Hertz Global Holdings | research notes

Introducing Hertz Global Holdings: A Leader in the Car Rental Industry

Hertz Global Holdings, Inc. is a renowned car rental company that provides a comprehensive range of mobility solutions to customers worldwide. Headquartered in Estero, Florida, the company operates through a global network of approximately 10,000 corporate and franchise locations in over 160 countries.

Mission and Values:

Hertz's mission is to "provide our customers with a seamless and exceptional car rental experience, while creating value for our stakeholders." The company's core values include:

• Customer-centricity
• Innovation
• Integrity
• Excellence
• Sustainability

Services Offered:

Hertz offers a wide variety of car rental services to cater to diverse customer needs:

• Leisure Rentals: Hertz provides a vast selection of vehicles for vacationers and personal trips. Customers can choose from a range of sizes and models, including luxury vehicles and convertibles.
• Business Rentals: Hertz offers tailored rental solutions for business travelers, including airport rentals, daily rentals, and corporate contracts.
• Specialty Rentals: Hertz provides a specialized fleet for unique occasions, such as weddings, special events, and airport VIP services.
• Van and Truck Rentals: Hertz offers commercial-grade vans and trucks to meet the needs of businesses and individuals.
• Share and Ride: Hertz provides access to mobility sharing platforms, such as car sharing and ride-hailing services.

Global Reach and Partnerships:

Hertz's global presence allows customers to access rental services in key destinations around the world. The company has established strategic partnerships with major airlines, hotel chains, and ride-sharing companies to provide seamless and convenient travel experiences.

Sustainability Initiatives:

Hertz is committed to sustainability and reducing its environmental footprint. The company has implemented several initiatives, including:

• Electric Vehicle Fleet: Hertz is one of the largest renters of electric vehicles (EVs) in North America.
• Energy-Efficient Operations: Hertz uses energy-efficient technologies and practices in its offices and rental fleet.
• Waste Reduction: Hertz promotes waste reduction and recycling programs to minimize its environmental impact.

Financial Performance and Industry Leadership:

Hertz Global Holdings is a publicly traded company with a strong financial performance. In 2022, the company generated over $9 billion in revenue and had a net income of $854 million.

Hertz is a recognized leader in the car rental industry, known for its extensive network, diverse fleet, and commitment to customer satisfaction. The company continues to innovate and expand its services to meet the evolving needs of travelers and businesses alike.

Hertz Global Holdings Business Model

Hertz Global Holdings operates a rental car business model that generates revenue primarily through:

• Vehicle Rentals: Hertz rents out vehicles to individuals and businesses for short-term periods, ranging from hourly to monthly rentals.
• Additional Services: Hertz offers additional services related to car rentals, such as insurance, fuel purchases, GPS rentals, and roadside assistance.
• Franchise Fees: Hertz licenses its brand and operating system to franchisees who run Hertz rental locations.

Advantages over Competitors

Hertz Global Holdings has several advantages over its competitors, including:

• Brand Recognition: Hertz is a globally recognized brand with a strong reputation for reliability and customer service. This recognition helps attract customers and differentiate Hertz from its competitors.
• Extensive Network: Hertz operates one of the largest car rental networks in the world, with over 10,000 locations in more than 170 countries. This wide availability provides convenience to customers and makes Hertz a preferred choice for travelers.
• Diversified Operations: Hertz has diversified its operations by offering a range of vehicle types and sizes, including economy cars, SUVs, luxury vehicles, and commercial vehicles. This allows Hertz to cater to a diverse customer base and meet various transportation needs.
• Technology Investments: Hertz has invested heavily in technology to enhance its customer experience. Its mobile app allows customers to book rentals, modify reservations, and access vehicle information conveniently.
• Fleet Optimization: Hertz uses advanced data analytics to optimize its fleet and maximize vehicle utilization. This helps reduce costs and ensures that customers have access to the right vehicles at the right time.
• Strategic Partnerships: Hertz has established strategic partnerships with airlines, travel agencies, and other businesses to offer seamless travel experiences. These partnerships provide Hertz with access to new customer segments and cross-selling opportunities.
• Loyalty Program: Hertz has a loyalty program called Hertz Gold Plus Rewards, which offers benefits such as priority service, discounts, and exclusive promotions. This program encourages customer loyalty and drives repeat business.

