HERTZ GLOBAL HOLDINGS, INC (HTZ)

Hertz Global Holdings, Inc. is the Delaware holding company for The Hertz Corporation, a vehicle rental and leasing business whose predecessors date back to 1918. The company rents vehicles primarily under the Hertz, Dollar and Thrifty brands, and as of December 31, 2023 operated from approximately 11,400 company-operated and franchisee locations in about 160 countries and jurisdictions, including the U.S., Europe, Africa, Asia, Australia, Canada, the Caribbean, Latin America, the Middle East and New Zealand. It reports two segments: Americas RAC (the U.S., Canada, Latin America and the Caribbean) and International RAC (all other locations, mostly in Europe), each covering vehicle rentals, vehicle sales and value-added services through company-operated, franchised and partner locations.

The brands are positioned at different price points: Hertz is the premium brand, Dollar is a value brand focused on family, leisure and small business travelers, and Thrifty is a deep-value brand focused on leisure travelers. All three share a single fleet and fleet management team. Rentals are made at both airport locations (about 1,900 in the Americas and 1,500 internationally, operated under airport concessions) and off airport locations (about 3,300 in the Americas and 4,700 internationally), with off airport revenue representing 34% of worldwide vehicle rental revenue in 2023.

Customers include business and leisure travelers, government and corporate accounts, tour operators, insurance replacement renters, and drivers for ride share partners. The company sells to them through a sales force, websites, mobile apps, travel agents, global distribution systems and reservation centers. Offerings include the Hertz Gold Plus Rewards loyalty program (about 33% of 2023 rental transactions), Hertz Ultimate Choice, electronic rental agreements, e-Return, PlatePass tolling and electric vehicles.

Ancillary revenues come from reimbursed fees and from products such as loss damage waivers, insurance coverage, roadside service and supplemental equipment. Franchisees operate under the brands and pay initial fees and royalties, accounting for about 2% of worldwide vehicle rental revenue. The business is seasonal, peaking in the second and third quarters, and in 2023 the peak fleet was about 467,000 vehicles in the Americas and 124,600 internationally.

Vehicles are financed through borrowing programs and operating cash flow, bought as program vehicles (repurchase or guaranteed depreciation arrangements with manufacturers) or non-program vehicles, and later sold, including directly to consumers. The company strategy emphasizes rental execution, ride share, electrification, technology and a digital-first customer experience.