Which Car Hire USA Supplier Generates The Most Revenue Per Car?

Hey everyone,

For those of you that like statistics and fact based blogs – come on now, dont pretend like this stuff is boring and you’re not a car hire nerd :) Here are a couple of stats that you might find intresting. Honest! 

While looking at some numbers from a data post from 2011 regarding the amount of cars each major supplier operates versus the amount of revenue generated, we can grab a snippet of which supplier is generating the most revenue per vehicle for car hire in the USA. Its not an exact science but its in the ball park.

 

Check out these numbers;

Cars in service Total revenue Revenue per car
Avis/Budget 285000 4110000000 14421.05
Dollar/Thrifty 118000 1645000000 13940.68
Hertz/Advantage 320000 4241000000 13253.13
Enterprise/Alamo 920861 11100000000 12053.94

 

We all know that Enterprise/Alamo is the monster player in the market with almost 1 million cars in the market but its surprising to find they are not the top dog when its comes to getting the most revenue per vehicle.

As you can see above the master’s of milking every last dime out of their vehicles is Avis/Budget making on average approximately$14,421.05 per vehicle.

Now the second hand market has been extremely buoyant for the last couple of years, and this is where the car rental suppliers are really making their profits.

So can we assume that Alamo are selling their vehicles before Budget, therefore not getting the most out of the rental revenue but getting more from the second hand market?

If you liked this post and still have a little ‘nerd time’ left to fill why not check the related blog James posted back in December.

Cheers

Simon

 car hire USA

USA Car Hire Supplier Had What In 2011?

Hi all,

2011 has been hard for the average Joe but for Car Hire USA suppliers things couldn’t have been rosier, statistics show a total revenue of $22.4 billion, an 8.1% increase over 2010.

At this time of year I always like to take a look at the statistics I think are the most important; Number of vehicles, Number of pick up locations and total revenue for the top four car hire suppliers.

Alamo Rent A Car

The number one supplier and largest in the U.S. is The Enterprise group consisting of Alamo, Enterprise and National Car Rental in 2011 they had an estimated 920,861 vehicle on the road being picked up from 6187 locations across America including airports and city locations. They had 2011 total total revenue exceeding $1 Billion.

Hertz

The number 2 car hire usa supplier for 2011  is Hertz. Including their budget brand (Advantage Rent A Car), Hertz had an estimated 320,000 rental cars available from 2500 pick up locations bringing in a combined approximate revenue of $4,241,000,000.

Budget Rent  A Car

The Avis/Budget Group consisting of Avis Rent A Car and Budget Rent A Car operated approximately 285,000 USA rental cars out of 2,300 locations bringing in a estimated yearly revenue of 4,110,000,000.

Dollar Rent A Car

Dollar Thrifty Automotive Group consisting of Dollar Rent A Car and Thrifty Car Rental had 118,000 vehicles on the road from an estimated 445 USA locations bringing in a revenue of appropriately $1,645,000,000.

As you can see from these statistics the battle to buy Dollar Rent A Car between Hertz and Budget is very important in securing the number 2 spot in the U.S.

Enterprise continue to dominate the U.S. market in 2011 and the likely hood of anyone toppling them is very slim.

regards,

James

 car hire USA

Who’s The Best USA Car Hire Supplier?

Hi all,

For the past 3 years we have been keeping a keen eye on the annual JD Power Rental Car satisfaction study.

Now in its 16th year, the study measures overall domestic customer satisfaction with USA car rentals at airports by examining six factors (listed in order of importance): costs and fees; pick-up process; return process; rental car; shuttle bus/van; and reservation process.

Overall satisfaction in 2011 averages 758 on a 1,000-point scale, up from 750 in 2010, driven by increases in satisfaction across all six factors compared to 2010.

“Rental car companies continue to build upon the improvements made in 2010 and are bouncing back from the lower satisfaction levels reported in 2008 and 2009,”

Stated Stuart Greif, vice president of the travel practice at J.D. Power and Associates.

