2012 was an interesting year for Hertz, they cemented their position as the second largest car rental supplier in the USA by finally completing the long drawn out process of purchasing Dollar Thrifty and sold off their value brand Advantage Rent A Car to FSNA but what effect did this have on their 2012 results?
Car rental revenues for 2012 increased 7.8% to $7.6 billion compared to 2011. Global revenue was also up to around $9 Billion (Hertz don’t just offer car rental you know) that’s growth of 8.7%.
For USA car hire, which is the part we’re most interested in Hertz reported a 9.6% increase to $4.9 billion compated to 2011. The company reports that this was driven by strong off-airport revenue and a double-digit increase in Advantage revenue and one-and-a-half months of Dollar Thrifty.
Fourth Quarter Results
Hertz’s fourth quarter results were again very positive with an increase of 15.1% for global revenue to $2.3 Billion.
Car hire USA revenues which included 43 days of Dollar Thrifty ownership increased 24.5% for the quarter.
One slight blip on the Hertz radar was the performance of European car hire which saw revenues declined by 9.8% in the fourth quarter.
Mark Frissora, Hertz Chairman & CEO
We continue to make significant progress reducing fleet expenses, our largest operating cost, and we are encouraged that Dollar Thrifty synergies are likely to exceed our earlier forecasts. Additionally, we are off to a fast start this year with January 2013 car rental RPD at U.S. airports up 6% for Hertz and 2.6% for Dollar Thrifty.
As a colleague of mine quipped “Dollar thrifty synergies means redundancies” but obviosuly that is the nature of the beast, you don’t need 2 people to do 1 persons job.
What Hertz have planned for Dollar Thirfty is still anyone’s guess but you’ll be the first to know when we do.