Hertz 2008 Annual Report Download - page 32

ITEM 1. BUSINESS (Continued)
forward, our determination of whether to continue to expand our U.S. off-airport network will be based
upon a combination of factors, including the concentration of target insurance company policyholders,
car dealerships, auto body shops and other clusters of retail, commercial activity and potential
profitability. We also intend to increase the number of our staffed off-airport rental locations
internationally based on similar criteria.
In addition to renting cars, in Germany we also rent trucks of approximately eight tons and over,
including truck tractors. This truck rental fleet consists of approximately 2,600 vehicles, which have
either been acquired under repurchase programs similar to those under which we purchase program
cars, or are under operating leases. Also, we are engaged in the car leasing business in Brazil and
Australia. Our truck rental activities in Germany and our car leasing activities in Brazil and Australia are
treated as part of our international car rental business in our consolidated financial statements.
Our worldwide car rental segment generated $6,858.2 million in revenues and $385.3 million in loss
before income taxes and minority interest during the year ended December 31, 2008.
We may also, from time to time, pursue profitable growth within our car rental business by pursuing
opportunistic acquisitions, which may be significant, that would expand our global car rental business.
Customers and Business Mix
We categorize our car rental business based on two primary criteria—the purpose for which customers
rent from us (business or leisure) and the type of location from which they rent (airport or off-airport). The
table below sets forth, for the year ended December 31, 2008, the percentages of rental revenues and
rental transactions in our U.S. and international operations derived from business and leisure rentals and
from airport and off-airport rentals.
Year ended December 31, 2008
U.S. International
Revenues Transactions Revenues Transactions
Type of Car Rental
By Customer:
Business .............................. 45% 49% 54% 52%
Leisure ............................... 55 51 46 48
100% 100% 100% 100%
By Location:
Airport ............................... 78% 77% 54% 57%
Off-airport ............................. 22 23 46 43
100% 100% 100% 100%
Customers who rent from us for ‘‘business’’ purposes include those who require cars in connection with
commercial activities, the activities of governments and other organizations or for temporary vehicle
replacement purposes. Most business customers rent cars from us on terms that we have negotiated
with their employers or other entities with which they are associated, and those terms can differ
substantially from the terms on which we rent cars to the general public. We have negotiated
arrangements relating to car rental with many large businesses, governments and other organizations,
including most Fortune 500 companies.
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