Hertz Announces Price Increases in Global Retail Markets
Company Cites Inflation in Key Cost Areas; Pricing Action Affects Retail Rates; Negotiated Contract Rates Unaffected
Oct 28, 2008
PARK RIDGE, NJ -- (MARKET WIRE) -- 10/28/2008 -- Hertz Global Holdings, Inc. (
Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, commenting on the pricing actions, said, "We are committed to our overall strategy which will align rental revenues more closely with our overall costs. We assessed inflationary trends in key areas, including vehicle maintenance and repairs, depreciation and other fleet-related costs, facility expenses and commodity prices. Additionally, we continue our companywide process, which began in early 2007, to restructure and right-size Hertz to further mitigate the effects of inflation and to operate as the lowest cost, highest quality rental provider in the world. We also remain committed to industry-leading, consumer-friendly initiatives such as our 'local pump price' refueling program in the U.S. car rental market," he added.
Hertz leads the car rental industry in customer-focused innovations, and other service-oriented initiatives. In addition to serving all major airports in North America and Europe, Hertz has expanded its footprint off-airport as well, including 75 net new locations added in the U.S. this year. Hertz is the only U.S. car rental company to offer a refueling option with gasoline sold at local "pump prices," including a small service fee. Additionally, Hertz has implemented a 10-minute service guarantee for customers who book online, and has installed 135 rental kiosks at 27 major airports to further speed the rental process. Hertz also offers NeverLost navigation units on over 60,000 vehicles, along with Sirius Satellite radio and Nickelodeon portable DVDs among many conveniences for business and leisure travelers.
The Company noted that, prior to implementing these increases, its pricing in the U.S. car rental market was more than 1.5% lower for the 12-month period ending September 30, 2008, with a similar reduction in pricing for the company's U.S. equipment rental business.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc. (
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