Hertz - May 2009 - Commonwealth Business Travel

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Hertz Key Corporate strategies
The “New” Hertz
Experience
May 8, 2009
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The “Old” Hertz Sales Force
The “New” Hertz Sales Force
Implications for CBTG
Hertz Updates
How Hertz Compares
Hertz Drives Savings
The OLD Hertz Sales Force
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The Old Hertz – Travel Industry, Commercial, Off-Airport
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What Worked?
 Segment Experts
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Challenges
 Internal conflicts
 Availability/Coverage
 Who to call for what?
 Sales & Operational Relationships
The NEW Hertz Sales Force
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The New Hertz – Global Sales Force
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6 Sales Regions (aligned with 6 operational regions) run by VPs of Sales
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NE & Canada
Central
Mid-Atlantic
Southwest
Southeast
Western
Regional Sales Managers with teams of sales reps geographically assigned
 Reps sell ALL Hertz products (T.I., Corp., Ins Replacement, HLE)
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National Account Managers – Large ($750K+) Hertz Accounts (T.I. & Corp.)
Implications for CBTG
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Short term –
Meeting the new people
Teaching the new people
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Long term –
Single point of contact
Opportunity for better Hertz access
Development of business partner experts (leisure, BAP, corp)
Changing More Than People
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Car Sharing – Connect by Hertz
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Advantage Acquisition
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On-line trip planning
Connect by Hertz car sharing is an environmentally friendly economical alternative to owning a
car. It’s a “pay-as-you go” car membership club, and it couldn’t be simpler. You get all the perks
of having a car, without having to own one, and gas is included. Connect by Hertz makes escaping
the hectic pace of the city life easy and convenient.
Join: Apply online at www.connectbyhertz.com .
Once you're approved, you get your very own Connect card.
Book: Go online and reserve one of our vehicles for a couple of hours up to a few days with rates
as low as $8.50.
Unlock: Pick up your car in either NYC, London, France, then just swipe your Connect card on the
windshield. The doors will unlock, and your ready to go!
Drive: Enjoy the ride. Don’t forget gas, maintenance, reserved parking, insurance and NeverLost
are included too!
Perfect for….Savvy Business owners.
Connect provides your business with 24/7 self-service access to a diverse fleet of cars. Whether
you need cars by the hour or day.
Fleet
•All vehicles are Smartway Certified
•4 Star Safety Rating or better
•JD market appeal rating of 855 or higher
•Highway MPG of 24 or better
ALL VEHICLES ARE EQUIPPED WITH:
• Bluetooth
• IPod connectivity
• NeverLost
• EZ Pass
The following models are available:
Mini Cooper
Toyota Camry
Ford Escape
Mazda 3
Toyota Prius
More models coming soon
Hertz vs Zipcar – More Options for Connect Members
GPS (NeverLost) – turn by turn navigation
EZ Pass – electronic tolls
In-Car Communication – for member contact
GPS – to track and locate vehicles
Remote Unlock – to unlock vehicles from computer
24 hour In House Member Care Center
Gas Card Monitoring and Tracking – tracking usage
Bluetooth
Immobilizer – prevents theft if in-car computer is tampered
with
Customized Business Account Programs
Hertz Purchases Advantage Car Rental
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Hertz acquired the rights to operate at 20 Advantage locations
Advantage leisure markets ranging from 10% in Orlando to 28% in Denver and
34% in Salt Lake City.
Advantage has a presence in all of the top leisure states: Florida, California,
Hawaii, Arizona and Colorado; they are in six of the top ten leisure markets:
Orlando, Denver, Phoenix, Los Angeles, San Diego and Honolulu
Before they began to struggle toward the end of last year, Advantage had over
17% share of all car rental reservations on Expedia, Travelocity, Orbitz, Cheap
Tickets, Priceline retail and Hotwire retail – the largest online, third-party, travel
booking websites.
While we will start out in 20 prime leisure locations, we own the Advantage
brand name and can expand into any market we choose.
