Hertz 2009 Annual Report Download - page 28

ITEM 1. BUSINESS (Continued)
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 material changes in our ownership. See ‘‘Item 1A—Risk Factors—Risks Related to Our
Business—If we experience a change in ownership of a material percentage of our equity without
obtaining certain approvals, our results of operations and financial condition could be materially
adversely affected.’’
The Hertz brand is one of the most recognized brands in the world. Our customer surveys, in the United
States, indicate that 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 late 2008, we introduced Connect by Hertz, a new global car-sharing service utilizing Eileo technology
(discussed below), which rents cars by the hour at more than two dozen locations in the U.S., Canada
and Europe. 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, at a university or a corporate campus without checking in at a Hertz rental office, and then pay an
hourly car-rental fee.
In April 2009, we completed the acquisition of certain assets of Advantage Rent A Car, or ‘‘Advantage.’’
Advantage is a popular brand for price-oriented customers at key U.S. leisure travel destinations. The
purchase agreement provided us with the rights to purchase certain rights, trademarks and copyrights
to use the Advantage brand name, website and phone numbers. In addition, the agreement provides us
with the option to have assigned to us certain leases, fixed assets, airport concession agreements and
other agreements associated with approximately 20 locations that Advantage is or previously was
operating. As of December 31, 2009, we had 24 corporate Advantage brand rental locations in the
United States.
In April 2009, we completed the acquisition of Eileo, S.A.S., or ‘‘Eileo,’’ a Paris, France-based developer
of car sharing technology. As discussed above, Eileo’s end-to-end solutions are utilized by Connect by
Hertz.
During 2009, we launched Rent2Buy, a new way to buy a used rental car which operates in select states,
including California and Hawaii. Customers have an opportunity for a three-day test rental of a
competitively priced car from our rental fleet. If the customer purchases the car, he or she is credited with
up to three days of rental charges, and the purchase transaction is completed through the internet and
by mail in those states where permitted.
In the United States, the Hertz brand had the highest market share, by revenues, in 2008 and in the first
nine months of 2009 at the approximately 190 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, 2009 was available at 78 of
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