Friday, October 26, 2012

According to Sen. Barbara Boxer, D-Calif., Hertz -- but not Dollar Thrifty -- agreed earlier this ye




Betsy Snyder, a director at Standard & Poor's, says fewer competitors typically indicate higher pricing, but there "will still be a substantial presence by the value car renters that could keep a lid on pricing."
The number of competing companies shrank when Budget Rent A Car's assets were sold to Avis' parent company in 2002, and Enterprise Rent-A-Car bought Vanguard Car Rental Group, the parent of National Car Rental university plaza hotel and Alamo Rent A Car, in 2007.
According to Sen. Barbara Boxer, D-Calif., Hertz -- but not Dollar Thrifty -- agreed earlier this year to make "a permanent commitment" to not rent or sell any vehicles under safety recall until the defect has been fixed. Boxer has since introduced legislation to force other companies to follow suit.
Hertz controls about 25% of the U.S. airport market, behind Avis Budget Group, which has 26% of the market, and Enterprise Holdings, which has 34%, according to Abrams' 2011 statistics at 50 major airports.
Dollar and Thrifty university plaza hotel control about 12% of the airport market, so the acquisition -- which Hertz pursued for several years -- could vault the company ahead of Enterprise Holdings' Enterprise, National and Alamo brands.
Enterprise Holdings has a larger presence away from airports and would remain the largest auto renter overall. Enterprise has 6,187 U.S. locations -- about 3,700 more than Hertz, trade magazine Auto Rental News estimates.
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