Hertz 2013 Annual Report Download - page 12

Table of Contents
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collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service,
Hertz NeverLost navigation systems and satellite radio services.
Reservations
We accept reservations for our cars on a brand-by-brand basis, with each of our brands maintaining, and accepting reservations through, an
independent Internet site. Our brands generally accept reservations only for a class of vehicles, although Hertz accepts reservations for
specific makes and models of vehicles in our Prestige Collection, our Adrenaline Collection, our Green Traveler Collection, our Dream Cars
collection and a limited number of models in high-volume, leisure-oriented destinations. Beginning in December 2010, we made the next
generation of electric vehicles available to the general public, initially through our Hertz 24/7 TM car sharing service. 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 2014.
When customers reserve cars for rental from us and our franchisees, they may seek to do so through travel agents or third-party travel
websites. In many of those cases, the travel agent or website will utilize a third-party operated computerized reservation system, also known
as a Global Distribution System, or “GDS,” to contact us and make the reservation.
In major countries, including the United States and all other countries with company-operated locations, customers may also reserve cars for
rental from us and our franchisees worldwide through local, national or toll-free telephone calls to our reservations center, directly through our
rental locations or, in the case of replacement rentals, through proprietary automated systems serving the insurance industry. Additionally,
we accept reservations for rentals worldwide through our websites, for us and our franchisees. We also offer the ability to reserve cars
through our smartphone apps for the Hertz, Dollar and Thrifty brands.
For the year ended December 31, 2013, approximately 32% of the worldwide reservations we accepted came through our websites, while
27% through travel agents using GDSs, 14% through phone calls to our reservations center, 20% through third-party websites and 7%
through local booking sources and tour reservations.
Customer Service Offerings
At our major airport rental locations, as well as at some smaller airport and off-airport locations, customers participating in our Hertz Gold
Plus Rewards program are able to rent vehicles in an expedited manner. In the United States, participants in our Hertz Gold Plus Rewards
program often bypass the rental counter entirely and proceed directly to their vehicles upon arrival at our facility. Participants in our Hertz Gold
Plus Rewards program are also eligible to earn Gold Plus Rewards points that may be redeemed for free rental days. For the year ended
December 31, 2013, rentals by Hertz Gold Plus Rewards members accounted for approximately 40% of our worldwide rental transactions.
We believe the Hertz Gold Plus Rewards program provides a significant competitive advantage to us, particularly among frequent travelers,
and we have targeted such travelers for participation in the program.
Hertz has introduced a number of customer service offerings in recent years in order to further differentiate itself from the competition. The
most significant new offering was Gold Choice. Hertz Gold Choice now offers Gold Plus Rewards members an option to choose the car they
drive. Members' cars are still preassigned but Gold Choice allows the member the option to choose a different model and color from those
cars available at the new Gold Choice area. This service is free of charge to Hertz Gold Plus Rewards members who book a midsize class or
above. The Gold Choice program was launched during August 2011 and rolled out to 53 U.S. airport locations and 8 locations in Europe by
December 2013. Hertz also offers a Mobile Gold Alerts service, also known as "Carfirmations™," through which an SMS text message
and/or email is sent with the vehicle information and location, with the option to choose another vehicle from their smart phone prior to
arrival. It is available to participating Gold customers approximately 30 minutes prior to their arrival and Hertz e-Return, which allows
customers to drop off their car and go at the time of rental return. Additionally, in select locations customers can bypass the rental line through
our ExpressRent Kiosks.
Global Car-Sharing
In late 2008, we introduced a global car-sharing service, now referred to as Hertz 24/7 TM, which rents cars by the hour and/or by the day, at
various locations in the U.S., Canada and Europe. Hertz 24/7 TM allows customers to sign up for free for the service and to rent cars by the
hour or by the day. 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 or daily car-rental fee which includes fuel,
insurance, 24/7 roadside assistance, in-car customer service and an allowance to drive 180 miles per 24 hour period.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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