Hertz - If you ran Hertz




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safetymom
Jun 11, 09, 7:27 am
Tell us how you would run the company.


jessebritches
Jun 11, 09, 9:01 am
I'd run it well.

Swenny
Jun 11, 09, 10:03 am
Straight into the ground





Oh wait, they're doing that already

*rimshot*


spades097
Jun 11, 09, 10:48 am
Straight into the ground





Oh wait, they're doing that already

*rimshot*


Hertz is actually doing very well compared with it's peers. They don't have the financial issues that Avis/Budget & Dollar/Thrifty have right now.

--


I would stop running HLE the way they do it. HLE needs serious investment or they should just shut it down. They try so desperately to run as efficiently as Enterprise (ERAC) does. Yet ERAC pours tons of money into their off airport operations. They pick excellent locations that have enough visibility to drive business/leisure business on it's own. They also have plenty of locations to make sure that insurance companies stick with them and capture the replacement business that is so crucial to an off airport operation.

I feel that the HLE approach has been to open up stores where ERAC has been successful but pick locations where people don't even drive by to know that they exist (e.g. 90% of customers that get picked up say, "I had no idea you were here"). They don't open up enough locations to offer a reason for most insurance companies to switch to Hertz as primary. They seem happy being secondary with 99% and therefore just getting ERAC's left over rentals or rentals that they simply don't want (Such as the insurance replacement cash qualification customer -- the absolute worst -- sometimes "cash" customer walk out of a store without even putting down $1 and all you have is their license # and an "I owe you" from the insurance company"). They keep trying to approach the market differently than ERAC. Why? Off airport is ERAC's turf...they are very good at what they do. They are so good that they have built up an extensive network and made enough money to buy out National & Alamo making them a serious threat on Hertz's turf...airports.

Furthermore, their "marketing" is pitiful. HLE branches get charged for marketing costs like airport locations yet you so rarely see any advertisement for HLE. They are all targeted for the airport segment. ERAC supports their branch managers' own sales calls with a strong sales team. HLE expects branch managers to land accounts with very little assistance from sales. They expect a branch manager to convince a body shop to start sending ERAC rentals to Hertz because Hertz can offer better service. Yet, they fail to understand that the body shop couldn't care less who the insurance company set the rental up with...it was the insurance company's choice and there is no reason for them to get involved and jeopardize their own relationship. They already got what they wanted...they got the business to repair the car and are most likely on that company's preferred shop list. In addition, manager trainees develop terrible sales strategies because they are given very little training. I bet most MT's by the end of their first month make their first sales call because their manager said, "Take a car and go make some sales calls" with little advice.

Finally - I would decide who I'm actually trying to get. At airports, Hertz wants to be top quality and traditionally are among the highest priced (If not highest). They usually have the best parking spots and counters. At HLE, Hertz picks terrible locations (The worst is when they find land right next to an ERAC store and put a trailer next to it) and then end up in price wars with ERAC that drive rates so low that they cannot afford to have the same standards that customers are used to when renting from airports. ERAC at airports at least keeps pricing somewhat consistent -- they generally go for the low end.

I could go on and on but it won't matter. Bottom line -- I feel that the people at the very top have airport backgrounds and they feel that what works at airports will work off airport. Well, it doesn't.

Auto Enthusiast
Jun 11, 09, 12:04 pm
Interesting point. My nearby Hertz branch is hidden away towards the far corner of a dead strip mall significantly set back from the street. This is a busy 40 mph commercial thoroughfare with three lanes on each side and traffic lights every few blocks. The only clue of their existence is a Hertz sign. No cars are visible from the street. The busy street is divided by a concrete center median, with Hertz on the eastbound side. This necessitates westbound customers going to the next traffic light to make a U-turn before making another quick, sharp right and going up a slight incline. Only after driving to the far end of the shopping mall does one finally see the Hertz sign, and realize that most of the cars in the deserted parking lot are rentals.

Avis so happens to be next door, at the Sears Auto Center, separated from Hertz by an elevated commuter rail bridge, a steep incline, and a small thicket of trees. Avis has a huge red sign near the street, with cars visible in their lot. Their area can be entered from both east and west at the main traffic light for the Sears shopping mall. Avis also manages to sustain a highly visible, second location in another town, right next door to an Enterprise branch.

Budget. both car and truck, lives on the westbound side of the thoroughfare a few blocks further down. Highly visible yet highly cramped. On summer weekends they even park cars on the grassy median under the trees adjacent to the street.

Hertz used to have a second location across the street from a different Enterprise in a nearby poor town. This location closed relatively quickly. People who can barely afford essentials are not going to spend more money for the same subcompact, if they can even afford leisure trips in the first place.

