Hertz 2009 Annual Report Download - page 35

ITEM 1. BUSINESS (Continued)
System licensees ordinarily are limited as to transferability without our consent and are terminable by us
only for cause or after a fixed term. Licensees in the United States may generally terminate for any reason
on 90 days’ notice. In Europe and certain other international jurisdictions, licensees typically do not have
early termination rights. Initial license fees or the price for the sale to a licensee of a company-owned
location may be payable over a term of several years. We continue to issue new licenses and, from time
to time, purchase licensee businesses.
During the year ended December 31, 2009, we added 32 locations by acquiring former licensees of our
domestic and international car rental operations. These acquisitions give us greater control over our
growth both in the United States and internationally and an expanded array of services across the Hertz
network. See Note 2 to the Notes to our consolidated financial statements included in this Annual Report
under the caption ‘‘Item 8—Financial Statements and Supplementary Data.’’ In the future we may
increase the number of our locations that are operated by our licensees.
Competition
In the United States, our principal car rental industry competitors are Avis Budget Group, Inc., or ‘‘ABG,’’
which currently operates the Avis and Budget brands, Enterprise, which operates the National Car
Rental, Alamo and Enterprise brands, and Dollar Thrifty Automotive Group, Inc., or ‘‘DTG,’’ which
operates the Dollar and Thrifty brands.
The following table lists our estimated market share, and the estimated market shares of our principal
competitors and their licensees, at the approximately 190 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 nine months ended September 30, 2009.
Nine Months
Ended Years ended December 31,
September 30,
2009 2008 2007 2006 2005 2004 2003
Brand Name
Hertz(1) ...................... 25.7% 27.4% 27.9% 28.5% 29.2% 29.6% 29.0%
Avis........................ 18.5 19.6 19.8 19.8 20.2 20.2 21.2
Budget ...................... 10.4 10.4 10.2 10.3 10.5 10.2 10.4
ABG Brands ................ 28.9 30.0 30.0 30.1 30.7 30.4 31.6
National/Alamo(2) ............... 21.2 20.1 19.8 19.7 19.4 19.8 20.8
Enterprise ................... 10.2 9.1 8.5 7.7 7.0 6.0 5.0
Enterprise Brands ............ 31.4 29.2 28.3 27.4 26.4 25.8 25.8
Dollar ....................... 7.1 6.9 7.1 7.1 7.1 7.7 7.4
Thrifty ...................... 4.9 4.4 4.3 4.4 4.3 4.5 4.4
DTG Brands ................ 12.0 11.3 11.4 11.5 11.4 12.2 11.8
Other ....................... 2.0 2.1 2.4 2.5 2.3 2.0 1.8
Total ....................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
(1) For nine months ended September 30, 2009, includes 0.4% for Advantage.
(2) National and Alamo were purchased by Enterprise in August 2007.
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