Hertz 2009 Annual Report Download - page 11

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Hertz has developed a deserved reputation
for being the preferred car rental company for
the business traveler yet today over half of our
customers are traveling on vacation or for another
special event in their lives. In 2009, and continuing
into 2010, Hertz is expanding its presence in the
leisure market which represents at least a $500
million revenue opportunity. Today Hertz is the
undisputed leader in personalized car rental service,
offering a wide range of vehicles in three distinct
categories which customers can specically reserve.
n Prestige Collection: A group of high
end cars and SUVs for travelers
who want to transform their trip
into a memorable, luxurious driving
experience. Prestige Collection
brands include Mercedes, Inniti,
Volvo, Cadillac and Lincoln and, in
Europe, BMW, Audi, and Land Rover.
n Green Collection: For the
traveler focused on driving a
vehicle that maximizes economic
and environmental consciousness,
The Green Collection includes higher MPG and
lower emission vehicles which are guaranteed at
reservation. These vehicles achieve at least 28 MPG
and have lower emissions, and include the popular
Toyota Prius, Nissan Altima and Toyota Camry
hybrids, as well as the Ford Fusion and Toyota
Corolla and Camry models.
n Fun Collection: For renters seeking a unique
holiday or memorable weekend getaway experience,
the right vehicle can set the tone and make all the
difference. The Fun Collection offers cars and SUVs,
including the Ford Mustang, Chevy Corvette ZHZ (hard
tops and convertibles) and Jeep Wrangler, guaranteed
to add a little more spice to that special trip.
Many travelers’ primary focus is to rent a reliable
vehicle at the lowest possible price. Service features
which are a “must have” for many customers may
be less critical for the price-driven consumer.
While Hertz has competitive pricing in a number of
channels, we made a major commitment to the low
price rental market last year.
In April, Hertz purchased the assets of
Advantage Rent A Car. Advantage provides
reasonably priced, reliable car rentals and is
especially popular among customers who book low
price travel online.
Advantage has exceeded all of our expectations.
We expect its revenues to approach $100 million
in 2010, and the Company is already operating
from 25 locations, with
25 more scheduled to
open this year. We believe
Advantage has already
captured nearly 1% of
airport market share in
the central states. The
Advantage footprint
primarily serves the
southern half of the
United States, covering
leisure destinations
in states like California, Florida, Texas, Colorado
and Arizona. Additionally, Advantage has been
able to redevelop and expand international afliate
programs to generate protable revenue.
We have made tremendous progress realizing
operational synergies between Advantage and Hertz.
The two operations share rental eet, with Hertz
able to provide cars — after the mid-week business
travel peak — to Advantage from Thursday evening
through Monday morning to serve its weekend and
holiday travelers. We have implemented a seamless
back-ofce integration, enabling both Hertz and
Advantage to operate more efciently.
With Advantage expanding into more of the top
leisure destinations in the United States, Hertz plans
to capture an even greater share of the leisure
travel market without diluting the Hertz brand or
revenue stream.
Serving The Vacation Traveler:
Advantage® and The Car Collections
Today over half of our business comes from leisure travelers
ranging from price-conscious Advantage Rent A Car customers to
vacationers who want the ultimate car rental experience.