It used to be much worse. In 1998, when I moved from another suburb, Enterprise hadn't yet encroached on the airport turf. In my old county, the airport was nearby. But not so now. Enterprise, Hertz, and Budget were the only local game in town. Budget was way overpriced, despite the name, and was located at the visible Sears Auto Center where Avis is now. Enterprise was everywhere but answered the phone by asking what shop my car was in. When I said I wanted a leisure rental, they said they don't do that. Hertz was located in the back boonies of a major shopping mecca, in a tiny cramped room of a gas station and used car dealership. The rental cars were in the back of the unpaved gravel lot, behind a row of used clunkers for sale. Only the Hertz sign above the door indicated its presence, not even a large sign facing traffic. I drove right by the place the first time I rented at this location. Ironically, such a sign was finally put up shortly before the location was closed.

In 2000, an old service station had a big sign up saying, "Coming Soon- Budget." Sears had a new sign saying, "Coming Soon- Avis," as did a former computer repair store next door to Enterprise. The dead strip mall had a sign that said "Coming Soon- Hertz" as did a former used car lot across from Enterprise in the poor neighborhood. Simultaneously, the Hertz emblem at the used car dealership behind the mall was suddenly scratched out. When I saw the Hertz location in the poor place, I got the sense somebody didn't learn. By contrast, Enterprise was running ads saying they are now at the closest airport, in the next county over. I only later learned this explosion of rental car options wasn't a form of altruism for the people of my county, but as retaliation for Enterprise encroaching on airport turf.

spades097
Jun 11, 09, 12:30 pm
I think Hertz took the first swing. The first HLE opened in the 90's but they didn't really start expanding until after 9/11 when air traffic declined. They originally opened for insurance replacement only. HLE was originally called HIRE (Hertz Insurance Replacement Entity).

Anyway -- right on about your local Hertz being in an abandoned area. They invest the least amount possible to the point where they might as well not even bother. I'm surprised they even have a sign on the street. Does the sign light up at the night? The people I worked with argued with me that having a lit sign isn't worth the cost of running electricity to it. Jeez...just thinking about the stupidity I used to deal with everyday is giving me headaches.

Tuneman1984
Jun 11, 09, 2:32 pm
I think this thread is a great idea as it gives us all a chance to put forward some constructive ideas rather than just complaining all the time (not pointing any fingers, just a generic observation). I don't have a huge amount of experience with Hertz, but I do know about car rental operations in general.

My biggest beef with Hertz from what I've read the last few months is that there's no advantage to going with them anymore. Hertz Gold used to be an innovative program, their cars were top notch, and the service was worth writing home about. Now it seems that all that is gone and yet the price tag for all of this is still there. Therefore, I'd be focused on giving the most loyal customers a reason to stay.

While I couldn't promise an instant return of BMWs and Audis to the fleet, I'd do what I could with vehicle ordering to ensure there are nice cars on the fleet for our best customers. I'd make sure a PC that books a midsize gets their upgrade, and not from a base Corolla to a Mazda3, but to an Impala LTZ or a Taurus with some features on it. If there were certain vehicles my customers didn't like, I'd listen. I'd make notes. I'd do what I could to make the customer happy and give them a reason to stay loyal.

Effective fleet management and utilization is key, because the car is what it's all about. That's why the customer is walking up to the counter and putting their plastic on the desk, they want a car. The nicest cars go to the best customers, no question. I'd make sure the keys were tagged appropriately so that the once-a-year-to-visit-Grandma renter gets the base Cobalt whereas my regular gets the Focus SEL with leather. If everybody gets a base model car with roll-up windows regardless of status, where is the advantage to stay with us if the same car can be had at any other agency in the parkade?

Therefore, our aim should not be the lowest price, but the best value. With Hertz under Tuneman1984, you'd be treated nicer, get a car that's fancier, and be out of the gate quicker than any of the other agencies, and who can put a price on that?

spades097
Jun 11, 09, 3:12 pm
I'm sorry but you can't run a rental car company with Focus SEL's and giving midsize reservations Impala LTZ's or a Taurus. Adding leather to a car costs a fortune. You can give away more at airports because the rates are so much higher but you can't do it consistently and you certainly can't do it off airport. Those cars can nearly double your actual car costs. Here are some general ball park figures so you can see what I'm talking about (Prices are monthly):

Cobalt: $275
Focus: $525 (w/ leather)
Corolla: $350
Taurus: $600
Impala: $450
Impala LTZ: $600


$100-$200 differences add up quickly when you have a fleet of 250k cars. It would be different if renters just wanted an upgrade. However, there so many companies out there that negotiate free waiver & free primary liability as well.

Auto Enthusiast
Jun 11, 09, 4:16 pm
"Does the sign light up at the night?"

I don't think so. I've been there after dark maybe once, that I can recall.

One interesting tidbit: The old Hertz behind the megamall was kind of boring. They had some very nice, popular cars with leather seats. But they always seemed to have NY-plated cars only, not even cars registered in nearby NJ. Now, 1/3 of the cars have NY plates, 2/3 seem to consistently have NJ plates, and the rest are a jumble of the US, typically the Eastern seaboard. It's amusing to see who is visiting the area and how many.

