Thrifty Car Rental 2011 Annual Report Download - page 7

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PART I
ITEM 1. BUSINESS
Company Overview
General
Dollar Thrifty Automotive Group, Inc., a Delaware corporation (“DTG”), owns DTG Operations, Inc.
(“DTG Operations”), Dollar Rent A Car, Inc. and Thrifty, Inc. Thrifty, Inc. owns Thrifty Rent-A-Car
System, Inc. and Thrifty Car Sales, Inc. (“Thrifty Car Sales”). Thrifty Rent-A-Car System, Inc. owns
Dollar Thrifty Automotive Group Canada Inc. (“DTG Canada”). DTG operates under a corporate
structure that combines the management of operations and administrative functions for both the
Dollar and Thrifty brands. DTG Operations operates company-owned stores under the Dollar brand
and the Thrifty brand, operates reservation centers for both brands and conducts sales and
marketing activities for both brands. Thrifty Rent-A-Car System, Inc. and Dollar Rent A Car, Inc.
conduct franchising activities for their respective brands. Thrifty Car Sales operates a franchised
retail used car sales network. The Company also has a special purpose financing entity, Rental Car
Finance Corp. (“RCFC”), which has been consolidated in the financial statements of the Company.
Dollar Rent A Car, Inc., the Dollar brand and DTG Operations operating under the Dollar brand are
individually and collectively referred to hereafter as “Dollar”. Thrifty, Inc., Thrifty Rent-A-Car System,
Inc., Thrifty Car Sales, the Thrifty brand and DTG Operations operating under the Thrifty brand are
individually and collectively referred to hereafter as “Thrifty”. DTG, Dollar and Thrifty and each of
their subsidiaries are individually or collectively referred to herein as the “Company”, as the context
may require.
The Company is the successor to Pentastar Transportation Group, Inc., which was formed in 1989 to
acquire and operate the rental car subsidiaries of Chrysler Group, LLC, the new legal entity following
the restructuring of Chrysler LLC (formerly known as DaimlerChrysler Corporation) (such successor
or predecessor entity, as the context may require, and its subsidiaries and members of its affiliated
group are hereinafter referred to as “Chrysler”). DTG Operations, formerly known as Dollar Rent A
Car Systems, Inc., was incorporated in 1965. Thrifty Rent-A-Car System, Inc. was incorporated in
1950 and Dollar Rent A Car, Inc. was incorporated in December 2002. Thrifty, Inc. was incorporated
in December 1998.
Operating Structure
Dollar and Thrifty and their respective independent franchisees operate the Dollar and Thrifty vehicle
rental systems. The Dollar and Thrifty brands represent a value-priced rental vehicle generally
appealing to leisure customers, including foreign tourists, and to small businesses, government
business and independent business travelers. As of December 31, 2011, Dollar and Thrifty had 586
locations in the U.S. and Canada, of which 280 were company-owned stores and 306 were locations
operated by franchisees.
In the U.S., Dollar's main focus is operating company-owned stores located in major airports, and it
derives substantial revenues from leisure and tour package rentals. Thrifty focuses on serving both
the airport and local markets operating through a network of company-owned stores and
franchisees. Dollar and Thrifty currently derive the majority of their U.S. revenues from providing
rental vehicles and services directly to rental customers. Consequently, Dollar and Thrifty incur the
costs of operating company-owned stores, and their revenues are directly affected by changes in
rental demand and pricing. Dollar and Thrifty also have franchisees in countries outside the U.S.
and Canada and derive revenues from franchise fees and by providing services such as reservation
and rate management services.
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