Dollar Rent A Car 2007 Annual Report Download - page 18

The Company also negotiates national account programs to allow its franchisees to take advantage of
volume discounts for many materials or services used for operations such as tires, glass replacement,
long distance telephone service and overnight mail.
Supplemental Equipment and Optional Products – Dollar and Thrifty rent global positioning system (GPS)
equipment, ski racks, infant and child seats and other supplemental equipment, sell pre-paid gasoline
and, subject to availability and applicable local law, make available loss damage waivers and insurance
products related to the vehicle rental. New products available in 2007 include: roadside emergency
benefit programs, RoadSafe and TripSaver, and Rent-a-Toll for electronic toll payments. Also in 2007,
Dollar introduced the “Style Series”, which is a high end line of vehicles offered in select leisure locations
around the United States.
Reservations
The Internet is the primary source of reservations for the Company. For the year ended December 31,
2007, approximately 74% of the Company’s total non-tour reservations came through the Internet,
increasing from approximately 68% in 2006. The Company’s Internet Web sites (dollar.com and
thrifty.com) provided approximately 42% of total non-tour reservations. During 2007, 32% of non-tour
reservations were provided from third party Internet sites with no individual third party site providing in
excess of 8% of total non-tour reservations. The remaining non-tour reservations were primarily provided
by the reservation call centers and travel agents. In early 2007, the Company outsourced a portion of its
call center operations to PRC, a global leader in the operation of outsourced call centers. The Company
still maintains some call center operations at its Tahlequah, Oklahoma facility. Dollar and Thrifty
reservation systems are linked to all major airline reservation systems and through such systems to travel
agencies in the United States, Canada and abroad.
Marketing
Dollar and Thrifty are positioned as value car rental companies in the travel industry, providing on-airport
convenience with low rates on quality vehicles. Customers who rent from Dollar and Thrifty are cost-
conscious leisure, government and business travelers who want to save money on car rentals without
compromising fundamental car rental products or services.
Dollar and Thrifty acquire these value-oriented customers through a multi-faceted marketing approach
that involves traditional and Internet advertising, Internet search marketing, sales teams, strategic
marketing partners, and investments in traditional and emerging distribution channels. Each of these
disciplines has a specific focus on selected customer segment opportunities.
In the United States, Thrifty’s national advertising and marketing expenses have been paid out of an
advertising fund managed by a national advertising committee consisting of representatives of Thrifty
franchisees and certain members of Company management through 2007. In 2008, Thrifty’s national
advertising will no longer be managed by a national advertising committee and will be managed by the
Company.
Strategic Marketing Partners
Dollar and Thrifty have aligned themselves with certain strategic marketing partners to facilitate the
growth of their business.
Dollar has strong relationships with many significant international tour operators who specialize in
inbound tour packages to the United States, as well as domestic tour operators who generate inbound
business to Hawaii, Florida and other leisure destinations.
Major travel agents and consortia operate under preferred supplier agreements with Dollar and Thrifty.
Under these preferred agreements, Dollar and Thrifty provide these travel agency groups additional
commissions or additional benefits in return for their featuring Dollar and Thrifty in their advertising or
giving Dollar and Thrifty a priority in their reservation systems. In general, these arrangements are not
exclusive to Dollar and Thrifty.
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