Hertz Revenue Declines 2%
In the second quarter 2016, Hertz Global Holdings Inc. has reported its total revenues as $2.3 billion, a 2% decline versus the second quarter of 2015. Hertz had a net loss of $28 million compared to $13 million during the same time last year.

Photo courtesy of The Hertz Corp.

Photo courtesy of The Hertz Corp.
For the second quarter 2016, Hertz Global Holdings Inc. has reported its total revenues as $2.3 billion, a 2% decline versus the second quarter of 2015, according to Hertz. Adjusted earnings for Q2 were $184 million versus $246 million in the same period last year, a decline of $62 million.
Hertz has reported a net loss of $28 million compared to a net loss of $13 million in the second quarter of 2015. On an adjusted basis for Q2, Hertz reported a net income of $35 million compared to a net income of $74 million in Q2 2015.
For the U.S., Hertz’s total RAC revenues were $1.6 billion in Q2, a decrease of 2% compared to last year. According to Hertz, transaction days increased by 6% while pricing (total revenue per transaction day) decreased by 8%. Adjusted earnings for Q2 were $168 million, a $56 million decline from last year.
"In the U.S., pricing improved significantly throughout the quarter, and we see positive pricing momentum continuing into the third quarter," said John Tague, CEO and president of Hertz Global Holdings.
Unit revenues for U.S. RAC — as defined by revenue per available car day (RACD) — improved by 10 basis points year-over-year, according to Hertz. This was driven primarily by the 700 basis point improvement in vehicle utilization from Q2 2015.
In Q2, Hertz’s total international RAC revenues were $540 million, a decrease of 3% from second quarter 2015, according to the company. Excluding a $6 million unfavorable foreign currency impact, revenues decreased 2% — driven by a 2% drop in total revenue per day on a constant currency basis.
Worldwide customer satisfaction, as measured by Net Promoter Score, improved for the Hertz, Dollar, and Thrifty brands by more than four points for the second quarter.
In the second quarter, Hertz achieved cost savings of approximately $100 million and is on pace to hit its previously announced target of $350 million of full-year 2016 cost savings, according to the company.
Other business highlights from Q2 include investing in Luxe, an app-based valet parking company, launching one-year vehicle rental supply agreements with Uber and Lyft, and transitioning its U.S. Firefly operations to its Thrifty brand.
"Significant work was accomplished this quarter as part of our three-to-five year margin improvement plan," said Tague. "While still in the first year of the plan, we completed a number of strategic actions, improved our balance sheet, and made progress on technology development, all while reducing our cost base and achieving substantial improvements in customer satisfaction. These accomplishments are the result of the dedication and commitment of our employees all across our operation.”
More Rental Operations

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
