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

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 Peak Season Charges For 2012

Hi all,

In late July and early August I posted about our suppliers releasing 2012 rates for Florida Car Hire which in itself was a bit of a novelty, in the past we have generally received bookable rates after the Summer peak season has finished, roughly around October time, so the early bird rates were much appreciated.

The interesting thing about these new rates is the introduction of a Florida peak season surcharge. Now I’ve been in car rental for around 10 years and this is the first time I can ever recall our suppliers issuing a peak season surcharge on rentals in Florida for Summer (July and August) and Winter (Christmas) 2012 so far in advance. At present there are peak season surcharges in place in every other location in the states apart from Florida.

We’ve had moments when suppliers have sold out or issued surcharges due to limited volume. They are usually issued a couple of weeks before pick up, at most a month, and are usually on the specialist vehicles like the Convertible and 12 & 15 seater minivans  but we’ve never received a full peak season surcharge a year in advance.

The terrible Tsunami that struck Japan this year caused problems for the car rental companies as supply of maintenance parts all but dried up, this did cause a very real shortage of available cars to rent, which utlimatley lead towards suppliers giving the option to contractors to either take an added surcharge or a very early stop sale.

How does this effect 2012

Suppliers are predicting that demand for USA car hire will exceed supply. Some of the main suppliers have actually decreased the amount of vehicles they have for hire and with a buoyant domestic market suppliers are proving more profitable by selling to their U.S. customer base.

The larger suppliers who have actually grown their fleet, for example Alamo, I imagine will want to protect themselves from the knock on effect caused by other suppliers selling out. I know that sounds weird, as surely they’d be happy with the extra business?

However companies like Alamo Rent A Car have contracts in place with major companies based on availability which they would not want to risk.

In my opinion peak season surcharges in Florida are here to stay for the time being, although over time we may see it become more vehicle specific, convertibles, 7, 8, 12 and 15 seater minivans spring to mind.

Remember these surcharges are not exclusively given to us, these surcharges are levied to all car hire brokers and tour operators in the UK and Europe.

Here at usrentacar.co.uk we are trying our best to swallow as much of the surcharge as possible and pushing our suppliers to extend the early bird rates we have at present for as long as possible, remember you can reserve your Florida Car Hire with a £50 deposit, the balance being due 8 weeks prior to departure.

What’s your take on Florida peak season surcharges?

regards,

James

 Florida car hire

Letter From Dollar Thrifty To Hertz And Avis Budget

Hi all,

Last week Dollar Thrifty sent a letter to both Hertz and Avis Budget asking them to reply with their best and final offers to purchase the Car Hire USA company.

I’ve managed to see a copy of this letter which I have posted below

August 21, 2011

Mr. Ronald L. Nelson

Chairman and Chief Executive Officer Avis Budget Group,

Inc. 6 Sylvan Way Parsippany,

New Jersey

07054

Mr. Mark P. Frissora

Chairman of the Board and Chief Executive Officer Hertz Global Holdings,

Inc. 225 Brae Boulevard Park Ridge,

New Jersey

07656

Dear Ron and Mark:

As you are aware, Dollar Thrifty has worked cooperatively with each of Avis Budget and Hertz for many months in an effort to obtain antitrust regulatory clearance for a possible business combination transaction. We understand that these efforts have been fruitful, and believe that each of Avis Budget and Hertz is well positioned to complete the regulatory process in a manner that would permit a combination to be completed with limited economic impact. We appreciate the efforts made by each of your companies as well as your continued interest in Dollar Thrifty.

In light of the regulatory progress that has been made, we believe that it is time to ascertain whether a transaction can be accomplished with Avis Budget, Hertz or another party on terms that our Board of Directors determines are in the best interests of Dollar Thrifty and its shareholders. Accordingly, our Board has determined that it will solicit best and final definitive proposals for submission in early October. Based on the results of this process, we will consider what actions would be in the best interests of Dollar Thrifty and its shareholders. While the details of our process will be furnished separately by our financial advisors in the coming days, I wanted to provide each of you with advance notice in order to give your companies ample preparatory time in which to complete your regulatory efforts. As you can appreciate, in view of the unprecedented opportunity that each of Avis Budget and Hertz has had to assess and mitigate in advance the antitrust regulatory risks of a transaction with Dollar Thrifty, any proposal that requires our shareholders to assume any portion of such risk is unlikely to be acceptable to our Board or shareholders.

Please do not hesitate to let me know if there are any questions.

Very truly yours,

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

Scott L. Thompson
President and Chief Executive Officer

A very interesting letter I’m sure you’ll agree. On a positive note it does look like the end is near in this epic saga.

Who do you think will purchase Dollar Thrifty?

