Hertz Is Expanding
The Hertz Corporation continues the expansion of Hertz Local Edition, its U.S. off-airport car rental business, with 60 new locations opening during the remainder of year. By the end of December, Hertz will have opened more than 250 new locations in 2010. The openings are part of a Company-wide strategy to accelerate expansion in the off airport car rental market servicing the replacement, leisure and business customers in this segment.
“Our revenues continue to expand at a double-digit rate in the off airport market, and we are increasing our investment to meet anticipated demand,” commented Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation. “Since the beginning of the year, we’ve opened 192 new locations and we’re committed to an additional 60 location openings before year end. We are opening in the most cost efficient manner possible, partnering with key local businesses which generate car rental demand. As a result, we will easily surpass $1 billion of revenues in 2010, up more than $100 million over 2009, and early next year we will open our 2,000th off-airport location. The off airport segment is strategically critical for Hertz as we continue to develop new and expanded partnerships in the replacement market, offering customers pick up and delivery service, as well as growing our leisure and business rentals,” Frissora concluded.
Expanding market share rapidly in the $10 billion off-airport market, Hertz is primarily co-locating with body shops, hotels and repair facilities to serve the needs of local market customers. Off-airport rentals, which include leisure and local business rentals, replacement rentals and monthly or multi-month rentals, have a longer average length of keep, which drives revenue per transaction.
The car rental expansion confirms Hertz’ commitment to serving customers seeking to rent cars for insurance replacement, business trips, vacations and everyday purposes. Serving the insurance replacement industry for more than 10 years, Hertz currently has approximately 1,900 off-airport locations nationwide, the majority of which offer pick up and delivery service, and is a recognized supplier to more than 193 of the 209 largest insurance companies. Hertz Local Edition provides customers with a full range of rental vehicles, including compact through full-size cars and SUVs, and Hertz #1 Club Gold(R) counter service. The majority of Hertz Local Edition locations offer insurance replacement rentals.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ), is the world’s largest general use car rental brand, operating from approximately 8,300 locations in 146 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 81 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold(R), NeverLost(R) customized, onboard navigation systems, SIRIUS XM Satellite Radio, and unique cars and SUVs offered through the Company’s Prestige, Fun and Green Collections, set Hertz apart from the competition. The Company also operates the global car sharing club, Connect by Hertz, in New York City, Berlin, London, Madrid and Paris. Hertz also operates one of the world’s largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 325 branches in the United States, Canada, China, France and Spain.
