Hertz 2011 Annual Report Download - page 41

ITEM 1. BUSINESS (Continued)
included in this Annual Report under the caption ‘‘Item 8—Financial Statements and Supplementary
Data.’’
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 Rent-A-Car Company, or ‘‘Enterprise,’’
which also operates the National Car Rental and Alamo brands, and Dollar Thrifty Automotive
Group, Inc., or ‘‘Dollar Thrifty,’’ which operates the Dollar and Thrifty brands. 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
We have a significant presence in the off-airport market. We believe that we maintain the second largest
market share, by revenues, in the off-airport car rental market in the United States. Since January 1,
2009, we increased the number of our off-airport rental locations in the United States by approximately
32% to 2,175 locations. Revenues from our U.S. off-airport operations represented $1,197.4 million,
$1,079.7 million and $953.4 million of our total car rental revenues in the years ended December 31,
2011, 2010 and 2009, respectively. Many smaller companies also operate in the airport and off-airport
rental markets.
In Europe, in addition to us, the principal pan-European participants in the car rental industry are Avis
Europe Ltd (which was acquired by ABG in 2011), operating the Avis and Budget brands, and Europcar.
Europcar also operates the National Car Rental and Alamo brands in the United Kingdom and Germany,
and through franchises in Spain, Italy and France. In certain European countries, there are also other
companies and brands with substantial market shares, including Sixt AG (operating the Sixt brand) in
Germany, France, Spain, the United Kingdom, Switzerland, Belgium, Netherlands and Luxembourg; and
Enterprise (operating the Enterprise brand) in the United Kingdom, Ireland and Germany. In every
European country, there are also national, regional or other, smaller companies operating in the airport
and off-airport rentals markets. Apart from Enterprise-branded operations, all of which Enterprise owns,
the other major car rental brands are present in European car rental markets through a combination of
company-operated and franchisee- or licensee-operated locations.
Competition among car rental industry participants is intense and is primarily based on price, vehicle
availability, service, reliability, distribution locations and product innovation. We believe, however, that
the prominence and service reputation of the Hertz brand and our extensive worldwide ownership of car
rental operations provide us with a competitive advantage.
Worldwide Equipment Rental
Operations
We, through HERC, operate an equipment rental business in the United States, Canada, France, Spain,
Italy, China and Saudi Arabia. On the basis of total revenues, we believe HERC is one of the largest
equipment rental companies in the United States and Canada combined. HERC has operated in the
United States since 1965.
HERC’s principal business is the rental of equipment. HERC offers a broad range of equipment for
rental; major categories include earthmoving equipment, material handling equipment, aerial and
electrical equipment, air compressors, pumps, generators, small tools, compaction equipment and
construction-related trucks.
Ancillary to its rental business, HERC is also a dealer of certain brands of new equipment in the United
States and Canada, and sells consumables such as gloves and hardhats at many of its rental locations.
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