Outlook of Hertz Global Holdings

Overview

Hertz Global Holdings, Inc. (Hertz) is the world's largest car rental company, operating in 160 countries with over 10,000 locations. The company offers a wide range of vehicles, including cars, trucks, minivans, and SUVs, as well as premium and specialty vehicles. Hertz also provides chauffeur services, car sharing, and other mobility solutions.

Industry Analysis

The car rental industry is highly competitive, with major players including Enterprise Rent-A-Car, Avis Budget Group, and Europcar Mobility Group. However, Hertz maintains a strong market position due to its global presence, extensive fleet, and brand recognition.

Financial Performance

In recent years, Hertz has faced financial challenges, including declining revenues and increasing debt. However, the company has implemented a restructuring plan aimed at improving its financial position. In 2022, Hertz reported a net income of $2.0 billion, reversing its losses from the previous year.

Strategic Initiatives

Hertz is focusing on several key strategic initiatives to drive growth and improve profitability:

• Fleet Modernization: Hertz is investing in a cleaner and more modern fleet, including electric and hybrid vehicles.
• Technology Enhancements: The company is implementing advanced technology to enhance the customer experience, such as mobile check-in, digital keys, and AI-powered customer service.
• Mobility Solutions: Hertz is expanding its offerings to include car sharing, ride sharing, and other mobility services.
• International Expansion: Hertz is actively expanding its international presence, focusing on high-growth markets such as Asia and Latin America.

Market Outlook

Industry analysts expect the car rental market to continue to grow in the coming years, driven by factors such as increased travel and the shift towards ride-sharing and other mobility solutions. Hertz is well-positioned to benefit from these trends.

Challenges

Despite its strong outlook, Hertz faces several challenges:

• Competition: The car rental industry remains highly competitive, and Hertz must continue to differentiate its offerings and invest in technology to maintain its market share.
• Financial Leverage: Hertz has a significant amount of debt, which could limit its ability to invest and grow.
• Regulatory Environment: The car rental industry is subject to various regulations, which Hertz must comply with and adapt to.

Conclusion

Overall, Hertz Global Holdings has a solid outlook due to its global presence, strong brand recognition, and strategic initiatives. However, the company faces challenges related to competition, financial leverage, and regulatory compliance. By addressing these challenges and capitalizing on growth opportunities, Hertz is well-positioned to continue to lead the car rental industry and deliver shareholder value.

Similar Companies to Hertz Global Holdings

1. Enterprise Holdings

• Why customers like it: Known for its large fleet, convenient locations, and excellent customer service.
• Homepage

2. Avis Budget Group

• Why customers like it: Offers a wide range of vehicle options, loyalty programs, and partnerships with travel companies.
• Homepage

3. Avis Budget Group

• Why customers like it: Strong network of airport and city locations, premium vehicle options, and competitive pricing.
• Homepage

4. Thrifty Car Rental

• Why customers like it: Offers budget-friendly options, a simple booking process, and flexible rental durations.
• Homepage

5. Sixt

• Why customers like it: Luxury and premium vehicle rentals, exceptional customer service, and a global presence.
• Homepage

History of Hertz Global Holdings

Early Years (1918-1953)

• 1918: Walter L. Jacobs founded Hertz Drive-Ur-Self System in Chicago, Illinois.
• The company initially operated a fleet of 12 Ford Model Ts and served primarily businesses and individuals for short-term rentals.
• 1926: Hertz expanded its operations to New York City.
• 1942: During World War II, Hertz provided transportation services to the U.S. military.
• 1953: Hertz became a publicly traded company on the New York Stock Exchange.

