reservations in our Orlando, Miami and West Palm Beach
Airports in Florida, the Los Angeles and San Diego Airports in California, the McCarran International
Airport in Las Vegas and Alicante and Malaga, Spain locations.
In late 2008, we introduced Connect by Hertz, a new car-sharing service, which rents cars by the hour at
about two dozen locations in New York, London, Paris and Park Ridge, N.J. Connect by Hertz allows
customers to sign up for the service and start renting cars by the hour. Customers pay an annual or
monthly membership fee, pick up cars in locations scattered around a city without checking in at a Hertz
rental office, and then pay an hourly car-rental fee.
In the United States, the Hertz brand had the highest market share, by revenues, in 2007 and in the first
eight months of 2008 at the approximately 185 largest airports where we operate. Out of the
approximately 170 major European airports at which we have company-operated rental locations, data
regarding car rental concessionaire activity for the year ended December 31, 2008 was available at 42 of
these airports. Based upon this data, we believe that we were the largest airport car rental company,
measured by aggregate airport rental revenues during that period, at those 42 airports taken together. In
the United States, we intend to maintain or expand our market share in the airport rental business. For a
further description of our competitors, market share and competitive position see ‘‘—Competition’’
below.
At our major airport rental locations, as well as at some smaller airport and off-airport locations,
customers participating in our Hertz #1 Club Gold program are able to rent vehicles in an expedited
manner. In the United States, participants in our Hertz #1 Club Gold program often bypass the rental
counter entirely and proceed directly to their vehicles upon arrival at our facility. For the year ended
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