Hertz Global Holdings, Inc. (Hertz Global) engages in the vehicle rental and leasing business.
Hertz Global owns all shares of the common stock of The Hertz Corporation (Hertz) through its wholly owned subsidiary, Rental Car Intermediate Holdings, LLC.
The company engages principally in the business of renting vehicles primarily through its Hertz, Dollar, and Thrifty brands. As of December 31, 2024, the company operated its vehicle rental business globally from various company-operated and fra...
Hertz Global Holdings, Inc. (Hertz Global) engages in the vehicle rental and leasing business.
Hertz Global owns all shares of the common stock of The Hertz Corporation (Hertz) through its wholly owned subsidiary, Rental Car Intermediate Holdings, LLC.
The company engages principally in the business of renting vehicles primarily through its Hertz, Dollar, and Thrifty brands. As of December 31, 2024, the company operated its vehicle rental business globally from various company-operated and franchisee locations across approximately 160 countries and jurisdictions, including the U.S., Europe, Africa, Asia, Australia, Canada, the Caribbean, Latin America, the Middle East and New Zealand. The company is one of the largest worldwide vehicle rental companies and its Hertz brand name is among the most recognized globally. The company has an extensive network of airport and off airport rental locations in the U.S. and major European markets.
Strategy
The company’s strategy is focused on excellence in execution of the basics. It is committed to delivering unmatched customer experiences, optimizing fleet economics, and building on its leadership in ride share. Continuing to build on its brand strength, global network, and global fleet management capabilities, while also combining those efforts with investments in technology, shared mobility and a digital-first customer experience, will allow it to deliver on the basics and remain a central player in the modern mobility ecosystem.
Business Segments
The company operates through two reportable segments, Americas RAC and International RAC (Rental Car).
Americas RAC - Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America, and the Caribbean. The company maintains a substantial network of company-operated rental locations in this segment, and it has franchisees and partners that operate rental locations under its brands; and
International RAC - Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America, and the Caribbean. The company maintains a substantial network of company-operated rental locations, a majority of which are in Europe, and it has franchisees and partners that operate rental locations under its brands. As of December 31, 2024, approximately 70% of its franchised locations were in markets covered by its International RAC segment.
Americas RAC and International RAC Segments
Brands
The company’s Americas RAC and International RAC vehicle rental businesses are primarily operated through its three largest brands — Hertz, Dollar, and Thrifty. The company offers multiple brands to provide customers a full range of rental services at different price points, levels of service, offerings, and products. These brands generally maintain separate rental locations (e.g., separate airport counters), and use distinct reservation, marketing and other customer contact activities.
The company’s top tier brand, Hertz, is one of the most recognized brands in the world. It offers premium customer service, as evidenced by the numerous published best-in-class vehicle rental awards that the brand has been awarded over time, both in the U.S., and internationally. The Hertz brand's tagline of Hertz. Let's Go! expresses its commitment to quality, seamless travel. The Hertz brand provides customers with several innovative offerings, such as Hertz Gold Plus Rewards, Hertz Ultimate Choice and access to vehicles offered through its specialty collections. The Hertz brand seeks to maintain its position as a premier provider of vehicle rental services through an intense focus on service, loyalty, quality, and product innovation.
The company’s smart value brand, Dollar, is marketed as a smart choice for financially focused travelers looking for a dependable car. The Dollar brand’s core focus is serving family, leisure and small business travelers through the airport vehicle rental channel, both in the U.S., and internationally.
The company’s deep value brand, Thrifty, competes as a cost-conscious offering for travelers seeking to find a good deal. The Thrifty brand’s core focus is serving leisure travelers through the airport vehicle rental channel, both in the U.S. and internationally. Thrifty’s tagline of ‘The Absolute Best Car for Your Money’ expresses the brand’s focus on being the rental brand that puts the customer in control of where to splurge and where to save.
Operations
Locations
The company operates its brands at both airport and off airport locations that utilize common vehicle fleets, are supervised by common country, regional and local area management, use many common systems and rely on common vehicle maintenance and administrative centers. Additionally, its airport and off airport locations utilize common marketing activities and have many of the same customers. The company regards both types of locations as aspects of a single, unitary vehicle rental business. The company’s Americas RAC vehicle rental operations have company-operated locations primarily in the U.S. and Canada. Its International RAC vehicle rental operations have company-operated locations in Australia, Belgium, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands, New Zealand, Slovakia, Spain, and the United Kingdom.
Airport
As of December 31, 2024, the company had approximately 2,000 airport rental locations in its Americas RAC segment and approximately 1,500 airport rental locations in its International RAC segment.
For the company’s airport company-operated rental locations, it is dependent on, and has obtained, concessions or similar leasing agreements or arrangements, that grant it the right to conduct a vehicle rental business at the respective airport. The company’s concessions were obtained from the airports' operators, which are typically governmental bodies or authorities, following either negotiation or bidding for the right to operate a vehicle rental business.