“As positive as this increase in satisfaction is, there remains ample opportunity for rental car companies to further delight their customers in the future, particularly in leveraging technology.”

But who was top I hear you cry?

For the last few years Enterprise Rent A Car have run away as top of the car hire tree…. so did they finish top this time?…..The answer – NO

Well what about Budget Rent A Car?…again NO.

Dollar Rent A Car? – NO

Alamo? – NO

Thrifty Car Rental? – again NO…

The overall winner was little known independent car hire company ACE Rent A Car, a domestic specialist who although have been getting good reviews in the past have never quite managed to hit the criteria for entry as beaten all the muti billion pound companies…. so a massive congratulations to them. It appears they truly do live by their company moto of “Take care of the customer and everything will take care of itself.”

Top 10 Car Rental Companies

  1. ACE Rent A Car
  2. Enterprise Car Rental
  3. National Car Rental
  4. Hertz
  5. Alamo Rent A Car
  6. Budget Rent A Car
  7. Dollar Rent A Car
  8. Avis Rent A Car
  9. Advantage Rent A Car
  10. Thrifty Car Rental

Great to see the little guy coming out on top and showing that the advantage of being small is being able to look after the customer correctly.

regards,

James

 car hire USA

One Way Rental Charges To Increase In 2012

Hi all,

As of 2012 car hire USA one rental charges look like they are on the rise.Dollar Rent A Car confirmed yesterday that their top end one rentals; basically any distance over a 1000 miles, will increase from $500.00 to $750.00.

Dollar one way rental charges for 2012

Distance Amount
0 to 200 Miles $50.00
201 to 500 Miles $100.00
501 to 1000 Miles $300.00
Over 1000 Miles $750.00

Other suppliers are thought to be considering altering their own one way rental charges to match Dollar Rent A Car.

Dollar reservations made before the 01/01/12 will be honoured at the current one way rental charges.

regards,

James

 car hire USA

Car Hire USA Looks Healthy In Quarter 3

Hi all,

Three of the four big guns of USA Car Hire released their quarter 3 results this week.

Avis/Budget, Dollar Rent A Car and Hertz all posted extremely healthy results compared to the same period in 2010, promoting the question’ recession! what recession?

The Avis Budget Group reported revenue of $1.6 billion, an increase of 7% versus third quarter 2010. For it’s U.S. arm this represented a revenue increase of 6% mainly due to an increase in volume and additional sales.

Dollar Rent A Car for the third quarter that ended Sept. 30. reported a net income of $66.6 million, or $2.13 per diluted share, compared to a net income of $49.2 million, or $1.62 per diluted share, for the third quarter of 2010. Scott L. Thompson, DTG president and CEO stated;

We are pleased that the company is reporting the highest quarterly profit in its history, we remain keenly focused on profitable revenue growth, productivity initiatives, cost control and disciplined fleet management.”

Hertz also reported a strong 3rd quarter with worldwide revenues of $2.4 billion, an increase of 11.3% year-over-year boosted by the growth in U.S. insurance replacement; 30.9% volume growth in their low cost bran; and 14.4% revenue growth in worldwide equipment rental which helped them generate a Corporate EBITDA margin of 42.1%for the quarter.

What about Alamo? I hear you cry. Well Alamo Rent A Car, who are owned by Enterprise Holdings are the only major USA Car Hire company to be privately owned and therefore are not required to post quarter results however they have provided highlights of its fiscal year; recording $14.1 billion in worldwide revenues, up more than 12% from $12.6 billion in 2010, which likewise represented a 4% increase over fiscal 2009.

So in summary Car Hire USA looks extremely healthy, a very buoyant second hand car hire market has helped boost revenue and demand is exceeding supply.

With all this money the major car rental companies are making where would you like to see improvement?

regards

James

 car hire USA

Florida Car Hire – Which Vehicles Are Being Collected From Sanford?

Hi all,

Back in September I posted on the usrentacar blog about the vehicle type’s being collected by our customers from Orlando International Airport. This post proved to be very popular and at present is the most viewed post of 2011.

