EXECUTIVE SUMMARY OF HERTZ RENTAL CAR
Hertz Rental Car is a company that is looking to innovate and improve professionalism in the care
hire industry by utilizing cutting-edge technology as well as other creative methods to ensure that
consumers get the best value for their rental car dollar. In New York City, NY, the company is
incorporated as an L.L.C. There is also a dedicated Hertz website for online reservations and
customer support. Customers will be able to enjoy a very unique car rental experience from this
company, which is currently in the early stages of development. In order to meet every customer's
unique transportation needs, there is a wide variety of car models available. As a result, the
corporation plans to take advantage of New York's huge and populous state, which is a major tourist
destination and one of the most populous in the country.
The company can and will produce sufficient sales and accomplish its financial goals thanks to this
market base. In addition, once the company has established itself and has a significant market share
with a favorable income trajectory, it will create and participate in community initiatives and other
welfare charities to give back to society (Schuster, 2017).
Industry Overview
Following years of recession, the Hertz rental vehicle market has expanded more robustly in recent
years. This was mostly due to a decline in airline customers, which has since increased in comparison
to previous years, tying air travel and automobile rentals together. The car rental industry is expected
to grow significantly as a result of an increase in the number of passengers traveling by air as a result
of a rise in per capita income and corporate profits. The industry's major automobile rental companies
have a competitive advantage over smaller competitors, owing to strategic agreements with airlines
and hotels that smaller car rental companies lack. Customers can either rent or lease passenger cars
from players in this business. Short-term car rentals from Hertz often last 30 days or less, but long-
term car leasing contracts typically last 12 months or more. The largest names in this industry have
built strong brands and are therefore well-known. This aids in client retention for established
enterprises while also making it tough for new automobile rental start-ups to attract and keep
customers.
Furthermore, major organizations must continually purchase fleets to meet client demand, something
smaller enterprises cannot do, and regardless of the number of cars in one's fleet, maintenance,
storage, and finally staffing the rental facility are all required. The Hertz Rental Car Industry is a big
and booming industry in developed countries and most parts of the world. According to statistics,
there are around 2,716 licensed and registered automotive rental companies in the United States,
employing approximately 113,499 people. The business generates an annual income of $38 billion,
with a predicted annual growth rate of 3.0% (Jones & Allen, 2018). Hertz Global Holdings Inc. is one
of the most well-known automobile rental companies, alongside Avis Budget Group Inc. and
Enterprise Rent-A-Vehicle Company.
References
Jones, T. L., & Allen, M. T. (2018). A look at corporate control: the case of Hertz Global Holdings. Managerial
Finance.
Schuster, S. (2017). Making the rational for a simplification process for the car rental industry: A strategic
analysis for the Case of Hertz in the United States of America.
