industry update october 4, 2013 jeff coggin assistant vice president, tmc sales for world travel,...
TRANSCRIPT
Industry Update
October 4, 2013
Jeff Coggin
Assistant Vice President, TMC Sales
for World Travel, Inc.
Why Grow?
Economies of scale – Increased efficiency
Easier access to capital and other resources
Shark Tank: “The big guys will crush you.”
Opportunities for personal and/or career development
Job security
Human nature – always striving to do more
The definition of Success
Car Rental Industry Post 9/11 industry
˗ National/Alamo: Private Equity
˗ Avis/Budget: Public
˗ Hertz: Private Equity then Public
˗ Dollar/Thrifty: Public
2007: Enterprise acquires National and Alamo˗ Family Owned
˗ Now almost 50% of the overall market
˗ EHI share with World now 51.5% up from 35.3%
Key factors in success˗ Get team on board
˗ Share plans broadly
˗ Integrate cautiously
˗ Protect the culture
˗ Gain trust
About Our Company
$15.4 billionin annual revenue
74,000employees
1.3 millionvehicles
8,200neighborhood and airport locations
Ranked #20on Forbes list of America’s Largest Private Companies
BBB+, Baa1only investment-gradecar rental company
U.S. Market Shares: $23.6B
Source: Auto Rental News (2012)
Hertz Acquires Dollar Thrifty
April 2010: Hertz bids $41 per share for DTG
July 2010: Avis bids $46.50
September 2010: Avis bids $48, Hertz bids $50, Avis bids $53
˗ Hertz ends pursuit of DTG
˗ Period of regulatory challenges (Avis)
May 2011: Hertz bids $72
September 2011: Avis withdraws
October 2011: Hertz withdraws
August 2012: Hertz finalizes deal at $87.50 per share ($2.3 billion)
˗ Hertz divests the Advantage brand
2006 on-airport market positions
Source: Airport Authorities; 99% of airports reporting for June ‘12
2012 on-airport market positions
U.S. Airport Market Shares
Industry Growth/Acquisition
Avis
˗ June 2011: Acquires Avis Europe for $1 billion
˗ January 2013: Acquires Zipcar for $500 million
˗ July 2013: Acquires Payless for $50 million
˗ August 2013: Acquires 50% stake in Brazilian licensee ($50 million)
Hertz
˗ July 2011: Hertz rebrands car sharing to Hertz On Demand
˗ April 2013: Investment in China Auto Rental
˗ August 2013: Expands Firefly brand to US
˗ 20 locations by the end of this year
Enterprise Holdings, Inc. Car Share
˗ August 2011: Philly Car Share
˗ May 2012: Mint Cars On-Demand
˗ May 2013: IGO CarSharing
˗ July 2013: Zimride
November 2011: Acquire Citer (France) and Atesa (Spain)˗ Network re-branded to Enterprise February 2013
˗ Complements existing network in the United Kingdom, Germany and Ireland
March 2012: Strategic Investment in eHi Auto Services - China Expansion in to the following countries:
BulgariaCroatiaCyprus
MacedoniaMoldova
MontenegroRomaniaSerbia
BrazilPolandPeru
TurkeySlovakiaGreeceJamaicaAlbania
Czech RepublicBritish Virgin
IslandsUruguay
ItalyPortugalBosnia &
Herzegovina
NetherlandsTurks & Caicos
AustriaHungary
Cayman IslandsSlovenia
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Citer/Atesa Re-Brand
Europcar Strategic Alliance
2007 – Europcar gains license to National marks in EMEA
2008 – Enterprise Holdings enters into a Strategic Alliance with Europcar
August 2013 – Strategic Alliance expires, Europcar continues to have the rights to use the National marks under certain conditions
The Drive Alliance
Two Global Brands. 8,200 Global Locations. More Than 40 Countries and Territories.
Countless Opportunities to Serve You.
Whether you need a car around the corner or around the globe, the Drive Alliance has you covered.
European Car Rental Market: $12.5B
Coverage Summary
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Emerald Club and Enterprise Plus loyalty programs are linked by the Drive Alliance
• Members can earn at any National or Enterprise location in the U.S. and Canada
• Members can earn at any Enterprise location in Europe
• All credits earned will reward customers with free days and higher tier status within the club
• Free Days Can be Redeemed at any National location in North America
• Members can earn at any Enterprise location worldwide.
• All points earned will reward customers with free days and higher tier status within the club
• Free Days can be redeemed at any Enterprise location in North America
• ePlus redemption at all Enterprise locations worldwide is anticipate spring of 2014
North AmericaNorth America, Europe
and Middle East
Europe
UK Germany Ireland France Spain Portugal Italy Greece Bulgaria Cyprus Romania Macedonia
Serbia Bosnia Montenegro Hungary Austria Slovakia Turkey Poland Netherlands Czech
Republic
Loyalty Clubs accepted: ePlus Emerald Club
The Drive Alliance Benefits
Benefits of having two brands:
˗ One global contact with localized support
˗ Customized billing solutions for your accounts (November 2013)
˗ One global agreement
˗ Negotiated pricing available in all countries
˗ Agent just shops ET and ZL
Stronger European network
˗ Now covers more than 90% of EU car rental market
˗ 100% compliance to agreement T&Cs
˗ Enterprise service
Thank You