Advantage gives us a second brand to offer our corporate accounts.
Hertz NeverLost  Online Trip Planning
The NeverLost Online Trip Planning website allows users to organize their travel plans
before they leave the comforts of their home or office
• Create personalized trips using: Address/Intersection, Yellow Pages or Hertz
Returns
• Create custom address books with name, address and phone numbers
• Select your favorite destinations from a presorted list
• Simply transfer your trips and address book to any USB flash drive, then plug the
drive into the USB port of your NeverLost. You are now ready to route to any of
your stored destinations using all the benefits of NeverLost ®.
Some Things Will Never Change
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Speed
 Fast and efficient reservations, vehicle pick-up, and return
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Service
 A set of enhancements designed to improve the rental experience:
#1 Club, #1 Club Gold, Instant Return, NeverLost, SIRIUS Satellite
Radio, Return Centers, Easy Access Buses
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Selection
 Having more of the right vehicles at rental locations than the
competition; Able to reserve specific brands and makes of vehicles,
rather than just choosing a “size”
 Hertz Prestige Collection
 Hertz Fun Collection
 Hertz Green Collection
Hertz Awards 2008
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Travel & Leisure “World’s Best Car Rental Agency” - 13th Consecutive Year
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Conde Nast Traveler Readers’ Choice Awards “#1 Car Rental Agency” - 16th Consecutive Year
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Travel Weekly’s Reader Choice Award for Best Car Rental Company
Recommend Magazine Readers’ Choice Award “Best Rental Car Company”
Hertz Named “Best Rental Car Company” by Executive Travel Leading Edge
2008 Extra Mile Awards
Luxury Travel Advisor – Awards of Excellence 2008
TravelWeekly Asia Names Hertz “Best Car Rental Company” -2nd consecutive year,
TTG Asia Annual Travel Award “Best Car Rental Company” - 3rdyear in a row
Daily Telegraph 'Best Car rental' award
“Best Car Rental Company” Australian Federation of Travel Agents – 2nd consecutive year
Sweden’s most environmentally friendly car rental company
Hertz Rent A Car nominated to the Gethuman Great Customer Service Club
Business Traveller Awards 2008 “Best Car Rental in North America” – 3rd consecutive year
Frost & Sullivan’s 2008 U.S. Business Travelers’ Choice Award for “Overall Best Car Rental
Company”
“Best Car Rental Company” at the Travel Trade Gazette Awards
The Beat Names Hertz “Most Admired Car Rental Company” at Readers' Choice Award
“Best Car Rental Company” by Dan’s Papers
Corporate Business Flying Safety Award by the NBAA - 11th year in a row
“Best Car Rental Company” in the Brand Keys Customer Loyalty Engagement Index
No. 1 in the Harris Interactive 2008 EquiTrend Brand Equity Study
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How Hertz Compares
Hertz
Avis
National
Extensive Green Collection of 35,000 vehicles
reservable by make and model helping corporations
meet EPA requirements
YES
NO
NO
Hertz # 1 Awards Program encouraging corporate
RAC compliance
YES
NO
NO
Online 10 minute guarantee for non-Gold travelers
YES
NO
NO
Complete network of on and off airport locations
enabling one way rentals to/from airport
YES
Limited
Limited
Hertz Connect offers travelers a cost effective
hourly rental option
YES
NO
NO
Network of off-airport locations provides cost effective
solution for employee mileage reimbursed travel
YES
Limited
Limited
How Hertz Compares
Hertz
Avis
National
Covered Pick-up and return area
for weather protection
YES
Limited
NO
Built-in Navigation systems discouraging
theft and mandatory customer reimbursement
YES
NO
NO
Online Trip Planning saves your travelers valuable time
on the road
YES
NO
NO
Network of 1,500 off airport locations fulfilling car
rental needs
YES
Limited
Limited
Corporately owned international locations (Europe,
Australia, New Zealand, Brazil, Canada) providing
seamless operations, quality assurance, and reporting
YES
NO
NO
How Hertz Compares
Integrated customer solutions and benefits for car rental
and heavy equipment rental needs
Largest fleet of any airport car rental company
If you can’t get a car, where is the savings?
