Hertz.com offers online international car rental service & online rates
Hertz Global Holdings
Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Park Ridge, New Jersey. The company was incorporated on August 31, 2005. The company deals with equipment rental business, and operates in three business segments, which are, car rentals, equipment rentals, and other operations. As regards to the car rental business, Hertz holdings, along with its independent licensees and associates, have around 7,600 locations in 145 countries, from where they accept reservations for car rentals. The company has its network all over the US, and in major European market, and has recently added its operation in Asia. As regards to its equipment renting business, Hertz Holdings has 360 branches in the US, Canada, France and Spain, and has international licensees as well.
In addition to the above, Hertz also deals in retail used car sales, with outlets in the US and France. In its renting equipment business in North America and Europe, the company deals with earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment, and construction-related trucks. Hertz also sells equipment and consumables. The company also services claim administration, such as:
- Investigating.
- Evaluating. Negotiating and disposing of various claims, including:
- third-party
- first-party
- body injury
- property damage, general liability, and product liability
The licensees and associates of Hertz Holdings operate in over 140 locations in the world, and also operates in most of such countries which have Hertz operated rental locations. Hertz Global serves various industries, such as construction, petrochemical, automobile manufacturing, railroad, power generation, and shipbuilding.
Car Rental
Hertz operates its car rental business though company-operated rental locations, and its agents, renting out cars that the company owns or leases. The revenue earnings of Hertz Holdings derived from airport locations during the year ending December 31, 2006, was roughly 72% of its world-wide car rental revenues.
Hertz rental deals with a variety of cars and its models. It usually rents out cars on daily, weekend, weekly, monthly or multi-month basis. The company's turn-over also comes from licensee fees, reimbursements by customers of airport concession fees and vehicle licensing costs, fueling charges, and charges for ancillary customer products and services, for example, child seats, ski racks, etc, loss or collision damage waiver, theft protection, liability and personal accident/effects insurance coverage, Hertz NeverLost navigation systems and satellite radio services.
The company had about 1,700 staffed rental locations in the US, as of December 31, 2006. Out of the 1,700 rental outlets, Hertz had about one-third of them in airports, and the rest were situated elsewhere. Additionally, Hertz rental operates from over 950 locations, which are not staffed. Internationally, the company had about 1,100 staffed locations during the same time. Out of these, one-fifth was in the airports, and the rest outside the area of the airports. In the international scenario, Hertz rents out cars from 80 other locations, which are not staffed.
There are two primary categories in the company's car rental business. The first one being those who rent a car for business or pleasure, and the second being the rentals which are hired from either the airport, or from off-airport sites. Car rentals on business purposes include those clients who hire them for commercial purposes, which could be for the purpose of government’s activities and other organization activities, or for temporary requirement, such as, vehicle replacement purposes. Customers who hire vehicles from Hertz are not only those who are the individual travelers, but are also those who rent cars to meet their personal needs. For business or leisure, Hertz car rentals are always in demand from the airport and off-airport locations as well.
Hertz purchased approximately 7,200 used cars during the year 2006. During the year, the company had its peak business turn-over from renting out about 310,000 cars in the United States, and had a combined peak renting from its international operations of approximately 168,000 cars. This, in each case, was exclusive of its licensees' fleet. Combining the company owned and licensee owned vehicles in the US, Hertz owns over 96% of the cars.
Licenses are generally issued by the wholly owned subsidiaries, Hertz System, Inc. (System), and Hertz International, Ltd. (HIL). These licenses are issued to individual licensee and affiliates, under franchise arrangements. The licensees are usually those who are already dealing with car rentals in the US and other foreign countries.
Equipment Rental
Hertz Equipment Rental Corporation (HERC) is a wholly owned subsidiary of Hertz Holdings. The company rents a wide range of earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment and construction-related trucks. Revenue earnings of HERC also come from sale of new equipment and consumables. The company has operations of equipment rental service in the US, Canada, France and Spain. These are rented out to customers, from local contractors to large industrial plants. HERC services include, maintenance of the tools and equipment that it owns, supply of rented tools for the labor force of its customers, and customer management reporting. This is done by dedicated in-plant operations, tool trailers, and plant management systems.
By the end of December 31, 2006, HERC had 362 equipment rental branches. Out of this 242 were located in the 40 states of the US, and 33 of them were in Canada, with 79 in France, and 8 in Spain. During the same period, HERC added 10 more locations in the US, and 2 new ones in Canada.
The customers of the subsidiary company, HERC, represent various industry sections, such as, construction, petrochemical, automobile manufacturing, railroad, power generation and shipbuilding. HERC grants licenses in the name of Hertz, to eight countries in Europe, and Middle East, for the equipment rental business.
Other Operations
Hertz Holdings provides claim administration services, under the name of its subsidiary, Hertz Claim Management Corporation (HCM). This service is essentially provided to the company itself and to a lesser extent to other customers. The claim administration services include, investigating, evaluating, negotiating and disposing of a variety of claims, including third party, first party, bodily injury, property damage, general liability and product liability. HCM operates through nine regional offices in the US.
HERTZ Holdings has Avis Budget Group, Inc., Vanguard Car Rental USA Group, Dollar Thrifty Automotive Group, Inc. and Enterprise, as its competitors.
Restructuring
Hertz holding announced restructuring initiatives for further improvement of the company's business. These initiatives propose to bring effective changes in the company in the second quarter of the fiscal year 2007. These changes will affect approximately 480 positions in the company's US operations, which are dealing in car and equipment rentals, including its Oklahoma City service center. The changes would exclude customer-facing positions. This initiative taken by the company is expected to result in an annualized saving of $24 million. The company expects to incur $8 million to $10 million expenses for a one-time severance costs and for its ongoing restructuring activities, which are planned to be taken up in the second quarter of 2007 fiscal year.
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