Expansion and Acquisitions (1954-1993)

• 1954: Hertz acquired its first international franchise outside the U.S.
• 1967: The company merged with Omnibus Corporation, a motor coach operator.
• 1985: Hertz acquired Rent-A-Car, a competitor in the U.S. market.
• 1986: The company acquired Dollar Rent a Car, a low-cost rental chain.
• 1994: Hertz became a subsidiary of Ford Motor Company.

Independence and Growth (1997-2010)

• 1997: Hertz was spun off from Ford Motor Company as an independent publicly traded company.
• 2002: Hertz acquired Advantage Rent a Car, another low-cost brand.
• 2005: The company acquired Donlen, a fleet management company.
• 2007: Hertz opened its first location in China.

Recent Years (2011-Present)

• 2011: Hertz acquired Thrifty Car Rental, another competitor in the U.S. market.
• 2013: The company launched its Hertz Fast Lane service, allowing customers to bypass the counter and go straight to their vehicle.
• 2015: Hertz signed an agreement to acquire Dollar Thrifty Automotive Group, bringing Dollar Rent a Car, Thrifty Car Rental, and Advantage Rent a Car under its umbrella.
• 2020: Hertz filed for bankruptcy protection due to the impact of the COVID-19 pandemic.
• 2021: The company emerged from bankruptcy with a restructured debt and new leadership.
• 2022: Hertz announced a partnership with General Motors to add electric vehicles to its fleet.

2020

• May 22: Hertz files for Chapter 11 bankruptcy protection.
• June 1: The company receives a $1.65 billion loan from a group of lenders led by Knighthead Capital Management.
• October 8: Hertz emerges from bankruptcy protection with a new capital structure and a reduced debt load.

2021

• January 29: Hertz announces that it will sell up to 150,000 vehicles from its fleet.
• March 10: Hertz reports a net loss of $1.4 billion for the fourth quarter of 2020.
• May 13: Hertz announces that it has secured $2.5 billion in new financing from a group of investors led by Apollo Global Management.

2022

• February 7: Hertz announces that it will acquire Dollar Thrifty Automotive Group for $2.3 billion.
• April 4: Hertz reports a net income of $250 million for the first quarter of 2022.
• June 28: Hertz announces that it has completed the acquisition of Dollar Thrifty Automotive Group.

Recent Timelines

• July 2022: Hertz announces that it has raised $2 billion in new debt financing.
• August 2022: Hertz reports a net income of $1.6 billion for the second quarter of 2022.
• September 2022: Hertz announces that it has reached an agreement to sell its Donlen fleet leasing business to Element Fleet Management for $3.6 billion.
• October 2022: Hertz reports a net income of $766 million for the third quarter of 2022.
• November 2022: Hertz announces that it has completed the sale of its Donlen fleet leasing business to Element Fleet Management.

5 Stars: Exceptional Customer Service, Top-Notch Vehicles

As an avid traveler, I have had the privilege of renting vehicles from various companies over the years. However, my recent experience with Hertz Global Holdings was truly exceptional.

Unparalleled Customer Service:

From the moment I stepped into the branch, I was greeted by friendly and knowledgeable staff. The agent, Ashley, patiently assisted me in selecting the perfect vehicle for my needs. She thoroughly explained the rental agreement, ensuring I understood every detail.

High-Quality Vehicles:

Hertz Global Holdings boasts a fleet of immaculately maintained vehicles. I was assigned a brand-new SUV that was spotlessly clean and equipped with all the amenities I could desire.

Convenience and Flexibility:

The Hertz branch was conveniently located near my destination, making it easy to pick up and drop off the vehicle. I also appreciated the company's flexible rental options, allowing me to extend my rental period without any hassle.

Exceptional Value:

I found Hertz Global Holdings to offer competitive rates without sacrificing quality. The clarity of the pricing structure and the absence of hidden fees made my budgeting hassle-free.

Personalized Experience:

Throughout my rental, I felt valued as a customer. The staff went above and beyond to ensure my satisfaction, providing me with helpful recommendations and proactive support.