Off Airport
As of December 31, 2024, the company had approximately 3,000 off airport locations in its Americas RAC segment and approximately 4,700 off airport rental locations in its International RAC segment. The company’s off airport rental customers include people who prefer to rent vehicles closer to their home or place of work for business or leisure purposes, as well as those needing to travel to or from airports. Its off airport customers also include people who have been referred by, or whose rental costs are being wholly or partially reimbursed by, insurance companies following accidents in which their vehicles were damaged, those expecting to lease vehicles that are not yet available from their leasing companies and replacement renters. In addition, the company’s off airport customers include drivers for certain ride share companies (the company’s ‘Ride Share Partners’).
When compared to the company’s airport rental locations, an off airport rental location typically uses a smaller rental facility with fewer employees, conducts pick-up and delivery services, and serves replacement renters using specialized systems and processes.
Customers and Business Mix
The company conducts various sales and marketing programs to attract and retain customers. Its sales force calls on companies, government agencies, and other organizations whose employees and associates need to rent vehicles for business or official purposes. The company’s sales force also calls on organizations, such as insurance and leasing companies, automobile repair companies and vehicle dealers whose customers need replacement rentals. In addition, its sales force works with membership associations, tour operators, travel companies, ride share companies, and other groups whose members, participants, and customers rent vehicles for either business or leisure purposes.
The company also markets directly to individual renters. The company advertises its vehicle rental offerings through traditional media channels, partner publications (e.g., affinity clubs, airline, and hotel partners) and direct mail. It also relies on digital marketing, and for the Hertz brand, it is increasingly seeking to expand access to and use of the Hertz smartphone app.
In addition to advertising, the company conducts other forms of marketing and promotion, including travel industry business partnerships and press and public relations activities.
The company categorizes its vehicle rental business based on the general purpose (business or leisure) and type of location (airport or off airport) from which customers rent from it.
Customers who rent from the company for ‘business’ purposes include those who require vehicles in connection with commercial activities, including drivers for its Ride Share Partners, the activities of governments and other organizations or for temporary vehicle replacement purposes (i.e., replacement rentals). Most business customers rent vehicles from the company on terms that it has negotiated with their employers or other entities with which they are associated, and those terms can differ from the terms on which it rents vehicles to the general public.
Customers who rent from the company for ‘leisure’ purposes include individual travelers booking vacation rentals and people renting to meet other personal needs (other than replacement rentals). Leisure rentals are generally longer in duration and generate more revenue per transaction than business rentals. Leisure rentals also include rentals by customers of the U.S. and international tour operators, which are usually a part of tour packages that can include air travel and hotel accommodations.
Off airport rentals include insurance replacements, and the company has agreements with the referring insurers establishing the relevant rental terms, including the arrangements made for billing and payment.
Customer Service Offerings
The company offers customers a wide range of services to differentiate itself from the competition and increase and diversify its revenue.
Hertz Gold Plus Rewards Program
At the company’s major airport rental locations and certain smaller airport and off airport locations, customers participating in its Hertz Gold Plus Rewards program are able to rent vehicles in an expedited manner. Participants in its Hertz Gold Plus Rewards program often bypass the rental counter entirely and proceed directly to their vehicle upon arrival at its facility. They are also eligible to earn Hertz Gold Plus Rewards points that may be redeemed for free rental days or converted to awards of other companies' loyalty programs.
The company’s Hertz Gold Plus Rewards program offers three elite membership tiers that provide more frequent renters the opportunity to earn additional reward points and vehicle upgrades. When Hertz Gold Plus Rewards members make a reservation for a midsize car or above, they have access to exclusive vehicles based on their membership tier via its Hertz Ultimate Choice program which allows customers in the U.S. or Canada to choose their vehicle from a range of makes, models and colors available within the zone indicated on their reservation. Alternatively, they may upgrade at the pick-up location for a fee by choosing a vehicle from a premium upgrade zone. As of December 31, 2024, the Hertz Ultimate Choice program was offered at approximately 60 U.S. and Canada airport locations.
For the year ended December 31, 2024, rentals by Hertz Gold Plus Rewards members accounted for approximately 30% of the company’s worldwide rental transactions.
Other Customer Service Offerings
While the company’s Hertz Gold Plus Rewards Members in the U.S. and Canada can regularly skip the counter through its Hertz Ultimate Choice program, starting in 2024, eligible Hertz, Dollar and Thrifty customers in the U.S. have access to the company’s digital check-in product, which allows them to skip the counter, choose coverage options and ultimately a specific vehicle, including upgrade options.
The company offers electronic rental agreements and returns for its Hertz and certain Dollar and Thrifty customers. Simplifying the rental transaction saves customers time and provides greater convenience through access to digitally available rental contracts. The company also offers Mobile Gold Alerts, a service available to participating Hertz Gold Plus Rewards customers, through which a text message and/or email with the vehicle information and location is sent approximately 30 minutes prior to arrival, providing a renter the option to choose another vehicle. The company offers Hertz e-Return, which allows customers to drop off their vehicle and go without the need to visit the rental counter. Customers can also use cashless toll lanes with the company’s PlatePass offering where the license plate acts as a transponder.
