Hertz US Car Hire Sustained by Holidays
Car hire company Hertz announced in an analysts’ conference call that bookings for the fourth quarter in America were ahead of expectations with a growing holiday market.
Holidays in America are making up for a shortfall in the business market as customers are booking cheap flights to the US and then renting a car to take them to their holiday destination. With Christmas just seven weeks away, shopping trips to New York are helping the flagging business sector.
Ski holidays to America’s premier resorts are also proving popular against the backdrop of another expensive year skiing in Europe. Car hire to take passengers from the airport to the slopes have ensured Hertz’s Q4 booking figures remain healthy.
Although the outlook for the leisure market looks positive, Hertz need to address their declining business market which has been the crippling factor for the car rental company during the recession. Company CEO Mark Frissora said: “Our biggest challenge in US rental car continues to be in the business travel market, where demand is weak but improving,” according to Reuters.
Still, if the third quarter is anything to go by, Hertz will have had a decent financial year given the circumstances. Q3 profits came well ahead of Wall Street expectations as costs were reduced and the size of the car hire fleet came down to reflect customer demand.
Profits jumped from $17 million in 2008 to $65 million this year for the quarter. Hertz still have to counter declining revenue however, and until the business market begins to recover, they will have to rely on car hire from the holiday crowd.
Car Hire News posted by Benny Henson on 02 November 2009
Stock Tickers: HTZ
Hertz, car hire. car rental, holiday market. holidays to America
http://online.wsj.com/article/BT-CO-20091029-723040.html
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBNG40853420091030
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