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Car Rental
Rental Car Industry Trends
•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future
1997
2002
2007
2007
2009
2010/2011
2010/2011
2012-2013
2016
Rental Car Industry Trends
•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future
0
5
10
15
20
25
30
20052006
20072008
20092010
20112012
20132014
2015
U.S. Car Rental Revenue (Billions)
$20.59
$27.11
U.S. Car Rental Revenue (Billions)
U.S. Car Rental Market Share (Top 227 Markets)
20.0%
25.0%
30.0%
35.0%
40.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016**
Chart Title
Alamo Enterprise National Avis Budget Payless Hertz Dollar Thrifty
Source: Airport Provided Gross Revenue Reports **2016 January -June
Hertz Dollar Thrifty
Avis Budget Payless
Alamo Enterprise National
37.3%
29.9%
27.1% 26.8%
31.0%
40.4%
AEN 37.3%
ABP 27.1%
HDT 29.9%
• Industry Revenue Up $335 Million (2.3%)
0
500
1000
1500
2000
2500
20052006
20072008
20092010
20112012
20132014
2015
U.S. Car Rental Fleet ( Thousands)
1,629
2,182
U.S. Car Rental Fleet (Thousands)
2015 U.S. Car Rental Fleet
0
200000
400000
600000
800000
1000000
1200000
1400000
Other Avis Budget Payless Hertz Dollar Thrifty Alamo Enterprise National
Other Avis Budget Payless Hertz Dollar Thrifty Alamo Enterprise National
Alamo Enterprise National 1,166,828
Hertz Dollar Thrifty 499,100
Other 150,620
Avis Budget Payless 365,000
Rental Car Industry Satisfaction: 2006-2015 Overall Satisfaction Index Scores Trending – Industry level
Rental Car Business and Leisure Satisfaction 2006-2015
Overall Satisfaction Index Scores Trending – Business and Leisure/Personal
Note: Beginning in 2011, the Business segment includes customer responses for purpose of rental car for "business" and "both business and leisure/personal"
758
740
720724
738
753
762
771 772
802
771
758
744740
759 762
774 777 774 796
700
725
750
775
800
825
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Inde
x Sco
re(B
ased
on
a 1,
000-
poin
t sca
le)
Study Year
Total Industry Business Leisure/Personal
Rental Car Industry Trends
•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future
Overview Presentation
August 2016
A Global Leader in the Car Rental Industry
11,000 locations
580,000 vehicles
38 million transactions
142 million rental days
$8.6 billion
annual revenue
Diversified Revenue Sources
Commercial vs. Leisure
60% 40%
Americas vs. International
30% 70%
On-Airport vs. Off-Airport
30% 70%
Avis vs. Budget
35% 60%
Zipcar
Locations in more than 180 countries and a leading position in most major markets
30
Strategic Plan
Driving Sustained, Profitable Growth
Strategically Accelerate
Growth
Put the Customer First
Drive Efficiency Throughout
the Organization
Expand Our Global
Footprint
The Avis Europe transaction reunited our world-class brands globally, and Zipcar is the worldwide leader in car sharing
New Markets
Acquisitions of Southern California, Scandinavia and Poland will drive substantial revenue and cost synergies
Licensees
Maggiore, Payless and Apex enhance our long-term growth potential and provide attractive returns
Additional Brands
Expanding our Global Footprint
We have significantly expanded Budget in Europe, Payless in North America, Apex in Australia and Zipcar globally
Organic Expansion
Proprietary technology drives Zipcar’s leadership
and innovation
Zipcar operates the largest
member-based, car sharing
network in the world
– Nearly one million members
– Over 500 college campuses
– Enabling simple and responsible urban living
Locations in the United States, Canada and Europe
Growth opportunities in existing markets, from new services and through
international expansion
Leverages Avis Budget infrastructure
Zipcar Meets Emerging Consumer Needs
Hertz
1918 Founded in Chicago by Walter Jacobs
1923 Acquired by John Hertz
1925 Rail-Drive initiated
1932 Fly-Drive initiated at Chicago’s Midway
1972 Hertz Gold service begins
1987 Acquired by Ford
1988 Headquarters moved to Park Ridge, NJ from New York City
2005 Ford sells company to private equity
2006 Hertz becomes publicly traded
2015-2016 Company relocates headquarters to Estero, FL
34
Corporate Headquarters Relocation to Estero, Florida
35
Firefly Brand
• Originated in 2013 as a replacement for Advantage
• Brand discontinued in the US in 2016
• Was operating at 11 US markets: Philadelphia Las Vegas
Oakland Miami
San Francisco Orlando
San Jose Phoenix
Seattle Denver
Los Angeles
• Customers transitioned to Thrifty
36
Hertz Equipment Rental
• Started in 1965
• Spin-off completed in 2016
• Hertz realized $2 billion in transaction
• Now operates as a standalone publicly traded company
• New name is HercRentals
37
“Take care of your customers
and employees first, and growth
and profits will follow.”
