Articles tagged “hertz”

Car rental brands are losing customers to ascendant ridesharing services. As they become more nimble and technology-focused, however, car rental companies should be able to regain some share in the ground transportation marketplace.

Car rental companies have bounced back in the last year by becoming smarter about how they reach customers and invest in technology.

Hertz knows it needs to get more involved in ride-sharing to keep itself relevant but isn't yet sure what that solution is. It doesn't see its current Lyft partnership as strategic, but it was still willing to test the ride-sharing waters.

The substitution effect is real, and car rental companies for the first time are beginning to look like transitory businesses.

Hertz's investment in on-demand valet-parking service Luxe should be seen in the context of Accorhotels recently acquiring Onefinestay. Car rental companies and hotels are both feeling pressure from the sharing economy and they will be making more such investments and acquisitions as these startup mature.

Weakening business travel demand, and the impact of ridesharing on the leisure market, is leading to lower rates and decreased revenue for car rental companies.

Rental car companies saw improvements in revenue and fleet sizes during 2015 and probably feel optimistic about the U.S. economy's continued recovery and increased American travel projected for this year. But they should hold off on celebrating until they demonstrate how they'll make renting cars easier and more mobile friendly in a world where Uber is a frequent alternative to rentals.

Hertz is innovating standard GPS technology to give travelers the experience they're looking for on a long car ride. The app provides an experience that breathes life into GPS coordinates that will benefit destinations and hotels, as well.

Corporate responsibility is mostly a lot of hype, but these sustainable initiatives from Hertz make good business sense. For most of them, like this waterless car wash initiative, Hertz reduces its costs, helps the environment, and could engender goodwill from customers and potential customers.