Thrifty Car Rental 2011 Annual Report Download - page 16

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franchisee employees, using professional trainers, performance coaches and computer-based
training programs.
Information Systems
The Company depends upon a number of core information systems to operate its business, primarily
its counter automation, Internet Web sites, distribution network, rate and reservation systems, fleet
and revenue management systems. The counter automation system in company-owned stores
processes rental transactions, facilitates the sale of additional products and services and facilitates
the monitoring of the fleet and financial assets. The Company also relies on a revenue management
system that enables the Company to better determine rental demand based on current and historical
reservation patterns and adjust its rental rates accordingly. The Company’s Internet Web sites and
various distribution networks allow the Company’s products to be marketed and reserved directly or
through our various channel partners.
The Company continues to invest in new business system capabilities to facilitate operations and
reduce ongoing operating costs. In 2011, the Company continued to deploy new counter automation
capabilities, redesigned and enhanced key distribution capabilities and upgraded the revenue
management system to incorporate new products and handle greater volumes. The Company also
deployed newer technologies, consolidated platforms and renegotiated key supplier agreements that
helped reduce ongoing information technology (“IT”) operating cost.
Hewlett-Packard Company (“HP”) provides the majority of the Company’s IT services, including
applications development and maintenance, network, workplace and storage management, back-up
and recovery and mid-range hosting services. HP also manages and monitors the majority of the
Company’s data network and its daily information processing. The Company’s counter automation,
reservations, revenue management, Internet Web sites and fleet processing systems are housed in
a secure underground HP facility in Oklahoma designed to withstand disasters.
U.S. franchisees receiving a certain volume of reservations are required to use an approved
automated counter system. In addition to providing an electronic data link with the Company’s
worldwide reservations centers, the automated counter system produces rental agreements and
provides the Company and its franchisees with customer and vehicle inventory information, as well
as financial and operating reports.
Fleet Acquisition and Management
Vehicle Supply
The Company has vehicle supply agreements with both Chrysler and Ford covering vehicle
purchases through the 2012 and 2013 model years, respectively, and has a vehicle purchase
agreement with General Motors covering vehicle purchases through the 2012 model year.
For the 2011 model year, Ford, General Motors and Chrysler vehicles represented approximately
52%, 27% and 16%, respectively, of the total U.S. fleet purchases by DTG Operations. The
Company expects that for the 2012 model year Chrysler, Ford and General Motors will represent
approximately 35%, 26% and 14%, respectively, of total U.S. fleet purchases of DTG Operations.
Vehicle Residual Value Risk
Vehicle depreciation is the largest single cost element in the Company’s operations, and is
dependent upon the ultimate residual values of vehicles in the fleet, in addition to the overall mix of
Program and Non-Program Vehicles.