Business Travel News - February 9, 2009 - (Page 18)

GROUND TRANSPORTATION Hertz Lays Off Thousands, Defleets As Air Cuts, Economy Hit Demand BY JAY BOEHMER UNDER THE HOOD AMADEUS ELIMINATES PAPER CAR RENTAL RESERVATIONS Amadeus last month said it has eliminated all paperwork for car rental reservations globally through its Amadeus Cars E-Voucher program. The electronic reservation system facilitates payment and billing between car rental providers and travel agencies and negates the need for travelers to have paper reservations. Much like airline e-ticket systems, travelers need only present a confirmation number at the rental counter to verify their reservation. Amadeus Cars E-Voucher is available worldwide and usage is based on car rental company agreements with travel agencies. According to an Amadeus spokesperson, all major car rental companies are using the E-Voucher system, yet some do not activate it in all markets in which they operate. Amadeus said it is the most common payment form for corporate travelers in Europe, the Middle East and Africa. Such E-Voucher car rental reservations also can be processed through the Amadeus E-Travel Management online booking tool. Other GDS providers have similar programs, but Amadeus claims it was the first global distribution system to launch the electronic reservation offering globally in 2006. ence in Detroit, said Hertz is “reliHertz Global Holdings, beginning giously right-sizing the business to in the fourth quarter of 2008 and meet the demand.” through the first quarter of 2009, is Though she noted that demand is eliminating more than 4,000 jobs down amid a slowing economy and across its business units. The cuts reduced airline capacity, the induscompound a 9 percent reduction in try—bolstered by industry consolidaheadcount last year tion, improved fleet through the third strategy and better quarter, which repmanagement—is resented 2,700 jobs. “better positioned When compared than in earlier downwith August 2006, turns,” Douglas said. the total cuts will reDouglas detailed duce headcount by some of Hertz’s ac32 percent. tions to “right-size” Hertz has not yet business, but gave detailed specific little guidance into performance for its fourth-quarter permost recent quarter, formance, results for ending Dec. 31, but which the company HERTZ CFO ELYSE DOUGLAS chairman and CEO officially will anMoving to meet the demand Mark Frissora said nounce this month. in a statement last Still, she pointed to month, “Volume, pricing and resid- “accelerated fleet reductions,” notual values continued to decline dur- ing the fleet was 4.5 percent smalling the most recently completed er by the end of third-quarter 2008 quarter, and we cannot predict when than in the same period in 2007. our markets will improve. As a re- Douglas said the pace of Hertz’s desult, we continue to take aggressive fleeting was “a bit ahead of where action to align our costs, including our competitors were at in the third wage and benefit expenses, with quarter,” adding that Hertz also business conditions.” closed 80 rental locations, “based Hertz CFO Elyse Douglas, during on underperformance as the result a presentation last month at the of reduced demand.” Auto Analysts of New York Confer■ jboehmer@btnonline.com ■ HERTZ ADDS CAR-SHARING PROGRAM Hertz Corp. has launched a car-sharing program with plans of coverage in as many as 20 cities in the next two years and expects the business model—a pay-as-you-go system for car usage, similar to the established model of such suppliers as Zipcar—to become more prevalent in the United States, including among corporate travelers. Hertz initially is launching the program, Connect by Hertz, in New York, London and Paris, with further expansion planned in several European and North American cities in 2009. The car-sharing market currently has about 280,000 members in the United States and about 600,000 worldwide, Hertz chairman and CEO Mark Frissora said. “We think it’s going to be a rapidly growing market, and we expect to be the leader in that marketshare,” he said. Consultant Neil Abrams—who last month formed a specialized business unit of his Abrams Consulting Group to advise businesses, institutions and government agencies interested in car sharing—said car sharing’s corporate travel uses are poised for growth, particularly as companies look to cut both costs and environmental impact. “Car sharing’s time has come,” Abrams said. “It is a significant alternative, and the model can be very cost-effective for customers who need a vehicle just for two to three hours.” LOWEST AND HIGHEST ON-AIRPORT TAX RATES FOR DAILY CAR RENTALS, 2008* LOWEST Location St. Louis Detroit Honolulu Fort Lauderdale, Fla. Fort Myers, Fla. NATIONAL ADDS NINE CITIES TO TOLL PASS PROGRAM National Car Rental in December announced an expansion of its electronic toll payment system program into nine additional cities. Having recently introduced its Toll Pass program in Newark, N.J., National is making the program available in Baltimore; Boston; Chicago; Houston; Philadelphia; Pittsburgh; Rochester, N.Y.; Syracuse, N.Y., and New York City, including locations at LaGuardia and John F. Kennedy International airports and six rental offices in Manhattan. Additionally, there are plans for expansion into Dallas and states including Delaware, Florida, Maine, Massachusetts, New Hampshire and Virginia. Alamo Rent A Car customers also can use National’s toll technology for a daily fee and the cost of tolls. Tolls are charged separately after the completion of the rental. HIGHEST Total tax1 7.83% 8.00% 8.08% 9.17% 9.17% Location Cleveland Dallas Phoenix Chicago Charlotte Total Tax1 27.08% 24.77% 24.42% 23.59% 21.17% * Of the 50 U.S. cities with the highest numbers of air passengers 1 Combining state, county, city and taxing districts with any daily flat tax Source: National Business Travel Association —Michael B. Baker & Seth Harris 18 Monday, February 9, 2009 www.BTNonline.com Business Travel News http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - February 9, 2009

Business Travel News - February 9, 2009
Contents
Inside Track
Profiles In Travel Mgmt
Forum
Aviation
Lodging
Car & Ground Transportation
Travel Management
Destinations
Washington Wire

Business Travel News - February 9, 2009