Thrifty Car Rental 2009 Annual Report Download - page 10

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Dollar and Thrifty Brands
Dollar
Dollar’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 stores in the U.S. and Canada, and also licenses to independent franchisees which
operate as a part of the Dollar brand system. At December 31, 2009, Dollar had 81 company-owned
stores at airports and 70 in local markets, and 49 franchised in-terminal airport locations and 82
franchised local market operations in the U.S. and Canada. In Canada, Dollar operates company-owned
stores in five of the eight largest airport markets of Calgary, Toronto, Montreal, Halifax and Vancouver.
As of December 31, 2009, Dollar’s vehicle rental system included 282 locations in the U.S. and Canada,
consisting of 151 company-owned stores and 131 franchisee locations. Dollar’s total rental revenue
generated by company-owned stores was $845 million for the year ended December 31, 2009.
Thrifty
Thrifty serves both the airport and local markets through company-owned stores and its franchisees
which derive approximately 85% of their combined rental revenues from the airport market and
approximately 15% from the local market. At December 31, 2009, Thrifty had 80 company-owned stores
at airports and 65 in local markets, and 60 franchised in-terminal airport locations and 126 franchised
local market operations in the U.S. and Canada.
At December 31, 2009, Thrifty’s vehicle rental system included 331 rental locations in the U.S. and
Canada, consisting of 145 company-owned stores and 186 franchisee locations. Thrifty’s total rental
revenue generated by company-owned stores was $628 million for the year ended December 31, 2009.
Corporate Operations
United States
The Company’s operating model for U.S. Dollar and Thrifty company-owned stores includes generally
maintaining separate airport counters, reservations, marketing and all other customer contact activities,
while using a single management team for both brands. In addition, this operating model includes
sharing vehicles, bussing operations, back-office employees and service facilities, where possible.
As of December 31, 2009, the Company operates each of the Dollar brand and the Thrifty brand in 56 of
the top 75 airport markets in the U.S. and operates both brands in 47 of those top 75 airport markets.
Canada
The Company operates in Canada through DTG Canada. The Company currently operates company-
owned stores in five of the eight largest airport markets in Canada, which include Calgary, Toronto,
Montreal, Halifax and Vancouver. The majority of the markets are operated under the Company’s co-
branding strategy in Canada where both the Dollar and Thrifty brands are represented at one shared
location.
Tour Rentals
Vehicle rentals by customers of foreign and U.S. tour operators generated approximately $206 million or
14% of the Company’s rental revenues for the year ended December 31, 2009. These rentals are usually
part of tour packages that can also include air travel and hotel accommodations. No single tour operator
account generated in excess of 2% of the Company’s 2009 rental revenues.
Other
As of December 31, 2009, the Company had 142 vehicle rental concessions for company-owned stores
at 83 airports in the United States. Its payments for these concessions are usually based upon a specified
percentage of airport-generated revenue, subject to a minimum annual fee, and typically include fixed
rent for terminal counters or other leased properties and facilities. A growing number of larger airports
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