The buzz around the Hertz Dollar Rent A Car deal hasn’t really died down yet, yesterday both companies released statements confirming the deal at $87.5 per share equating to a buyout of $2.6 Billion, Hertz also confirmed that they have a buyer for their low cost brand Advantage Rent A Car who equate to about 1% of Hertz’s overall sales.
USA car hire is basically split in to three sales tiers, Premium, Mid and Value. At present Hertz are competing in the Premium tier and through their Advantage brand, the value tier.
With the purchase of Dollar and Thrifty I believe they will attack all three markets.
The example above only includes suppliers that have made an impact in the UK outbound market it does not include value brands such as Fox Rent A Car, Payless Car Rental or Mid-Tier companies like Enterprise.
As you can see from the example above Hertz’s three pronged attack really allows them to compete in all tiers while at the same time protecting their Premium brand.
I also found it interesting that Hertz CEO Frissora confirmed they will position Thrifty as a “Spartan brand”, I assume this mean competitive?
Do you think the Hertz/Dollar deal is good for the consumer?
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