Kind regards,

James,

 car hire USA

My Take On The Dollar Thrifty Buy Out

Hi all,

As I’ve reported over the past year a couple of companies have lodged official bids to purchase Dollar Rent A Car who also own Thrifty Car Rental. As this process seems to have dragged on I thought it might be a good time to briefly speak about where this deal is right now and what the possible out come could be.

Originally Hertz were the first company to show an interest in purchasing Dollar Thrifty, Hertz required a leisure arm and Dollar Thrifty fit perfectly in to that bracket.  The offer was in the process of being presented to the shareholders when Avis Budget decided to enter in to the bidding. For Avis Budget the purchase would signify a massive boost in market share.

The Avis Budget bid was accepted in principle and both parties handed the details over to the FTC for approval.

The issues with any purchase of Dollar Thrifty with the FTC is, what is best for the customer, does the purchase of one of America’s most successful, and at present cash rich companies, reduce competitiveness within the car rental industry, reducing consumer choice and in doing so push up pricing?

In my opinion the Avis Budget deal would prove very hard to push through, and the amount of time the FTC is taking over deliberating on it seems to back my thinking.

With Dollar Thrifty seemingly preferring the Avis Budget deal, Hertz issued a statement stating they would concentrate on their low cost brand, Advantage Rent A Car…

Then on the 10th May Hertz came back to the party with an improved offer, they also seemed to have a plan on how to win the FTC over by agreeing in principle to sell on their own lesser brand Advantage Rent A Car.

Coincidently Avis Budget agreed a deal to buy out Avis Europe for £635 million practically taking them out of the running to purchase Dollar Thrifty.

Now from where I stand this leaves us with the following senario…

  • Dollar Thrifty want to sell too Hertz but don’t need to.
  • FTC want Hertz to sell Advantage.
  • Hertz wont sell Advantage unless they know they will get Dollar Thrifty.

So we have a bit of a stand off at present… Rumour has it, and its only rumour, is that Fox Rent A  Car could be the company to purchase Advantage Rent A Car, I have no insider knowledge on this, I just saw it on a predominant car rental blog and other sites.

For me, I think Hertz will complete a deal to purchase Dollar Thrifty but I wouldn’t expect a quick sale. Advantage will have to be sold on to make this deal happen and to be fair there aren’t many companies who would have the cash or the know how, so Fox Rent A Car is as good a guess as any.

What’s your take on the this?

regards,

James

 car hire USA

Hertz Make New Bid For Dollar Thrifty

Hi all,

The soap opera that has become the race to purchase Dollar/Thrifty took another turn yesterday when Hertz re-entered the race with an equity bid of $2.2 Billion. The offer is based on Hertz’s May 6th stock price of around $72 total per share.

Hertz’s ambitious plans for discount brand, Advantage Rent A Car could be shelved to help gain approval from the FTC which appears to have been a stumbling block for the Avis/Budget offer.

A Hertz spokesman stated that the next steps would be

we will complete the divestiture of Advantage and work toward FTC approval. We will enter into discussions with Dollar Thrifty to reach a consensual deal and look to secure support of Dollar Thrifty shareholders.

Hertz new offer eclipse’s its previous offer by 26% and Budgets by 24%, Hertz stated that improved conditions within the market place, driven by a buoyant second hand market has resulted in the improved offer.

It will be very interesting to see where this saga goes and the FTC ruling regarding Avis/Budgets proposed purchase of Dollar/Thrifty will have a massive bearing, the outcome of this is already a month overdue.

Who will benefit more from the purchase, Hertz, Avis/Budget or the consumer?

regards,

James

 car hire USA

USA Car Hire Revenue Increase For Alamo, Budget, Dollar and Hertz

Hi all,

Today I have been sent the annual survey of USA car rental fleets, locations and revenue  provided by Auto Rental News.

The U.S. Car Hire industry is set to report a combined industry revenue of over 20 billion dollars up on 2009 figures.

The impressive point to this stat is that this year’s revenue total will be achieved with a smaller rental fleet, bringing average revenue per unit to $1,051 per month, a record high.

Alamo Car Hire

Alamo Rent A Car including Enterprise Rent A Car and National Rent A Car have an estimated 850,689 rental cars in service in the USA today covering 6178 locations. Last year’s total revenue was estimated at $9.5 Billion, this years revenue see’s an estimated increase to $9.8 Billion.

Budget Car Hire

Budget Rent A Car including Avis have an estimated 270,000 rental cars in the USA servicing 2100 locations. Last year’s total revenue was estimated at $4 Billion, this years revenue see’s an estimated decrease to $3.85 Billion.

Dollar Rent A Car

Dollar Rent A Car including Thrifty Rent A Car have an estimated 108,000 USA Hire Cars on the road spread out among 464 locations. Last year’s total revenue was estimated at $1.467 Billion, this years revenue see’s an estimated increase to $1.54 Billion.

