Hertz 2015 Annual Report Download - page 15

Table of Contents
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We offer a car-sharing membership service, referred to as Hertz 24/7TM, which rents cars by the hour and/or by the day, at various locations
internationally, primarily in Europe and Australia. Members reserve vehicles online, then pick up the vehicles at various locations, such as a
university, corporate campus or a retailer, without the need to visit a Hertz rental office. Members are charged an hourly or daily car-rental fee
which includes fuel, insurance, 24/7 roadside assistance and in-car customer service.
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We conduct active sales and marketing programs to attract and retain customers. Our sales force calls on companies and other organizations
whose employees and associates need to rent cars for business purposes. In addition, our sales force works with membership associations, tour
operators, travel companies and other groups whose members, participants and customers rent cars for either business or leisure purposes. Our
specialized sales force calls on companies with replacement rental needs, including insurance and leasing companies, automobile repair
companies, and car dealers. We also advertise our car rental offerings through a variety of traditional media channels, such as television and
newspapers, direct mail and the internet. In addition to advertising, we conduct a variety of other forms of marketing and promotion, including
travel industry business partnerships and press and public relations activities.
We categorize our car rental business based on (i) the purpose for which customers rent from us (business or leisure) and (ii) the type of location
from which they rent (airport or off airport). The table below sets forth the percentages of rental revenues and rental transactions in our U.S. and
international operations based on these categories.
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
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
By Customer:
Business 34%
38%
47%
48%
Leisure 66
62
53
52
100%
100%
100%
100%
By Location:
Airport 74%
78%
53%
57%
Off airport 26
22
47
43
100%
100%
100%
100%
Customers who rent from us for “business” purposes include those who require cars in connection with commercial activities, the activities of
governments and other organizations or for temporary vehicle replacement purposes. Most business customers rent cars from us on terms that we
have negotiated with their employers or other entities with which they are associated, and those terms can differ substantially from the terms on
which we rent cars to the general public. We have negotiated arrangements relating to car rental with many large businesses, governments and
other organizations, including most Fortune 500 companies.
Customers who rent from us for “leisure” purposes include not only individual travelers booking vacation travel rentals with us but also people
renting to meet other personal needs. Leisure rentals, generally, are longer in duration and generate more revenue per transaction than business
rentals. Leisure rentals also include rentals by customers of U.S. and international tour operators, which are usually a part of tour packages that
can include air travel and hotel accommodations.
Our business and leisure customers rent from both our airport and off airport locations. Demand for airport rentals is correlated with airline travel
patterns, and transaction volumes generally follow enplanement and GDP trends on a global basis. Customers often make reservations for airport
rentals when they book their flight plans, which make our strong relationships with travel agents, associations and other partners (e.g., airlines) a
key competitive advantage in generating consistent and recurring revenue streams.
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