Hertz Global Holdings Business Model Canvas

Hertz Global Holdings deeply relies on strategic alliances within the travel and hospitality sector to fuel customer acquisition and drive demand. These partnerships are not just about visibility; they are critical for embedding Hertz's car rental services directly into the travel planning journey.

Collaborations with major airlines, hotel chains, and online travel agencies (OTAs) are fundamental. By integrating with platforms like Expedia, Booking.com, or directly with airline loyalty programs, Hertz gains access to a vast pool of travelers actively booking their trips. For instance, in 2024, OTAs continued to represent a significant booking channel for car rentals globally, with many travelers preferring to bundle their travel arrangements.

• Airline Partnerships: Hertz often partners with airlines to offer loyalty program members points or discounts, encouraging bookings through these channels.
• Hotel Integrations: Collaborations with hotel groups allow for seamless car rental booking at the time of room reservation, catering to guests needing local transportation.
• OTA Presence: Maintaining strong relationships with OTAs ensures Hertz car rentals are prominently featured and easily accessible to users browsing travel packages.

Hertz Global Holdings relies on financial institutions and lenders for crucial vehicle financing and corporate liquidity. These partnerships are fundamental to maintaining its extensive fleet and operational needs.

Demonstrating the strength of these relationships, Hertz successfully extended the maturity of significant credit facilities in May 2025. This move highlights strong market acceptance and secured competitive pricing for its vehicle debt facilities, a testament to lender confidence.

• Vehicle Financing: Access to capital for acquiring and maintaining its rental fleet.
• Corporate Liquidity: Securing funds for day-to-day operations, working capital, and strategic initiatives.
• Debt Facility Management: Negotiating favorable terms and maturities on existing and new debt instruments.

Hertz's technology infrastructure is a cornerstone of its operations, encompassing robust IT systems for reservations, fleet management, and customer relationship management. These systems are critical for maintaining efficiency and providing a smooth customer experience.

Digital platforms, including the Hertz mobile app and website, are key resources that facilitate seamless customer interactions and streamline the rental process. In 2024, Hertz continued to invest in enhancing these digital touchpoints to meet evolving customer expectations.

• IT Systems: Core platforms for reservations, fleet tracking, and customer data.
• Digital Platforms: Hertz website and mobile app for booking and managing rentals.
• Operational Efficiency: Technology drives efficiency in fleet utilization and customer service.

Hertz Global Holdings relies heavily on the expertise of its entire workforce, from frontline rental agents ensuring customer satisfaction to fleet managers optimizing vehicle utilization and the executive leadership guiding strategic direction. This human capital is fundamental to delivering smooth operations and adapting to market demands.

The company has actively bolstered its management team, appointing new executives to spearhead a critical strategic transformation. This focus is squarely on enhancing fleet management practices, maximizing revenue streams, and driving significant cost efficiencies across the organization. For instance, in 2024, Hertz continued to refine its fleet composition, aiming for greater fuel efficiency and lower maintenance costs, a direct reflection of management's strategic priorities.

• Skilled Rental Agents: Provide direct customer service and manage vehicle check-in/check-out processes.
• Expert Fleet Managers: Oversee vehicle acquisition, maintenance scheduling, and remarketing to optimize fleet health and cost.
• Experienced Executive Leadership: Drive strategic initiatives in areas like fleet modernization, digital transformation, and operational efficiency.
• Focus on Transformation: Recent executive appointments underscore a commitment to improving fleet management, revenue generation, and cost control in 2024.

Hertz cultivates strong ties with its corporate and business clientele through dedicated account management. This involves building direct relationships to understand and cater to the unique mobility requirements of companies. For instance, in 2024, Hertz continued to focus on strengthening these partnerships, recognizing their significant contribution to overall revenue.

These corporate accounts often come with bespoke service packages, including customized pricing structures and preferential access to vehicles. Dedicated account managers act as primary points of contact, ensuring seamless rental experiences and proactive problem-solving for business travelers. This personalized approach is key to retaining high-value clients.

• Tailored Services: Offering specific vehicle classes, delivery/pickup options, and loyalty program integration for business needs.
• Negotiated Rates: Providing volume-based discounts and fixed pricing agreements for consistent corporate travel budgets.
• Dedicated Account Management: Assigning specific Hertz representatives to manage client relationships, bookings, and issue resolution.
• Reporting and Analytics: Supplying businesses with data on rental patterns, costs, and compliance to optimize travel spend.

Hertz actively gathers customer insights through multiple avenues, such as post-rental surveys and online review platforms, to gauge satisfaction and identify areas for improvement. For instance, in 2024, Hertz continued to refine its digital feedback tools to capture a broader range of customer sentiment.

Resolving customer issues promptly and effectively is paramount for Hertz to foster loyalty and protect its brand image. By addressing complaints efficiently, Hertz aims to turn potentially negative experiences into opportunities for demonstrating commitment to service excellence.

