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.



 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?



 car hire USA

Dollar Thrifty Sets Deadline For Purchase Offers

Hi all,

Following on from Scott Thompson’s letter to Budget and Thrifty sent late August, Dollar Thrifty this week sent out letters detailing the deadline they expect all formal offers to be submitted by.

The letter states

Final offers for Dollar Thrifty are due no later than 5 p.m. EST Oct. 10
Mark Pinsky, Dollar Thrifty consultant goes on to state
The board of directors of the company will meet to review your offer, Based upon your offer, the board will decide whether to have further discussions between you and the company regarding a potential transaction.
“The company reserves the right in its sole discretion to evaluate the terms and conditions of your offer, to enter into or terminate any negotiations or agreements with any potential purchaser or purchasers at any time and to reject any or all offers from potential purchasers for any reason whatsoever.”
An interesting part of the letter asks potential buyers to list the following within their proposal
  • Purchase Price
  • Mix between cash and shares.
  • How they plan to finance the deal.
  • Regulator terms that would be required to complete the deal.
  • How Dollar Thrifty will be merged in to the suitors company.
  • The composition of the combined company’s board of directors post-transaction.
  • How they will maintain a presence in Tulsa.
  • How they will retain Dollar staff.

Retention of staff clearly favours Budget Rent A Car who already have a large presence in Tulsa however the regulator terms possibly suit Hertz who have already stated they would look to sell Advantage Rent A Car to complete the deal.

Hopefully all looks positive that we will finally get some closure this year.

Kind regards,


 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


Mr. Mark P. Frissora

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

Inc. 225 Brae Boulevard Park Ridge,

New Jersey


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,


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,


 car hire USA

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