Hertz Global Holdings reported that global car rental
revenue declined 6 percent year over year in the first quarter to $1.8 billion,
as pricing in the United States dropped 10 percent.
President and CEO John Tague attributed the decline to softening
business travel demand, declines in the insurance-replacement business due to
fewer winter storms, and bigger fleets across the industry. Avis Budget Group
cited similar
concerns. Hertz's global car rental fleet dropped 4 percent year over year,
but industrywide fleet levels continued to push pricing down, he said.
Like Avis Budget, Tague said pricing seemed to improve in
more recent months. "A lot of things gathered together that created a much
more severe reckoning that might have been predictable by any of us, and that
is causing us to gain better understanding of what we need to do to get this
industry back on path," he said. "There's reason to be encouraged
that this is temporary, though that's not to suggest we're going to be giddy in
three months."
Hertz's U.S. car rental revenue declined 8 percent year over
year to $1.4 billion during the quarter, and transaction days increased 2
percent. Outside the United States, pricing rose 2 percent in constant
currency, though currency exchange challenges pushed revenue down 1 percent to
$433 million. Transaction days outside the United States rose 3 percent year
over year.
Hertz reported a net loss of $51 million for the
quarter, compared with a $70 million net loss a year prior.