Hertz 2011 Annual Report Download - page 34

ITEM 1. BUSINESS (Continued)
Collection), our sports car rental program (Adrenaline Collection), our environmentally friendly rental
program (Green Traveler 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 a global car-sharing service, now referred to as Hertz On Demand which
rents cars by the hour and/or by the day, at various locations in the U.S., Canada and Europe. Hertz On
Demand allows customers to sign up for free for the service and start renting cars by the hour. Members
reserve vehicles online, then pick up the vehicles at various locations throughout a city, at a university or
a corporate campus without the need to visit a Hertz rental office. Customers are charged an hourly
car-rental fee which includes fuel, insurance, 24⁄7 roadside assistance, in-car customer service and 180
miles per day.
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 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, 2011, we had 74 corporate Advantage brand rental locations in the
United States and Europe and 15 affiliates in Latin America and the Carribean.
Beginning in December 2010, we made the next generation of electric vehicles available to the general
public through our Hertz On Demand car sharing operation. Electric vehicles have been added to our
fleet and are available at various cities across the U.S. such as New York, Washington D.C. and San
Francisco, in Europe and in China. We plan continued deployment of electric vehicles and plug-in hybrid
electric vehicles in both the U.S. and other countries throughout 2012.
On September 1, 2011, Hertz acquired 100% of the equity interest in Donlen, a leading provider of fleet
leasing and management services for corporate fleets and for the four months ended December 31,
2011 (period it was owned by Hertz), had an average of approximately 137,000 vehicles under lease and
management. Donlen provides Hertz an immediate leadership position in long-term car, truck and
equipment leasing and fleet management. Donlen’s fleet management programs provide outsource
solutions to reduce fleet operating costs and improve driver productivity. These programs include
administration of preventive maintenance, advisory services, and fuel and accident management along
with other complementary services. This transaction is part of the overall growth strategy of Hertz to
provide the most flexible transportation programs for corporate and general consumers. Additionally,
Donlen brings to Hertz a specialized consulting and technology expertise that will enable us to model,
measure and manage fleet performance more effectively and efficiently.
Based on the latest available data, in the United States, the Hertz brand had the highest market share, by
revenues, in 2009, 2010 and in the first nine months of 2011 at approximately 200 of the largest airports
where we have company-operated locations. Out of the approximately 190 major European airports at
which we have company-operated rental locations, data regarding car rental concessionaire activity for
the year ended December 31, 2011 was available at 119 of these airports. Based upon this data, we
believe that we were the largest airport car rental company, measured by aggregate airport rental
revenues during that period, at those 119 airports taken together. In the United States, we intend to
maintain or expand our market share in the airport rental business. For a further description of our
competitors, market share and competitive position see ‘‘—Competition’’ below.
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