Hertz 2008 Annual Report Download - page 38

ITEM 1. BUSINESS (Continued)
The following table lists our estimated market share, and the estimated market shares of our principal
competitors and their licensees, at the approximately 185 largest U.S. airports at which we have
company-operated locations, determined on the basis of revenues reported to the airports’ operators on
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, 2008.
Eight
Months
Ended Years ended December 31,
August 31,
2008 2007 2006 2005 2004 2003 2002
Brand Name
Hertz ......................... 26.5% 27.9% 28.5% 29.2% 29.6% 29.0% 29.2%
Avis .......................... 19.4 19.8 19.8 20.2 20.2 21.2 22.3
Budget ........................ 10.6 10.2 10.3 10.5 10.2 10.4 10.8
ABG Brands(1) ................. 30.0 30.0 30.1 30.7 30.4 31.6 33.1
National/Alamo(2) ................. 20.1 19.8 19.7 19.4 19.8 20.8 21.8
Enterprise ...................... 8.9 8.5 7.7 7.0 6.0 5.0 3.9
Enterprise Brands .............. 29.0 28.3 27.4 26.4 25.8 25.8 25.7
Dollar ......................... 7.1 7.1 7.1 7.1 7.7 7.4 7.2
Thrifty ......................... 4.3 4.3 4.4 4.3 4.5 4.4 3.2
DTG Brands ................... 11.4 11.4 11.5 11.4 12.2 11.8 10.4
Other ......................... 3.1 2.4 2.5 2.3 2.0 1.8 1.6
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 more
significant presence in the off-airport market and ABG’s brands also are present. We believe that we
maintain the second largest market share, by revenues, in the off-airport car rental market in the United
States. In the three years ended December 31, 2008, we increased the number of our off-airport rental
locations in the United States by approximately 20% to approximately 1,645 locations. Revenues from
our U.S. off-airport operations grew during the same period, representing $971.8 million, $963.8 million
and $890.1 million of our total car rental revenues in the years ended December 31, 2008, 2007 and
2006, respectively. 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
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