Auto Rental News

SEP-OCT 2013

Magazine for the professional car and truck rental industry.

Issue link: https://autorentalnews.epubxp.com/i/159726

Contents of this Issue

Navigation

Page 13 of 39

INDUSTRY NEWS HERTZ GLOBALLY LAUNCHES ITS 24/7 SERVICE Once a member, the Hertz HERTZ CORP. ANNOUNCED THE 24/7 customer experience includes global launch of Hertz 24/7, a clicking on hertz247.com or hertz. new rental service available any com from your mobile device or time, day or night. The expanlaptop and completing the 24/7 sion will allow customers to rent reservation process in a few minvehicles near their home or work utes. Once getting to the car, swipe when needed and for any length the 24/7 key fob against the reader of time — hourly, daily, weekly or on the windshield to unlock the monthly. doors, and then retrieve the keys "Technology-enhanced tethered to the dashboard. vehicles will be available close Hertz 24/7 service is available to where customers live or work, at 1,800 neighborhood and airport making it easier than ever to locations in the U.S., France, reserve and quickly pick up a Germany, the U.K., Spain and rental vehicle at the customer's Hertz promotes its 24/7 service at this year's Global Business Travel Association conAustralia with plans to be in more convenience," said Mark P. Frisvention in San Diego. than 2,000 locations by year end. sora, Hertz chairman and chief The company now has 35,000 vehicles (cars, mini-vans, vans and SUVs) executive offcer. "Urban and suburban customers will be able to rent a equipped for 24/7 rentals. By 2016, Hertz will be prepared to have apmuch wider variety of vehicles at any hour — not just weekdays 9 to 5 proximately 500,000 Hertz 24/7-enabled vehicles in service globally. when a neighborhood rental location is open. ..." ACRA DRAFTS REVISIONS TO NORTH CAROLINA BILL ON IMPOUNDS WORKING WITH NORTH CAROLINA legislators, the American Car Rental Association (ACRA) was able to obtain revisions to a North Carolina bill (H.B. 656) that involves the impounding of a motor vehicle when a driver commits certain crimes. The bill would make vehicles that were used by defendants in certain felony cases subject to forfeiture. According to ACRA, the problem with the original text of the bill was that the defnition of an "innocent" rental company only pertained to vehicles driven by unauthorized drivers. Therefore, if an authorized car rental customer was caught driving with an illegitimate driver's license or committed felony speeding to avoid arrest, the rental company would not beneft from the "innocent owner" exception and the vehicle would be subject to impound. ACRA created a broader definition to better clarify an "innocent owner," according to Sharon Faulkner, executive director of ACRA. Now a rental company will be considered an "innocent owner" if: The offense is performed by an unauthorized driver; the authorized driver performed an impaired driving crime, but the rental company had no knowl- AVIS BUDGET GROUP PROFITS DIP IN Q2 2013 A vis Budget Group Inc. reported second quarter 2013 worldwide revenues of $2 billion, a 7% increase compared with second quarter 2012. This is mainly due to the acquisition of Zipcar and a 3% growth in rental days. Excluding certain items, corporate EBITDA declined 33% to $179 million, primarily due to higher U.S. feet costs, according to Avis. The company reported a net income of $58 million and a GAAP net loss of $28 million — due to debt-extinguishment expenses, transaction-related charges and restructuring costs. "Our second quarter results reflected volume growth in all regions and increased pricing in North America, offset by the significant yearover-year increase in North American fleet costs occasioned by the significant car-sale gains 12 September/October 2013 and depreciation adjustments recorded in the comparable quarter of last year," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Going forward, we expect volume and pricing trends in North America to remain favorable and fleet costs to stabilize. In addition, summer trends in Europe are also favorable, while the integration of Zipcar continues to progress as planned, with both cost savings and incremental revenue opportunities being realized." In 2013, the company expects to generate worldwide revenues of approximately $7.8 billion to $8 billion, a 6% to 9% increase compared to 2012. When it comes to adjusted EBITDA, the company anticipates it to be about $750 million to $800 million, excluding certain items. AUTO R ENTAL N EWS edge of the renter's impaired driver's license when the rental agreement took place; or if the authorized driver committed the crime of speeding to elude arrest, but the rental agreement clearly prohibits use of the vehicle while committing a felony. NEW YORK CDW SUNSET CLAUSE EXTENDED The sunset clause for the amendment that allows New York car rental agencies to sell collision and loss damage waivers (CDW/LDW) to their customers was extended for an additional fve years by the New York State Senate. After passing the New York State Assembly, the bill passed in the Senate by a vote of 62 to 0. Governor Andrew Cuomo signed the bill into law on Sunday June 30. In 1989, New York legislators took away car rental companies' right to sell CDW and LDW, limiting the RACs to customer liability, which only required the renter to pay $100, despite how the accident occurred. The passage of the bill had a hand in forcing more than 300 car rental companies to close. In 2002, the law was amended to allow car rental companies to sell CDW/LDW again. The amendment was extended in 2008, and again last month to 2018. The American Car Rental Association (ACRA) lobbied to ensure passage of the extension. "I am grateful to the efforts of ACRA, otherwise we would be back in the dark ages when LDW was banned in New York State," said Gil Cygler, president and CEO of AllCar Rent-A-Car, which serves New York City. "It's a relief to know I have an organization that is working to protect my business. Without the extension of the law, it is doubtful we could offer the same service to the public."

Articles in this issue

Links on this page

Archives of this issue

view archives of Auto Rental News - SEP-OCT 2013