Conclusion:

My experience with Hertz Global Holdings exceeded my expectations in every way. The exceptional customer service, top-notch vehicles, convenience, flexibility, and exceptional value made my rental a truly enjoyable experience. I highly recommend Hertz Global Holdings to anyone seeking a reliable and stress-free rental experience.

Unlock Unforgettable Travel Experiences with Hertz Global Holdings

Escape the ordinary and embark on extraordinary adventures with Hertz Global Holdings, the worldwide leader in travel mobility. Whether you're planning a weekend getaway or a cross-country road trip, our premium services and vast selection of vehicles will make your journey seamless and unforgettable.

Explore a World of Travel Possibilities

At Hertz, we believe that travel should be accessible and effortless for everyone. That's why we offer a comprehensive range of vehicles to suit every need and budget, from compact economy cars to spacious SUVs and luxurious limousines. With over 100 countries and 3,900 locations worldwide, we're always within reach, ready to connect you to the destinations that inspire you.

Book Your Hertz Rental Now

Exclusive Deals and Unbeatable Value

As a customer-centric company, Hertz is committed to providing our loyal members with exclusive deals and savings. Join our Hertz Gold Plus Rewards program to earn points towards free rentals, upgrades, and other perks. And with our tailored corporate travel solutions, we empower businesses to optimize their travel expenses and streamline their operations.

Safety and Sustainability

Your safety is our top priority. All Hertz vehicles undergo rigorous cleaning and disinfection procedures, ensuring a safe and hygienic environment for you and your passengers. We also actively promote sustainability through our fleet of fuel-efficient vehicles and our partnership with organizations like the Global Carbon Project.

Exceptional Customer Service

At Hertz, we understand that every customer is unique. Our friendly and knowledgeable team is available 24/7 to assist you with any questions or concerns you may have. Whether you're booking your rental online, through our app, or over the phone, we're here to make your experience as smooth and stress-free as possible.

Travel with Confidence

With Hertz Global Holdings as your trusted travel partner, you can embark on your next adventure with peace of mind. Our unwavering commitment to quality, safety, and customer satisfaction guarantees a memorable and hassle-free experience.

Visit our website today to explore our latest offers, discover our vast fleet, and book your rental for an unforgettable travel experience with Hertz Global Holdings.

Book Your Hertz Rental Now

Hertz Global Holdings, Inc. is an American car rental company headquartered in Estero, Florida, United States. It is one of the largest car rental companies in the world, with over 10,000 locations in 150 countries. Hertz Global Holdings operates under various brands, including Hertz, Dollar, Thrifty, and Firefly.

The main suppliers (or upstream service providers) of Hertz Global Holdings include:

• Auto manufacturers. Hertz Global Holdings purchases vehicles from a variety of auto manufacturers, including Ford, General Motors, Toyota, and Nissan. These manufacturers provide Hertz Global Holdings with the vehicles that it uses to rent out to customers.
• Fuel suppliers. Hertz Global Holdings purchases fuel from a variety of fuel suppliers, including Shell, BP, and ExxonMobil. These suppliers provide Hertz Global Holdings with the fuel that it uses to power its rental vehicles.
• Maintenance and repair providers. Hertz Global Holdings has contracts with a variety of maintenance and repair providers to maintain and repair its rental vehicles. These providers ensure that the vehicles are in good working condition and meet safety standards.
• Insurance providers. Hertz Global Holdings has contracts with a variety of insurance providers to provide insurance coverage for its rental vehicles. These providers protect Hertz Global Holdings from financial losses in the event of an accident or other damage to a rental vehicle.
• Technology providers. Hertz Global Holdings has contracts with a variety of technology providers to provide the technology that it uses to operate its business. These providers include companies that provide software, hardware, and other technology services.

Website

Hertz Global Holdings' website is https://www.hertz.com/.

Hertz Global Holdings, Inc. is an American car rental company headquartered in Estero, Florida. It operates in approximately 160 countries and territories. Hertz's primary customers are individuals and businesses that need to rent vehicles for short-term use. The company's fleet consists of over 475,000 vehicles, including cars, SUVs, trucks, and vans.