Ride Share Rentals
The company has partnered with certain ride share companies to offer vehicle rentals to their drivers in select cities in North America and Europe. This program enables it to rent vehicles on a longer-term basis than traditional business rentals and is a component of its strategy to be an active participant in the future of mobility. Using vehicles for ride share rentals also results in an increased supply of higher mileage, and thus more economical, used vehicles for its vehicle disposition programs.
Drivers for the company’s Ride Share Partners reserve vehicles online through Ride Share Partner websites and applications and pick up vehicles from select locations. Ride share drivers can extend the vehicle rental on a recurring basis.
Rates, Fees and Value-Added Services
The company rents a wide variety of makes and models of vehicles. It rents vehicles on an hourly (in select international markets), daily, weekend, weekly, monthly or multi-month basis, with rental charges computed on a limited or unlimited mileage rate, or on a time rate plus a mileage charge. While vehicles are usually returned to the locations from which they are rented, it also allows one-way rentals from and to certain locations.
The company also generates revenues from charges for value-added services, such as supplemental equipment (e.g., child seats and ski racks), loss or collision damage waivers, theft protection, liability and personal accident/effects insurance coverage, premium emergency roadside service, and satellite radio.
Reservations
The company prices and accepts reservations for its vehicles through each of its brands. Reservations are generally for a class of vehicles, such as compact, midsize or sport utility vehicle. The company’s inclusion of EVs in the fleet in certain cities has enabled it to also provide the opportunity for customers in those locations to reserve an EV rather than an internal-combustion engine vehicle.
The company distributes pricing and content and accepts reservations through multiple channels. Direct reservations are accepted at Hertz.com, Dollar.com, and Thrifty.com, each of which has global and local versions in multiple languages. Hertz.com offers a range of products, prices and additional services, as well as Hertz Gold Plus Rewards benefits, serving both company-operated and franchise locations. In addition to its websites, direct reservations are enabled via the company’s Hertz smartphone application, which includes additional connected products and services. Customers may also seek reservations via travel agents or third-party travel websites.
In the company’s major markets, including the U.S. and all other countries with company-operated locations, customers may also reserve vehicles for rental from the company and its franchisees through local, national or toll-free telephone calls to the company’s reservations center, directly through its rental locations, or in the case of insurance replacement rentals, through proprietary automated systems serving the insurance industry.
Franchisees
In certain U.S. and international markets, the company has found it efficient to issue licenses under franchisee arrangements to independent operators who are engaged in the vehicle rental business. Franchisees rent vehicles that they own or lease and may provide related services to customers, primarily under its Hertz, Dollar or Thrifty brands. In many markets, franchisees operate franchises for multiple brands.
The company continues to issue new licenses, and from time to time, re-acquire franchised businesses or sell company-operated locations to franchisees.
Seasonality
The company’s vehicle rental operations are a seasonal business with decreased levels of business in the winter months and heightened activity during the spring and summer months (its peak season) for the majority of countries where it generates its revenues. To accommodate increased demand, the company typically increases its available fleet and staff in the second and third quarters (year ended December 31, 2024) of the year to add a significant number of part-time and seasonal workers. A number of the company’s other major operating costs, including airport concession fees, commissions and vehicle liability expenses, are directly related to revenues or transaction volumes and thus also increase in the second and third quarters.
Fleet
During the year ended December 31, 2024, the company operated a peak rental fleet in its Americas RAC and International RAC segments of approximately 473,200 vehicles and 138,000 vehicles, respectively.
During the year ended December 31, 2024, the company’s approximate average holding period for rental vehicles sold was 25 months in its Americas RAC segment, up approximately 20% compared to 2023 due to its accelerated fleet rotation initiative that began in the second half of 2024, which prioritized selling older vehicles. In the company’s International RAC segment, its approximate average holding period for rental vehicles sold was 17 months.
The company maintains vehicle maintenance centers that provide maintenance for its fleet, many of which include sophisticated vehicle diagnostic and repair equipment, and are accepted by automobile manufacturers, as eligible, to perform warranty work. Collision damage and major repairs are generally performed by independent contractors.
Other Vehicle Disposition Channels
During the year ended December 31, 2024, the vehicles sold in the company’s U.S. and international vehicle rental operations that were not repurchased by manufacturers were sold through a variety of channels, including dealer direct wholesale channels, direct sales to third parties, retail channels, and auction. The company uses multiple channels to provide greater flexibility and the opportunity for improved returns.
The company-operated retail sales channel, Hertz Car Sales, consists of a network of company-operated vehicle sales locations throughout the U.S. dedicated to the sale of vehicles from its rental fleet. Vehicles disposed of through the company’s retail outlets provide for ancillary vehicle sales revenue, such as warranty, financing, and aftermarket products.
Competition
The company’s principal vehicle rental industry competitors are Avis Budget Group, Inc., which operates the Avis, Budget, ZipCar and Payless brands; Enterprise Holdings, which operates the Enterprise Rent-A-Car Company, National Car Rental and Alamo Rent A Car brands; and SIXT.
History
Hertz Global Holdings, Inc. was founded in 1918. The company was incorporated in Delaware in 2015.
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