Hertz Car Hire

Hertz Rent A Car including Advantage Rent A Car have an estimated 290,000 rental cars in the USA servicing 2300 locations. Last year’s total revenue was estimated at $3.95 Billion, this years revenue see’s an estimated decrease to $4.158 Billion.

Totals

Based on all the estimates there are 1,629,561 Rental Cars servicing 17,254 separate USA pick up points earning an estimated $20.551 Billion for 2010!

I am n0t entirely sure if these figures include the buoyant second hand car sales market, but the figures are an encouraging sign that the car rental industry is back on a secure foundation after what has been an extremely difficult few years.

Regards,

James,

 car hire USA

Avis Budget’s Response To Hertz’s Comments Over Dollar Thrifty


Hi all,

Interesting statement from Avis Budget today -

Hertz has today stated that if the Dollar Thrifty stockholders reject the Hertz merger, Hertz will end all efforts to acquire Dollar Thrifty.  Based on this commitment, Avis Budget is now prepared to agree to pay a reverse termination fee of $20 million in a merger agreement with Dollar Thrifty.  Avis Budget has always said that as long as Hertz had matching rights, Avis Budget would not consider a reverse termination fee.  Now that Hertz has in effect eliminated those matching rights, Avis Budget is prepared to offer such fee.
 
If Dollar Thrifty stockholders do not approve the Hertz transaction at the special meeting tomorrow:
 
1. Avis Budget will continue to actively pursue the acquisition of Dollar Thrifty, including commencing an exchange offer at our recent offer price no later than 10 business days after the meeting.  Such offer will be subject only to the conditions in the merger agreement previously provided (as adjusted for an exchange offer structure with a minimum tender condition, for modification of credit agreements, and to assure that Hertz honors the commitments made in its statement earlier today) and the Dollar Thrifty disclosure schedules previously delivered to us.
2. Avis Budget will continue to actively pursue antitrust clearance.  As previously disclosed, Avis Budget has committed to sell assets representing $325 million of revenues (of which not more than $250 million are U.S.), demonstrating our commitment to attaining antitrust approval.
3. Avis Budget will commit to sign the merger agreement previously provided, with an additional provision to assure that Hertz honors the commitments made in its statement.
4. In light of continuing questions related to reverse termination fees, Avis Budget will agree to pay a $20 million reverse termination fee in the merger agreement with Dollar Thrifty.

Who will win the battle…

regards,

James

 car hire USA

Will We All Be Hiring Electric Cars In The USA?

Hi all,

Here at usrentacar.co.uk we try to remain as green as possible, so when Inissan leaf read that Enterprise Car Rental ( Alamo car hire’s Parent Company)  and Hertz believe that they could be offering electric cars from as early as January 2011  I had to look a deeper in to it.

Enterprise Rent-A-Car,  made public their plans  to offer around 500 Nissan Leaf all-electric cars last week, initially at dealerships in Los Angeles, San Diego, Portland and Seattle.

Hertz announced a few months ago that it  to would be offering the Nissan Leafs next year at a handful of locations in the U.S.  including New York, Washington and San Francisco.

About the Leaf

The Nissan Leaf is a 5 dr hatchback compact car. A fully charged Leaf has a range of about 100 miles however it takes up to eight hours at a charging station or 20 hours from a standard home outlet to reach maximum.

Problems

Will Enterprise and Hertz price normal customers out of having an electric car?

At present if you return a normal car without petrol you’d be charged a fee, what would happen if you return the electric car empty?

Would you hire an electric car?

How much would you be willing to pay ,fully insured for a week?

Kind regards,

James

 car hire USA

Budget Car Hire Increases Dollar Car Rental Bid

The battle for ownership of Dollar Rent A Car took another turn last night ascarental Avis Budget returned with an improved offer. Back in August I blogged about how Dollar had declined Budgets initial advances and how Hertz looked favourite to purchase Dollar.

However Budget has returned with an improved offer of around $1.36 Billion for the Tulsa based car rental giant. The cash portion of the Avis offer for Dollar Thrifty has been raised from $39.25 to $40.75 per share.

“We are confident that the Dollar Thrifty shareholders will prefer the premium Avis Budget offer to the Hertz offer,” Avis Budget stated.

The improved offer may still be shunned due to the opposition the deal might encounter via antitrust regulations.

Dollar Thrifty shareholders are due to attend a special meeting on September 16 to consider the Hertz offer.

“In the event that the Hertz transaction is rejected by the special meeting, we will commit to sign the merger agreement we previously delivered to Dollar Thrifty at any time within five days of that meeting,” Avis Budget said.

It’s clear that whoever completes the deal will have increased their market share and obtained the only USA Car Rental supplier to make a profit in 2009.

Will keep you all posted.

Regards,

James

 car hire USA


Bad Behavior has blocked 1315 access attempts in the last 7 days.