The information collected is supplied by our actual customers either via the usrentacar app or by the post rental review email we send every customer.

Below is a list of Florida Car Hire vehicle types being collected from Sanford International Airport.

Vehicle Category Alamo Budget Dollar
Economy Ford fiesta,

Chevy Avero

Hyundai accent,

Nissan versa

Chevy Aveo,

Nissan Versa

Compact Kia Forte, Nissan Sentra ,

Ford Focus

Ford focus
Intermediate Dodge Caliber, Nissan Altima,

Hyundai Sonata

Dodge Caliber,

Ford Fusion

Standard n/a n/a chrysler malibu
Full Size Chevrolet Impala,

Dodge Charger

Ford Crown Victoria, Chevrolet Malibu Chevy Impala,

Ford Taurus

Premium Buick Regal lincoln towncar Ford Crown Victoria
Luxury Cadillac CTS Hyundi Genesis lincoln towncar
Convertible Ford Mustang,

Crysler Seabring

Ford Mustang,

Mitzubishi Eclipse spyder

Ford Mustang
7str Minivan Dodge Grand Caravan,

TOWN AND COUNTRY Chrysler

Chrysler voyager town and country people carrier, Dodge Dodge Grand Caravan Dodge grand caravan
8str Minivan Toyota Sienna, n/a n/a
12str Minivan n/a Ford E350 Ford E350
15str Minivan Ford Econoline n/a n/a
Intermediate SUV Jeep Patriot Dodge journey Ford escape
Standard SUV Jeep Grand Cherokee,

Chevrolet Traverse

Chevrolet Equinox, Jeep Grand Cherokee Ford Explorer
Full Size SUV Chevroleot Suburban ,

Dodge Durango

ford explorer, Dodge Durango, GMC Acadia Chevrolet Tahoe

n/a – not applicable, supplier doesn’t offer this category.

Please note that the information above is provided by usrentacar.co.uk customers and does not guarentee the make or model described. The information also doesn’t take in to account any upgrades either purchased locally or given free of charge by the supplier.

As you can see the vehicle types generally do not waiver that much from Orlando International Airport, although it was interesting to note that I could find no alternative Convertible being given by Dollar Rent A Car, all our customers received Ford Mustang in Florida.

What vehicles have you collected from Sanford?

regards,

James

 Florida car hire

Dollar Locations Withdraw From Tour Op’s Program

Hi all,

Most USA car rental locations in the America are run as franchises, this gives the owner of the particular franchise the option to work with tour operators, like ourselves, or not.

This morning we have received word from Dollar Rent A Car stating a couple of locations that have opted out of the tour operator program and will no longer be bookable for any tour operators; basically they will only be accepting domestic bookings.

Dollar Locations

Dollar Location Address Date service will stop
SAN FRANCISCO SHERATON

SHERT ON  FISHERSMANS WHARF 15/12/2011
MIAMI HILTON DOWNTON

1601 BISCAYNE BLVD. 31/10/2011

The Miami car hire location has never really been that popular to collect from but the Fisherman’s Wharf location is a bit of a shame, although Dollar do offer an office out of O’Farrell street approximately 2.5 miles away.

Any rentals booked to collect from these rental dates after the date the service stop’s will be honoured.

regards,

James

 car hire USA

Current Car Hire Wait Times At Orlando International Airport

Hi all,

Back in July I posted about the current car hire wait times at Orlando International Airport,  today I thought it might be an ideal time to revisit this post and see if any of the supplier have managed to decrease their queue times.

Wait Time is a feature of the usrentacar voucher app, which can be downloaded for free from either the apple store or the Android Market, the app allows usrentacar customers to view the wait time for their specific supplier for that day or display the overall average time for that location. All the times displayed are specific to the customers pick up location and supplier.

Customer’s are encouraged to leave their own wait time which helps us build up the appropriate data.