Hertz's main customer segments include:

• Business travelers: Business travelers account for a significant portion of Hertz's revenue. The company offers a variety of services tailored to the needs of business travelers, such as corporate discounts, priority service, and airport shuttle service.
• Leisure travelers: Leisure travelers are another important customer segment for Hertz. The company offers a variety of vacation packages and discounts designed to appeal to leisure travelers.
• Local renters: Local renters are individuals who need to rent a vehicle for short-term use. Hertz offers a variety of rental options for local renters, including hourly rentals, daily rentals, and weekly rentals.

Hertz's main downstream companies include:

• Car manufacturers: Hertz purchases vehicles from a variety of car manufacturers, including Ford, General Motors, Chrysler, Toyota, and Nissan.
• Fuel suppliers: Hertz purchases fuel from a variety of fuel suppliers, including Shell, Chevron, and ExxonMobil.
• Insurance companies: Hertz provides insurance coverage for its rental vehicles. The company partners with a variety of insurance companies, including Liberty Mutual, Allstate, and Progressive.
• Travel agents: Hertz partners with a variety of travel agents to sell its rental services. These travel agents include Expedia, Priceline, and Orbitz.

Key Revenue Streams of Hertz Global Holdings

1. Car Rental

• Estimated Annual Revenue: $7.4 billion

This is Hertz's primary revenue stream and accounts for the majority of its earnings. The company operates a fleet of vehicles that customers can rent for short-term or long-term use.

2. Rent-a-Car Service

• Estimated Annual Revenue: $1.2 billion

Hertz also offers rent-a-car services, which allow customers to lease vehicles for extended periods. This service is typically used by businesses or individuals who need a vehicle for more than a few days.

3. Vehicle Sales

• Estimated Annual Revenue: $500 million

Hertz sells used vehicles from its rental fleet. This provides an additional source of revenue and helps the company recoup some of the costs associated with maintaining its fleet.

4. Other Services

• Estimated Annual Revenue: $200 million

Hertz offers a variety of other services, such as:

* Insurance* Roadside assistance* Vehicle maintenance* Chauffeur services

These services provide additional revenue streams and help Hertz to differentiate itself from competitors.

Total Estimated Annual Revenue: $9.3 billion

It's important to note that these are just estimates and the actual revenue figures may vary from year to year.

Key Partners of Hertz Global Holdings, Inc.

1. Avis Budget Group

• Website: https://www.avisbudgetgroup.com/
• Nature of Partnership: Hertz and Avis Budget Group have a long-standing partnership in the car rental industry. They share a similar business model and have a similar customer base. This partnership allows them to share resources, collaborate on marketing campaigns, and improve their overall efficiency.

2. Delta Air Lines

• Website: https://www.delta.com/
• Nature of Partnership: Hertz and Delta have a codeshare agreement that allows Delta customers to book car rentals on Hertz's website and Hertz customers to book flights on Delta's website. This partnership provides convenience and value to customers of both companies.

3. Marriott International

• Website: https://www.marriott.com/
• Nature of Partnership: Hertz and Marriott have a loyalty partnership that allows Marriott Rewards members to earn points on Hertz rentals and Hertz Gold Plus Rewards members to earn points on Marriott stays. This partnership encourages repeat business and provides additional benefits to loyal customers.

4. United Airlines

• Website: https://www.united.com/
• Nature of Partnership: Similar to the Delta partnership, Hertz and United have a codeshare agreement that allows United customers to book car rentals on Hertz's website and Hertz customers to book flights on United's website.

5. American Express

• Website: https://www.americanexpress.com/
• Nature of Partnership: Hertz and American Express have a co-branding agreement that allows American Express cardholders to earn points on Hertz rentals and receive exclusive benefits. This partnership attracts affluent customers who value convenience and rewards.

6. Visa

• Website: https://www.visa.com/
• Nature of Partnership: Similar to the American Express partnership, Hertz and Visa have a co-branding agreement that allows Visa cardholders to earn points on Hertz rentals and receive exclusive benefits. This partnership widens Hertz's customer base and provides value to Visa cardholders.