• Customer Feedback Channels: Hertz utilizes surveys, online reviews, and direct communication to collect customer feedback.
• Complaint Resolution Focus: The company prioritizes efficient and satisfactory resolution of customer complaints to enhance retention.
• Data-Driven Improvements: Feedback data is analyzed to inform operational adjustments and service enhancements.
• Brand Reputation Management: Effective handling of customer issues directly contributes to maintaining and improving Hertz's brand perception.

Hertz Global Holdings serves a broad spectrum of corporate and commercial clients, from small businesses to large enterprises. These clients depend on Hertz for flexible fleet solutions, including long-term rentals and vehicles for their employees. For instance, in 2024, Hertz continued to focus on securing multi-year agreements with major corporations, a strategy that underpins a significant portion of its revenue.

This segment often involves customized offerings and negotiated contracts. Businesses frequently seek volume discounts and specialized vehicle types to meet specific operational needs. Hertz's ability to provide a diverse fleet, from standard sedans to larger vans and trucks, caters to these varied requirements. The company's commercial rental partnerships are crucial for its overall financial performance.

• Fleet Solutions: Businesses of all sizes utilize Hertz for their fleet needs, ranging from short-term project vehicles to extensive employee car programs.
• Long-Term Rentals: Many corporations opt for Hertz's long-term rental agreements, which offer cost predictability and fleet management convenience.
• Negotiated Contracts: Hertz engages in direct negotiations with corporate clients, often providing tailored pricing, service level agreements, and volume discounts.
• Specialized Vehicles: The company accommodates requests for specialized vehicle types, such as cargo vans, luxury vehicles, or specific utility trucks, to support diverse business operations.

Hertz’s used car buyers represent a significant customer segment, primarily composed of individuals and businesses seeking to acquire pre-owned vehicles directly from Hertz’s extensive rental fleet. This group is drawn to Hertz’s offerings due to a combination of transparent, no-haggle pricing structures and the assurance of purchasing well-maintained vehicles that have undergone regular servicing. The appeal is further amplified by Hertz’s specific programs designed to facilitate this transition, such as the ‘Rent2Buy’ initiative, which allows potential buyers to test drive vehicles before committing to a purchase.

In 2024, the used car market continued to be robust, with Hertz actively participating in remarketing its fleet. For instance, Hertz reported selling approximately 1.8 million vehicles in 2023, a substantial portion of which were purchased by individual consumers and smaller businesses. This volume highlights the scale at which Hertz engages this customer segment. The attractiveness of Hertz-certified used cars stems from their perceived reliability and the convenience of the purchasing process, differentiating them from typical dealership transactions.

• Value Proposition: Access to well-maintained, often late-model vehicles at competitive, no-haggle prices.
• Customer Needs: Desire for reliable transportation, transparent pricing, and a straightforward purchase experience.
• Acquisition Channels: Direct sales through Hertz Car Sales locations and online platforms, often supported by the Rent2Buy program.
• Market Trend Impact: Continued demand for affordable used vehicles in 2024, benefiting Hertz’s fleet remarketing strategy.

Hertz Global Holdings taps into its extensive franchise network for significant revenue. This stream primarily consists of initial franchise fees paid by new operators and ongoing royalty payments. These royalties are typically calculated as a percentage of the monthly gross sales generated by each franchisee, creating a direct link between the franchisee's success and Hertz's income.

For example, in 2023, Hertz continued to leverage its franchise model, which is a key component of its revenue generation strategy. While specific figures for franchise fees and royalties are often embedded within broader financial reporting, the company's global presence, with thousands of locations, underscores the substantial contribution of these revenue streams.

The franchise model allows Hertz to expand its market reach with lower capital investment compared to company-owned locations. This strategy is crucial for maintaining brand visibility and accessibility across diverse geographic areas.

• Franchise Fees: Initial lump-sum payments from new franchisees to secure the rights to operate under the Hertz brand.
• Royalty Payments: Recurring revenue derived from a percentage of each franchisee's monthly gross sales.
• Global Network: The franchise model supports Hertz's expansive global footprint, driving brand recognition and customer access.

Hertz Global Holdings, while primarily known for its car rental services, possesses significant expertise in fleet management. This core competency could be developed into a distinct revenue stream by offering specialized fleet management services to external businesses. Such a move would align with Hertz's ongoing strategic emphasis on optimizing its own vast fleet operations.

While not a primary revenue driver currently, this potential service offering could tap into a growing market. Businesses increasingly seek external partners to manage their vehicle fleets efficiently, covering aspects like acquisition, maintenance, and disposal. Hertz's established infrastructure and experience in managing tens of thousands of vehicles position it well to capitalize on this demand.

Consider the following potential aspects of fleet management services offered by Hertz:

• Vehicle Acquisition and Disposal: Leveraging Hertz's purchasing power and expertise to procure and sell vehicles for clients.
• Maintenance and Repair Coordination: Managing scheduled maintenance and unexpected repairs through Hertz's network of service providers.
• Telematics and Data Analytics: Providing insights into vehicle usage, driver behavior, and operational efficiency through advanced telematics solutions.
• Fleet Optimization Strategies: Consulting on right-sizing fleets, fuel efficiency, and total cost of ownership for client businesses.