Hertz 2012 Annual Report Download - page 41

ITEM 1. BUSINESS (Continued)
Competition
In the United States, in addition to local and regional vehicle rental companies, our principal car rental
industry competitors are Avis Budget Group, Inc., or ‘‘ABG,’’ which currently operates the Avis and
Budget brands and Enterprise Holdings, which operates the Enterprise Rent-A-Car Company, or
‘‘Enterprise,’’ National Car Rental and Alamo brands. In the United States, the Hertz brand had the
highest market share, by revenues, in 2010, 2011 and in the first eleven months of 2012 at approximately
200 of the largest airports where we have company-operated locations.
In Europe, in addition to us, the principal pan-European participants in the car rental industry are ABG,
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 and quality, service, reliability, rental locations and product innovation. We believe, however,
that the prominence and service reputation of the Hertz brand, our extensive worldwide ownership of car
rental operations and our commitment to innovation and service provide us with a competitive
advantage. Our acquisition of Dollar and Thrifty brands adds two popular value leisure brands enabling
us to compete across multiple market segments.
Worldwide Equipment Rental
Our worldwide equipment rental segment generated $1,385.4 million in revenues during the year ended
December 31, 2012.
Operations
Product Offerings
We, through HERC, operate an equipment rental business in the United States, Canada, France, Spain,
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, lighting, 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.
HERC’s comprehensive line of equipment enables it to supply equipment to a wide variety of customers
from local contractors to large industrial plants. The fact that many larger companies, particularly those
with industrial plant operations, now require single source vendors, not only for equipment rental, but
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