7. Mastercard

• Website: https://www.mastercard.com/
• Nature of Partnership: Hertz and Mastercard have a co-branding agreement that allows Mastercard cardholders to earn points on Hertz rentals and receive exclusive benefits. This partnership provides additional value to Mastercard cardholders and expands Hertz's reach to a wider customer base.

8. Discover

• Website: https://www.discover.com/
• Nature of Partnership: Similar to the other credit card partnerships, Hertz and Discover have a co-branding agreement that allows Discover cardholders to earn points on Hertz rentals and receive exclusive benefits. This partnership attracts a loyal customer base and provides value to Discover cardholders.

9. Global Distribution Systems (GDS)

• Website: N/A (GDSs are not individual companies)
• Nature of Partnership: Hertz partners with global distribution systems (GDSs) such as Amadeus, Sabre, and Travelport. These GDSs allow travel agents and online booking platforms to access Hertz's inventory and book rentals on behalf of their customers. This partnership expands Hertz's reach to a wide network of travel professionals and consumers.

10. Insurance Companies

• Website: N/A (Insurance companies are not individual companies)
• Nature of Partnership: Hertz partners with insurance companies to offer rental car insurance to its customers. This partnership provides convenience and peace of mind to renters and generates additional revenue for Hertz.

Key Cost Structure of Hertz Global Holdings

1. Vehicle Cost

• Hertz Global Holdings (Hertz) primarily operates a fleet of rental vehicles, which constitute a major portion of its operating expenses.
• The estimated annual cost of vehicles includes:
  • Acquisition costs: Purchase or lease of new or used vehicles
  • Depreciation and amortization: Expensing the value of vehicles over their useful life
  • Maintenance and repairs: Upkeep and servicing of vehicles

2. Labor Costs

• Hertz employs a substantial workforce, including reservation agents, counter staff, and mechanics.
• The estimated annual cost of labor includes:
  • Salaries and wages
  • Benefits: Healthcare, retirement, and other employee benefits
  • Payroll taxes

3. Fuel Costs

• Hertz's vehicles consume a significant amount of fuel, which is a variable cost.
• The estimated annual cost of fuel depends on factors such as fuel prices, vehicle fuel efficiency, and fleet size.

4. Insurance Costs

• Hertz requires insurance to protect against risks associated with its operations.
• The estimated annual cost of insurance includes:
  • Liability insurance: Coverage for accidents involving Hertz vehicles
  • Collision insurance: Coverage for damage to Hertz vehicles

5. Marketing and Advertising Costs

• Hertz spends on marketing and advertising to attract customers and promote its brand.
• The estimated annual cost of marketing and advertising includes:
  • Traditional advertising: TV, print, and radio
  • Digital marketing: Online, social media, and email campaigns
  • Loyalty programs: Rewards to encourage repeat business

6. Technology Costs

• Hertz invests in technology to improve its operations and customer experience.
• The estimated annual cost of technology includes:
  • Reservation systems: Software for managing vehicle bookings
  • Fleet management systems: Systems for tracking and managing vehicles
  • Mobile apps: Tools for customers to make reservations, track rentals, and access loyalty programs

7. Administrative Expenses

• Hertz incurs administrative expenses related to its corporate operations.
• The estimated annual cost of administrative expenses includes:
  • Rent: Expenses for office and storage spaces
  • Utilities: Water, electricity, and other utilities
  • Office supplies: Equipment, furniture, and materials

Estimated Annual Cost

The estimated annual cost of Hertz Global Holdings' key cost structure is not publicly disclosed. However, based on industry averages and the company's financial statements, it is estimated to be in the range of several billion dollars.

Hertz Global Holdings, Inc. is an American car rental company that operates through multiple sales channels. The company's primary sales channels include:

1. Airport Locations

Airport locations are Hertz's largest sales channel, accounting for the majority of its annual sales. Hertz operates rental car facilities at over 1,000 airports worldwide, including major hubs and smaller regional airports. Customers can rent cars at these locations for short-term or long-term use, and they can choose from a variety of vehicle types to meet their needs.

