Thrifty Car Rental 2011 Annual Report Download - page 8

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Company Strategy
The Company believes that the U.S. travel markets should continue to improve in 2012. The
Company’s business strategy is designed to capitalize on these improving conditions and achieve
sustained, profitable growth based on the following key initiatives:
• Focus on Profitability of Core Operations. The Company’s focus is on maximizing
profitability of its core operations and return on assets. Key to this effort has been a focus
on the optimal balance between transaction volume and pricing, including particularly
enhancing rate per day, even where achieving this objective has resulted in reduced rental
days. The Company’s primary focus is the top 75 airport markets in the U.S. and in key
leisure destinations. The Company continues to focus on maximizing profitability of its
company-owned stores and continually monitors its stores in light of return on asset and
profitability targets. The Company expects to increase revenues and profitability through
expansion of its commercial and tour business, particularly with small and mid-sized
corporate customers, and continued improvements in the convenience, value and service it
offers to customers.
• Enhanced Fleet Diversification and Fleet Management. The Company operates a diversified
fleet, focused on maintaining inventory in line with travel demand, and product mix in line
with customer demand. The Company’s expected fleet composition for the 2012 model year
is comprised of vehicles from Chrysler (35%), Ford Motor Company (“Ford”) (26%), General
Motors Company (“General Motors”) (14%) and other manufacturers (25%). A diversified
fleet enables the Company to offer customers a wider range of vehicle options. The
Company has also reduced its credit exposure to the major vehicle manufacturers by shifting
its fleet mix to a greater proportion of vehicles purchased outside of manufacturer residual
value programs, which has also reduced funding requirements and vehicle depreciation
rates. The Company will also continue to explore alternative ways of disposing of its rental
fleet to maximize proceeds, particularly through enhanced Internet sales opportunities and
expanding retail sales.
• Expand Brand Representation in Select Markets Through Franchising. The Company has a
growing franchisee network, which provides it with brand representation in international
markets, smaller U.S. airport locations and local markets that are not part of the Company’s
core strategic focus. In those markets, franchised operations can provide the Company with
recurring and stable sources of profit. In optimizing its ownership mix, the Company may
continue to acquire franchisees on a limited and opportunistic basis for purposes of brand
consolidation or to improve its representation in larger markets that may be under-served. In
international markets outside of North America, the Company exclusively utilizes its
franchise network to promote its operations, and will continue to pursue international
franchise expansion as a growth opportunity. During 2011, the Company granted 18 and 4
new franchises to domestic and international franchisees, respectively.
• Continued Focus on Cost Controls. The Company has undertaken significant cost control
and productivity initiatives in recent years and considers its low cost structure to be a
competitive strength. In addition to key areas such as personnel productivity initiatives
utilized to optimize staffing levels, planned initiatives include further reliance on outsourcing
arrangements and elimination of redundant systems, further expansion of consolidated
purchasing programs and expanded use of best practices throughout the Company.
Available Information
The Company makes available free of charge on or through its Internet Web site its annual report on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to
such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934 as soon as reasonably practicable after such material has been electronically filed with, or
furnished to, the Securities and Exchange Commission (“SEC”). The Company’s Internet address is
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