Hertz Announces Price Increases in Global Retail Markets
Hertz Global Holdings, Inc. (NYSE: HTZ) today announced it has implemented price increases which are in effect starting between October 24 and November 10 for all dates forward, for its retail rental businesses in North America and Europe. Specifically, retail car rental rates have been increased by an average of over 10% in North American airport markets, 5% in U.S. off-airport markets and approximately 10% in European** airport and downtown markets. Additionally, short term rates in U.S. and European equipment rental markets have been increased by approximately 10%, and long term rates have been increased by approximately 5%. The increases result in an average of over $5 per day increase in the U.S. airport market, and a EUR 3.7 and GBP 2.5 per day increase in the Euro zone and the U.K. airport car rental markets, respectively. The Company’s negotiated contract rates are not affected by this announcement.
Mark P. Frissora, Hertz’s Chairman and Chief Executive Officer, commenting on the pricing actions, said, “We are committed to our overall strategy which will align rental revenues more closely with our overall costs. We assessed inflationary trends in key areas, including vehicle maintenance and repairs, depreciation and other fleet-related costs, facility expenses and commodity prices. Additionally, we continue our companywide process, which began in early 2007, to restructure and right-size Hertz to further mitigate the effects of inflation and to operate as the lowest cost, highest quality rental provider in the world. We also remain committed to industry-leading, consumer-friendly initiatives such as our ‘local pump price’ refueling program in the U.S. car rental market,” he added.
Hertz leads the car rental industry in customer-focused innovations, and other service-oriented initiatives. In addition to serving all major airports in North America and Europe, Hertz has expanded its footprint off-airport as well, including 75 net new locations added in the U.S. this year. Hertz is the only U.S. car rental company to offer a refueling option with gasoline sold at local “pump prices,” including a small service fee. Additionally, Hertz has implemented a 10-minute service guarantee for customers who book online, and has installed 135 rental kiosks at 27 major airports to further speed the rental process. Hertz also offers NeverLost navigation units on over 60,000 vehicles, along with Sirius Satellite radio and Nickelodeon portable DVDs among many conveniences for business and leisure travelers.
The Company noted that, prior to implementing these increases, its pricing in the U.S. car rental market was more than 1.5% lower for the 12-month period ending September 30, 2008, with a similar reduction in pricing for the company’s U.S. equipment rental business.
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 8,100 locations in 144 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 69 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), Hertz NeverLost(R) customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the Company’s Prestige, Fun and Green Collections, set Hertz apart from the competition. 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 through approximately 350 branches in the United States, Canada, China, France and Spain.
** Belgium, France, Germany, Italy, Luxembourg, Netherlands, Spain, Switzerland, U.K.
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SOURCE: The Hertz Corporation