Hertz, Dav El Initiate Marketing, Distribution Pact - Business Travel News

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Hertz, Dav El Initiate Marketing, Distribution Pact

January 13, 2010 - 12:00 AM ET

By Seth Harris

Hertz and Dav El Chauffeured Transportation today launched a multiyear marketing, sales and distribution partnership primarily designed to cross-promote each company's services to corporate travelers through Hertz.com and their reservation centers.

During the past several weeks, the companies have beta-tested some transactions by directing referral reservations through their respective call centers and on their online booking products. The agreement is not reflected in third-party online booking systems.

Hertz senior vice president of global sales Bob Stuart said the partnership is not designed for any particular set of clients, but added that some global and strategic corporate account segment clients expressed interest in securing a global chauffeured transportation provider through Hertz.

"This is a solution that just isn't being provided to global and strategic customers," Stuart told BTN. "Most, if not all, of our customers use chauffeured drive at some point throughout the year. I am not limiting this to that particular organization. It is something that will be spread out to my regions across North America and Europe and Asia."

The agreement has been in development for more than 18 months, elongated by delays related to the economy, according to Dav El president and CEO Scott Solombrino. "The only reason why it took a little bit longer than I or Hertz might have liked was that there were outside circumstances far beyond our control that were much more relevant to pay attention to at the time than this particular transaction," said Solombrino.

Hertz is not the first major rental car company to offer chauffeured transportation services through a partner. In October 2007, Avis Budget Group purchased a 45 percent stake in Carey International for $60 million (BTNonline, Nov. 19, 2007). Avis Budget the following year declined to increase its equity in Carey to 80 percent citing the challenging economy, which hit chauffeured transportation providers especially hard (BTNonline, Nov. 7, 2008).
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