Hertz 2014 Annual Report Download - page 17

Table of Contents
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• Provides customers a more convenient and geographically extensive network of rental locations, thereby creating revenue opportunities
from replacement renters, non-airline travel renters and airline travelers with local rental needs;
• Provides a more balanced revenue mix by reducing our reliance on air travel and therefore limiting our exposure to external events that
may disrupt airline travel trends;
• Contributes to higher fleet utilization as a result of the longer average rental periods associated with off airport business, compared to
those of airport rentals;
• Insurance replacement rental volume is less seasonal than that of other business and leisure rentals, which permits efficiencies in both
fleet and labor planning; and
• Cross-selling opportunities exist for us to promote off airport rentals among frequent airport Hertz Gold Plus Rewards program renters and,
conversely, to promote airport rentals to off airport renters. In view of those benefits, we intend to seek profitable growth in the off airport
rental market, both in the U.S. and internationally.
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We rent a wide variety of makes and models of cars. We rent cars on an hourly (in select markets), daily, weekend, weekly, monthly or multi-
month basis, with rental charges computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. Our rates vary by brand
and at different locations depending on local market conditions and other competitive and cost factors. While cars are usually returned to the
locations from which they are rented, we also allow one-way rentals from and to certain locations. In addition to car rentals and franchisee fees, we
generate revenues from reimbursements by customers of airport concession fees and vehicle licensing costs, fueling charges, and charges for
ancillary customer products and services such as supplemental equipment (child seats and ski racks), loss or collision damage waiver, theft
protection, liability and personal accident/effects insurance coverage, premium emergency roadside service, Hertz NeverLost navigation systems
and satellite radio services.
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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 with
a limited number of models in high-volume, leisure-oriented destinations.
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 U.S. 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.
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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. Participants in our Hertz Gold Plus Rewards program in the U.S. 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 or converted to awards of other companies' loyalty
programs. For the year ended December 31, 2014, rentals by Hertz Gold Plus Rewards members accounted for approximately
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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