Hertz 2011 Annual Report Download - page 10

GROWTH
Hertz grows where we can leverage
core strengths. For example, we have
successfully developed a global car
sharing business, now called Hertz
on Demand™, because we were able to
leverage the technology and lessons
learned building the global car rental
industry over our storied 90+ year
history. Our corporate rental program,
which serves business travelers of
all ages, was the basis for renting to
younger travelers 20 years old and
above. And perhaps most notably, our
150-nation, 8,500-location global
footprint provides the capability to
lead the industry, serving international
travelers and expanding our presence
in rapid-growth markets like Brazil,
China and India. International travel is
likely to double over the next decade,
led by the expanding middle classes
in these emerging nations. Hertz will
be there to serve their needs locally
and overseas.
We continue to expand our off-airport
presence in the United States. We
operated from approximately 2,175
locations by year end 2011, generating
revenues of nearly $1.2 billion. We
also serve an increasingly wide range
of insurance replacement accounts,
including the largest auto insurers in
the world. We plan to accelerate the
pace of growth in 2012, and build on
our 11% market share.
We also continued to build a presence
in the growing value segment of the
car rental market. Most notable is the
rapid rise of Advantage, the company
we purchased out of bankruptcy in
April 2009. As of year end 2011,
Advantage has grown to 81 locations
in the U.S. and Europe, generating
revenues exceeding $214 million.
Advantage’s U.S. airport market share
already exceeds 1%, although oper-
ating from less than 60 locations.
We also purchased Ace Rental Cars
and rapidly expanded to 10 locations
in Australia and New Zealand, offering
the cost conscious consumer greater
value for their traveling dollar.
We achieved exceptional growth
rates in these newer markets. For
example, Hertz on Demand™ car
sharing revenues grew more than
80%, our “Young Renters” revenues
grew almost 14% and our insurance
replacement business in the U.S. grew
by more than 12.5%. Inbound/out-
bound revenue growth remained
strong at 6% year-over-year despite
difficult economic conditions in
Europe which slowed travel between
Europe and North America.
KEY GROWTH INITIATIVES INCLUDE:
• U.S. off-airport
• Value brands Advantage and Ace Rental Cars
• Young Renters
• Inbound/Outbound
• Car sharing—Hertz On Demand™
• Electric vehicles
Car Rental
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