Hertz
Avis
National
YES
NO
NO
YES
NO
NO
YES
NO
NO
Brand of choice for corporate travel.
There must be a reason.
Hertz Solutions for Reducing Overall Travel Spend
• Hertz Solutions provide customized programs to better manage overall
travel spend
• By focusing on diversifying ground transportation options, Hertz saves
companies valuable travel dollars
Why Hertz?
Because we provide Solutions.
Speed, Selection and Service...Guaranteed.
More Options to Make Smarter Decisions
Industry research shows that companies spend an average of 5% of their car rental
spend on “Black Car” services
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Reduce a Company’s Black Car costs by using a Hertz One-Way Rental
Example: Car Service vs. Hertz Rental from a Chicago Suburb (< 20 miles) to O’Hare Airport
Base Rate
Taxes at 6%
Gratuity at 20%
Fuel
Total
Car Service
$74.00
$4.44
$14.80
N/A
$93.24
Hertz Rental
$42.00
$2.28
$0.00
$4.00*
$48.28**
$44.96
Cost Savings
using Hertz
* Assumes trip was less than 48 miles ** Tolls and additional surcharges may apply
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Replace hourly Limousine Rates with hourly Car Sharing using
Example: A Full Size Sedan Car Service in Manhattan costs $37.00/hour; many services require a 2 hour
minimum
Switch to “Connect” by Hertz which offers hourly rates as low as $8.50/hour
Savings Options Continued...
 Replace weekend Car Service (Friday Drop Off with a Monday Pick-up) with a
Hertz “Weekend” Rental
Example: Car Service to a Chicago Suburb < 30 miles from Metro Office on Friday evening and back on
Monday Morning
Base Rate
Rental Days
Tax at 6%
Gratuity at 20%
Fuel
Total
Car Service
$84.00 each way
N/A
$5.04 each way
$14.80 each way
N/A
$207.68
Hertz Rental*
$40.00
3
$7.20
N/A
$37.00 avg
$164.20**
$43.48
Cost Savings
using Hertz
The employee has use of the car for the entire weekend
Pick-up the car at a Hertz Local Edition office near you, or in most cases, we offer free pick up and return
 Consider “on-premise” Car Sharing with
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Maintain small on-site fleet of cars for employee business and personal use
* Using Corporate Rates for a Mazda 6 (Midsize) with an 18.5 gallon tank and 24 Average MPG
** Tolls and additional surcharges may apply
Personal Mileage Reimbursement vs. Hertz Rental
 Renting a car may be more cost effective than paying for mileage
 Easy to use Mileage Reimbursement Calculations can determine the most economical option
Personal Mileage Reimbursement = Miles Driven x IRS Reimbursement Rate
Hertz Rental Reimbursement = Rental Cost per Day + Fuel Cost
 Hertz can help determine the “break-even” point for short trips so that you can implement
policies that use the lowest cost option
 You can pick-up the car at a convenient Hertz Local Edition office, or in most cases, we offer free
pick up and return. Plus Hertz provides 24 hour Emergency Roadside Assistance
 Based on your negotiated insurance coverage, liability for the automobile, the driver and damage
to property may be included
Round Trip Mileage
IRS Reimbursement Rate per Mile
Base Rental Rate
Average MPG for Rental Car (Mazda 6)
Average Cost per Gallon for Gasoline
Fuel Cost = (Miles/MPG) x Cost per Gallon
Total Cost
Personal Mileage
200
$0.55
N/A
N/A
N/A
N/A
$110.00
Hertz Rental
200
N/A
$42.00
24
$2.00
$16.67
$58.67
$51.33
Cost Savings
using Hertz
In every business there is one
company that stands out from the
pack, that sets the standard for
everyone else. In car rental that
one company is…
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