U.S. car rental revenue at Hertz Global Holdings declined 3
percent year over year to $1.7 billion during the second quarter, the company
reported Tuesday.
Both on-airport and off-airport rental volume were down year
over year, the latter due in part to about 200 off-airport stores closing. Fuel-related
ancillary revenue also dipped. Excluding fuel sales, U.S. revenue per rental
day was flat year over year.
Outside of the United States, car rental revenue declined 13
percent to $556 million, owing largely to currency fluctuations. Transaction
days in international locations increased 4 percent year over year.
During an earnings call, CEO John Tague noted that competitive
match for a rate
increase enacted earlier in the quarter was weak but the company is more
focused on increasing revenue per rental day than simply growing the base rate.
“The published pricing is really a small component of what’s
going to drive that outcome and probably the least likely component to yield to
simplistic increases,” Tague said. “Sales effectiveness and value-based selling
to the corporate market, particularly around features and consequences as
opposed to base rate, are other areas of opportunity.”
Hertz also reported aggressive fleet-renewal efforts during
the quarter, adding about 125,000 vehicles and disposing of about 120,000
during the quarter. In a research note, MKM Partners managing director
Christopher Agnew wrote that the company seemed to be “right-sizing fleet to be
in line with demand.”
The company’s net income for the quarter was $23 million,
down from $72 million in the second quarter of 2014.