- Founder Jack Taylor
• Founded in 1957, and still family owned and operated
• One of America’s largest private companies (Forbes)
• More than 1.9 million vehicles worldwide
• More than 1 million transactions per week
• More than $20 billion revenue
• More than 97,000 employees
• More than 9,000 locations
Key Statistics
Pam Nicholson – President/CEO
Chrissy Taylor- COO
40
Global Footprint
85 Countries Worldwide
2007 2008 2009 2010 2011 2012 2013 2014 2015
JD Power Performance Trend
1
2
3
7 4
Rental Car Industry Trends
•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future
Three basic transportation services Car &
Vanpooling Car Rental
For-Hire Driver Taxi Limo
Two Primary Services at Airports Car Rental For-Hire Driver
Taxi Limo
Car Rental = TURO
Car Rental
47
Home Page- “Rent the Car…Own the Adventure”
“PICK YOUR PROTECTION
PACKAGE”
reality:
Advertising Service at 300 + Airports
reality:
Advertising Curbside Delivery- “Never Wait At the Rental Counter Again”
50
“This fee accounts for Liability insurance, emergency roadside towing, and payment processing”
“Pick up and return the car at the airport. You’ll arrange the details with Daniel later”
Concession Fee’s Paid To Airports in the U.S.
Concession Fee’s Paid To Airports in the U.S.
$0.00
Concession Fee’s Paid To Airports in the U.S.
Two Primary Services at Airports Car Rental For-Hire Driver
Taxi Limo
57
Impact to Car Rental
The Facts: Certify and other agencies are reporting on transactions which is a misleading figure Car rental = 1 transaction TNC= No Less Than 2 The only way to measure the impact is to understand the entire travel experience
Confessions of a Car Rental Employee
• There are times I do not rent a car when traveling • There are times I rent a car while traveling and
use a taxi or UBER • There are times when I am in St Louis when I am
headed to dinner and plan to have more than one drink. I use a taxi or UBER
Car Rental Industry Growth
60 -10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016***
8.6%
6.1%
4.1% 4.1% 5.2%
-8.09%
-.7%
5.7%
3.5% 2.5%
7.3%
Airports have the Ability to Evaluate and Understand the Impact
• Do you have transactions from all car rental companies?
• Do you have transactions from all other forms of transportation?
• Are you sharing that information?
Rental Car Industry Trends
•Rental Car History •Industry Update •A Word from Our Sponsors •Defining Transportation •The Future
The Future
•Plug in Electric Vehicles •Autonomous Cars •On the Verge of Convenience
•Telematics/Car Share Technology at Airports
•Airport’s Evolution…Car Rental Wants to Join!
No… Actually we don’t
I WANT MY P.E.V.
Plug In Electric Vehicles
• PEV’s sold from 2008-2016 • 506,450
• Total Vehicles Sold • 115 Million
.44%
Plug in Electric Vehicles
Total Vehicles Sold 18.04 Million
.37%
PEV’s Sold from Aug 2015- August 2016 68,415
Why Aren’t PEV’s Being Produced/Purchased?
10 Electric Vehicles with the Best Range
Smart - 68 miles- $25,750/$18,250 Focus - 68 miles- $29,170/22,000 i3- 81 Miles- $43,350
Spark - 82 miles- $25,170/$20,000 E Gulf - 83 miles- $35,450 Leaf - 84 miles- $29,010
Range Anxiety
10 Electric Vehicles with the Best Range
B Class - 87 miles- $41,450 500e - 87 miles- $32,300/$24,800 Soul- 93 Miles- $33,700/$25,000
Tesla S 85D – 270 miles- $85,000 Tesla S 70D - 240 miles- $75,000
FASTEST RECHARGE 40 Minutes-453 Supercharge Stations 4 Hours- Normal Recharge
Range Anxiety
Autonomous Cars
Cost Repair Reliability Program Questions: Hit the Wall or Hit the Human? Refueling?
On the Verge of Convenience – Telematics
• What is Vehicle Telematics? • The integrated use of telecommunication and
informatics • Most common example is Navigation System
• Why is this the future? • Communicate with the vehicle beyond location
• Mileage • Fuel
• Communicate with the vehicle to unlock and enable • Technology in car sharing is costly due to equipment
needed in each vehicle. This eliminates that cost
Airport’s Evolution…Car Rental Wants to Join!
Airports Today
Shopping Friendly Environment = Revenue
Car Rental Facilities
Dark Grey Uninviting
Car Rental Facilities are not Parking Garages!
•Retail Centers
•Where Customers Make Purchasing Decisions
•Where Employees Spend their Days
•They are an Extension of the Airport
Thank You!
Do We Have Time for One Last Point about Consolidated Facilities?
Find Apple
Coca Cola
Hilton
Ford
Taco Bell
Chrysler Southwest
McDonalds
Burger King Starbucks
Pepsi Mercedes
Toyota Puma
Nike
Adidas
Apple Microsoft
United
Did you find it?
Find McDonalds
Did you find it?
Let’s try it one more time
Find Coca Cola
Hilton
Ford
Taco Bell
Chrysler Coca Cola
Southwest
McDonalds
Burger King Starbucks
Pepsi Mercedes
Toyota
Puma
Nike
Adidas
Apple
Microsoft
United
Did you find it?
Try again…
find Coca Cola
Can we conclude that we recognize icons and logos easier than we recognize the words?
Airport Signage for ALL Customers
Thank you
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