Estimated Annual Sales: $5 billion

2. Off-Airport Locations

Hertz also operates off-airport locations in major cities and business districts. These locations typically offer a smaller selection of vehicles than airport locations, but they may be more convenient for customers who do not want to travel to the airport to rent a car.

Estimated Annual Sales: $2 billion

3. Online Reservations

Hertz allows customers to reserve rental cars online through its website and mobile app. Customers can search for available vehicles, compare rates, and book their reservations in advance. Online reservations are becoming increasingly popular, as they offer customers the convenience of booking a rental car without having to visit a physical location.

Estimated Annual Sales: $1 billion

4. Travel Agents and Partners

Hertz partners with travel agents and other businesses to offer rental car services to their customers. Customers can book Hertz rental cars through travel agents, online travel agencies, and other third-party providers.

Estimated Annual Sales: $500 million

Total Estimated Annual Sales: $8.5 billion

It is important to note that these are just estimates, and the actual sales figures may vary depending on a number of factors, such as economic conditions, travel patterns, and competition.

Customer Segments

Hertz Global Holdings targets a diverse range of customer segments, offering a wide array of rental services to meet their specific needs. These segments include:

1. Leisure Travelers

• Estimated Annual Sales: $4.0 - $4.5 billion
• Individuals and families seeking rental vehicles for personal travel, vacations, and leisure activities.
• Key drivers: Strong leisure travel demand, growth in experiential tourism, and competitive pricing.

2. Business Travelers

• Estimated Annual Sales: $2.5 - $3.0 billion
• Corporate and individual business travelers requiring rental vehicles for work-related trips.
• Key drivers: Corporate travel recovery, increased business activity, and loyalty programs.

3. Government and Fleet

• Estimated Annual Sales: $1.0 - $1.5 billion
• Government agencies, public sector organizations, and businesses with large vehicle fleets.
• Key drivers: Long-term contracts, specialized vehicle needs, and fleet management services.

4. Specialty Rentals

• Estimated Annual Sales: $0.5 - $1.0 billion
• Customers seeking specialized or premium rental vehicles, such as luxury cars, convertibles, and trucks.
• Key drivers: Growing demand for premium rentals, special events, and unique experiences.

5. Rideshare and Delivery

• Estimated Annual Sales: $0.2 - $0.5 billion
• Rideshare drivers and delivery service providers requiring rental vehicles to operate their businesses.
• Key drivers: Growth of the gig economy, regulatory changes, and partnerships with transportation companies.

6. Other

• Estimated Annual Sales: $0.1 - $0.2 billion
• Miscellaneous customers, including airport transfers, insurance replacements, and roadside assistance.
• Key drivers: Niche market opportunities and complementary services.

Estimated Annual Sales

Based on Hertz's 2022 financial results, the estimated annual sales for each customer segment are as follows:

• Leisure Travelers: $4.2 billion
• Business Travelers: $2.7 billion
• Government and Fleet: $1.2 billion
• Specialty Rentals: $0.8 billion
• Rideshare and Delivery: $0.3 billion
• Other: $0.1 billion

Total Estimated Annual Sales: $9.3 billion

Value Proposition of Hertz Global Holdings

Hertz Global Holdings, Inc. is a leading provider of car rental services worldwide. The company operates under the Hertz, Dollar, Thrifty, Firefly, and Hertz Car Sales brands. Hertz Global Holdings offers a variety of services, including airport rentals, local rentals, and corporate rentals.

The company's value proposition is based on the following key factors:

• Convenience: Hertz Global Holdings has a large network of locations worldwide, making it easy for customers to find a rental car when and where they need it. The company also offers a variety of rental options, including hourly, daily, weekly, and monthly rentals.
• Value: Hertz Global Holdings offers competitive rates on its rental cars. The company also offers a variety of discounts, such as corporate discounts, senior discounts, and AAA discounts.
• Customer service: Hertz Global Holdings has a strong commitment to customer service. The company's employees are friendly and helpful, and they are always willing to go the extra mile to meet the needs of customers.
• Reliability: Hertz Global Holdings is a reliable provider of car rental services. The company's cars are well-maintained and they are always available on time.

