Hertz 2014 Annual Report Download - page 15

Table of Contents
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industry and particularly in airline passenger traffic, or ‘‘enplanements,’’ as well as the Gross Domestic Product, or ‘‘GDP.’’ The off airport portion
of the industry has rental volume primarily driven by local business use, leisure travel and insurance replacements.
We believe car rental industry revenues in Europe account for over $13 billion in annual revenues, with the airport portion of the industry
comprising approximately 38% of the total. Because Europe has generally demonstrated a lower historical reliance on air travel, the European off
airport car rental market is significantly more developed than it is in the U.S. Within Europe, the largest markets are Germany, France, Spain, Italy
and the United Kingdom. We believe total rental revenues for the car rental industry in Europe in 2014 were approximately $11 billion in ten
countries—Germany, the United Kingdom, France, Italy, Spain, the Netherlands, Belgium, the Czech Republic, Luxembourg and Slovakia—where
we have company-operated rental locations and approximately $2 billion in 11 other countries—Ireland, Sweden, Portugal, Greece, Denmark,
Austria, Poland, Finland, Malta, Hungary and Romania—where our Hertz brand is present through our franchisees.
We believe car rental industry revenues in Asia Pacific account for over $12 billion in annual revenues, with the airport portion of the industry
comprising approximately 20% of the total. Within Asia Pacific, the largest markets are China, Australia, Japan and South Korea. In each of these
markets we have company-operated rental locations or where our Hertz brand is present through our partners, franchisees or companies in which
we own an equity interest and to whom we have licensed the Hertz brand.
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Our U.S. and international car rental businesses are primarily operated through four brands - Hertz, Dollar, Thrifty and Firefly. We offer multiple
brands in order to provide customers a full range of rental services at different price points. Each of our brands generally maintains separate airport
counters, reservations and reservation systems, marketing and all other customer contact activities, however a single management team
manages all four brands.
The Hertz brand is one of the most recognized brands in the world. Our customer surveys in the U.S. indicate that Hertz is the car rental brand
most associated with the highest quality service. This is consistent with numerous published best-in-class car rental awards that we have won,
both in the U.S. and internationally, over many years. We have sought to support our reputation for quality and customer service in car rental
through a variety of innovative service offerings, such as our customer loyalty program and our global expedited rental program (Gold Plus
Rewards), our one-way rental program (Rent-it-Here/Leave-it-There), our national-scale luxury rental program (Prestige Collection), our sports car
rental program (Adrenaline Collection), our environmentally friendly rental program (Green Traveler Collection), our elite sports and luxury car rental
program (Dream Cars), our car sharing service (Hertz 24/7TM) and our in-car navigational services (Hertz NeverLost). We intend to maintain our
position as a premier provider of rental services through an intense focus on service, quality and product innovation.
Dollar and Thrifty are positioned as value car rental brands in the travel industry. The Dollar brands main focus is serving the airport vehicle rental
market, which is comprised of business and leisure travelers. The majority of its locations are on or near airport facilities. Dollar operates primarily
through company-owned locations in the U.S. and Canada, and also licenses to independent franchisees which operate as a part of the Dollar
brand system. Thrifty serves both the airport and off airport markets through company-owned locations in the U.S. and Canada and licenses to
independent franchisees which operate as part of the Thrifty brand system.
In March 2013, we launched our Firefly brand in Europe, which is a deep value brand for price conscious leisure travelers. In August 2013, we
announced the expansion of our Firefly brand into the U.S. We have Firefly locations servicing local area airports in select U.S. and international
leisure markets where other deep value brands have a significant presence. Firefly enables us to access the highly value-conscious, leisure car
rental market in the U.S. which we temporarily exited in 2012 after divesting our Simply Wheelz subsidiary, which operated our Advantage brand.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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