Hertz 2015 Annual Report Download - page 14

Table of Contents
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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, 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 and 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 (“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 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, 2015, 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 Gold Choice 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 is offered at 57 U.S. airport locations
and 8 locations in Europe.
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 Plus Rewards customers approximately 30 minutes prior to their arrival. We also offer 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.
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.