In July when I posted about the average wait times at Orlando International Airport, Alamo Rent A Car and Budget Rent A Car were top of the tree with an average wait time of 23 mins, 3 months on lets take a look at the results.

Average Supplier Wait Time at MCO

Dollar Rent A Car – Average Wait Time – 12 Minutes

Alamo Rent  A Car – Average Wait Time – 16 Minutes

Budget Rent A Car - Average Wait Time – 17 Minutes

So each of our suppliers Wait Time’s have improved since July, however hats off to Dollar Rent A Car who have decreased their average wait time at Orlando International Airport from 30 minutes to just 12 minutes! Great work guys.

What are you experiences of collecting from Orlando International Airport?

regards,

James

 Florida car hire

Dollar Go It Alone, Alamo Dispute Buffalo And USA Petrol Prices

Hi all,

Quite a few things happened yesterday but none that really warranted their own post so I thought I’d amalgamate them all in one bite size article.

Dollar Rent A Car

First off the bat is Dollar Rent A Car, who after receiving no bids within its 10th October deadline have decided to push ahead with its own stand alone plans.

Dollar’s plan of action is to begin its share repurchase program, in the next 4 quarters Dollar Thrifty plan to purchase $400 Million worth of their own stock and hope to repurchase stoke used in privately negotiated transactions.

Dollar also reiterated their expectations for 3rd quarter 2011 results. DTG still expects car rental revenue to increase by around 2% compared to the same time period in 2010. 3rd quarter revenues are expected to be around $110 to $120 million excluding expenses involving a possible takeover, compared to $93.7 million for 2010. The company noted that it expects gains from sales of risk vehicles to be approximately $18 million in the 3rd quarter of 2011, compared to approximately $10 million of gains in the 3rd quarter of 2010.

Alamo Rent A Car

Alamo’s Buffalo location seems to have been out bided, as 7 companies bid for the 6 available car rental slots at the airport.

usrentacar.co.uk understands that Alamo are unhappy with the way the biding has been handled and will be taking further actions.

Petrol

Strong statistic’s provided by Wexindex show although petrol has dropped slightly, lack of supply could see a  steady increase in USA petrol prices shortly.

Another good reason to consider our gold rate which includes your first tank of fuel.

regards,

James,

 car hire USA

What’s The Hold Up With The Dollar Thrifty Deal?

Hi all,

News has been pretty scant on the proposed Hertz buyout of  Dollar Thrifty since Budget pulled out of the deal. So I thought today might be a good time to discuss where I believe the deal is at and what the possible stumbling blocks could be.

Hertz are still very keen to complete the purchase, and looking at recent market share analysis you can see why! At present Enterprise Holdings including Alamo National have a market share of around 40% and are the clear market leaders, up next is Hertz with around 20%, Avis Budget have 17% and Dollar Thrifty commands 5.7% , the top 4 companies combined have 83% of the total U.S. Car Rental market.

So Hertz’s move to buy Dollar Rent A Car will see them cement their position as the number 2 car rental company in the U.S.

Since Dollar posted a record share price high in June, a volatile market and the withdrawal of the Avis Budget  offer, Dollar’s share price has fallen 33%, even with this decline Hertz may be forced to offer $70 a share to entice the share holders to sell, this represents a 24% premium on current stock price and the second-biggest gap of any pending U.S. deal over $1 billion. However the underlying factor is that Dollar turns over higher profits than Hertz and are presently a very health and cash rich company.

The major stumbling block I can see is the potential sale of the Hertz owned Advantage Rent A Car brand. Part of seeking FTC approval for the deal would require Hertz to sell off it’s own economy brand, but with a deteriorating  U.S. market, who will have the cash or even want to take on the brand?

Dollar have set a deadline of the 10th October for all final bids to be in, however I think with Hertz being the only potential bidder this deadline will be extended.

However look for Hertz to want too get this deal done quickly rather than face competition from a newly united Avis Budget.

I’ll continue to monitor this deal closely and keep you all updated.

regards,

James,

 car hire USA


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