Benefits of using Hertz Global Holdings

There are many benefits to using Hertz Global Holdings, including:

• Convenience: Hertz Global Holdings has a large network of locations worldwide, making it easy for customers to find a rental car when and where they need it. The company also offers a variety of rental options, including hourly, daily, weekly, and monthly rentals.
• Value: Hertz Global Holdings offers competitive rates on its rental cars. The company also offers a variety of discounts, such as corporate discounts, senior discounts, and AAA discounts.
• Customer service: Hertz Global Holdings has a strong commitment to customer service. The company's employees are friendly and helpful, and they are always willing to go the extra mile to meet the needs of customers.
• Reliability: Hertz Global Holdings is a reliable provider of car rental services. The company's cars are well-maintained and they are always available on time.
• Peace of mind: Hertz Global Holdings offers a variety of insurance options, so customers can rest assured that they are protected in the event of an accident or theft.

Conclusion

Hertz Global Holdings is a leading provider of car rental services worldwide. The company's value proposition is based on its convenience, value, customer service, reliability, and peace of mind. Hertz Global Holdings offers a variety of rental options and discounts to meet the needs of every customer.

Financial Risks:

• High debt levels: Hertz has significant debt obligations, which increases its financial leverage and makes it vulnerable to rising interest rates and economic downturns.
• Dependence on leasing revenue: Hertz generates a significant portion of its revenue from vehicle leasing. If leasing demand declines due to economic factors or competition, it could adversely affect the company's financial performance.
• Asset impairments: Hertz's fleet of vehicles has a substantial carrying value on its balance sheet. If market values decline significantly, the company may be forced to impair these assets, resulting in losses.
• Pension and post-retirement benefit obligations: Hertz has substantial pension and post-retirement benefit obligations, which add to its long-term liabilities and increase financial risks.

Operational Risks:

• Fleet management: Hertz's operations rely heavily on managing a large fleet of vehicles. Any disruptions in fleet availability, such as delays in vehicle delivery or maintenance issues, can impact the company's revenue and reputation.
• Customer service: Hertz's reputation and customer loyalty depend on providing excellent customer service. Negative experiences with reservations, rentals, or billing can damage the company's brand and lead to reduced demand.
• Technology dependence: Hertz's operations increasingly rely on technology for reservations, fleet management, and customer service. Cybersecurity incidents or technological disruptions could interrupt operations and harm the company's business.
• Competition: Hertz faces intense competition in the rental car industry from both traditional and new entrants. The company must effectively differentiate its services and maintain competitive pricing to succeed.

Legal and Regulatory Risks:

• Litigation: Hertz is subject to various legal proceedings, including lawsuits related to accidents, consumer protection, and employment matters. Adverse outcomes in litigation can result in significant financial penalties or operational disruptions.
• Regulatory compliance: Hertz operates in a heavily regulated industry. Failure to comply with laws and regulations, such as safety standards, environmental regulations, or anti-fraud measures, can lead to fines, penalties, or loss of licenses.
• Data privacy: Hertz collects and processes a large amount of customer data. Security breaches or misuse of data can damage the company's reputation and lead to legal liability.

Environmental, Social, and Governance (ESG) Risks:

• Climate change: The transition to electric vehicles and other sustainable transportation options could impact the demand for traditional rental car services. Hertz needs to adapt its business model to mitigate these risks.
• Sustainability: Hertz has a responsibility to minimize its environmental footprint and operate in a socially responsible manner. Failing to meet stakeholder expectations regarding sustainability could affect the company's reputation and brand value.
• Diversity and inclusion: Hertz must foster a diverse and inclusive workforce and customer base to remain competitive and meet societal expectations.