Tuneman1984
Jun 11, 09, 6:53 pm
I'm sorry but you can't run a rental car company with Focus SEL's and giving midsize reservations Impala LTZ's or a Taurus. Adding leather to a car costs a fortune. You can give away more at airports because the rates are so much higher but you can't do it consistently and you certainly can't do it off airport. Those cars can nearly double your actual car costs. Here are some general ball park figures so you can see what I'm talking about (Prices are monthly):

Cobalt: $275
Focus: $525 (w/ leather)
Corolla: $350
Taurus: $600
Impala: $450
Impala LTZ: $600


$100-$200 differences add up quickly when you have a fleet of 250k cars. It would be different if renters just wanted an upgrade. However, there so many companies out there that negotiate free waiver & free primary liability as well.

Fair enough, but I was more positioning myself as running a single location, as I thought the other answers had been positioned. Also, don't forget I'm basing this on Canadian experiences and Canadian car pricing. I know at the retail level a full-load Focus matches a power window/lock Corolla dollar for dollar on payments right now. Also I should clarify that I wasn't advocating treating every customer like the royal family. Say at my location I averaged 8% of my customer base was PCers, then I'd make sure 8% of my fleet was at least cars without tons of mileage and/or nicer models. The rest of the customer base would still get Impala LS's and Cobalts with roll-up windows for their FULLSIZE and compact reservations respectively. As far as the upgrades, I was hinting as respecting the guaranteed upgrade for PC members as has been ignored by some other locations.

Basically what I was getting at was this: Make the most of what you have and keep the highest-value customers happy. Don't just keep your head down and hand car keys out like candy, giving a PC a base Cobalt with 45,000 miles on it and giving away the newer car he/she should've gotten to someone who rents a car less often than they vote.

spades097
Jun 11, 09, 7:54 pm
Well, part of excellent utilization is making sure that you don't have excess cars. The infrequent renter usually does get the worst car. If you see them in nicer cars that is because they usually paid for the upgrade. It is like the airlines...if someone who is flying for the first time in their life wants to pay the first class fare then they are going to get that first class seat.

I never personally saw issues where PC customers were not upgraded. I don't doubt that the problem exists but I don't think it happens as often as some people think. Some people on these boards don't understand what an upgrade is. There are FS customers on these boards that act like they got robbed because they only got an Impala with a midsize reservation. I'm sure there are PC customers out there that would book a compact, be assigned a Corolla and be furious.

ctuttle
Jun 12, 09, 12:26 am
Simple, I would fly to all the airports and experience how the service varies from airport to airport. Pay attention to the little things, as those are the things that will run off your biggest customers. Make sure you make your own reservation, both online and over the phone. Try to use a PC code that gives you bonus points in a travel program, and then check to see if you actually got the bonus.

Oh, and go to the counter so you have to listen to the agent try to upsell and shame and scare you into buying the added insurance. Refuse any option and see how everything slows down. Watch how many keystrokes the counter person must make to handle every transaction. If you are lucky you might get to see how they treat the elderly and young leisure travelers who don't have much experience renting a car. You could learn tips that you could share with used car salesmen and late night workers at hotels.

Make your managers routinely work all the jobs at his or her station, from cleaning the cars to driving the bus to pick up customers whose flights were late.

Look around as you get into your car and see what was missed in the cleaning. My personal favorite was a Pepsi bottle that the previous renter used to take care of the effects of his tobacco chewing. Fortunately it was tightly closed. I've also found hot coffee, from, and I am guessing from the driver who brought the car around.

You might decide also that although leather costs a few dollars more when you buy the car it requires less maintenance and you might get more from it when you sell it. You might also look at all the numbers on the odometer on many of the cars in your fleet, and this is perhaps why you didn't get as much money for the car when you took it out of service.

Figure out how to motivate your workers, from the counter worker, the bus driver, and the people who don't get those nasty pepsi bottles out of your car. Make sure the car is full of gas, and winshield washer fluid, especially in the winter. I still remember the time in Kansas City where I had to stop to buy some, or would never have made it to my destination because of all the road dirt being kicked up by trucks on the highway.

So, just be a customer for a month or so, preferably 30 trips in 30 days so you can live the life of many of your customers and then you will understand why we are all so crabby and difficult to please, and don't understand why are car isn't ready, or why we won't take a van when we rented a full size.

Oh, and make sure you go out on the first flight of the day sometimes, and come in on the last flight so you will understand how important it is to have a well staffed station, and how your business hours need to be fluid, as many flights don't arrive on time, and what time people arrive at the airport for a 5:30 am flight. Perhaps if you miss your flight because there was no bus driver when you returned your car you will understand how some things work on paper but don't in real life.

Hopefully you will never get in an accident in a rental, or get a car with a mechanical problem, but that is a possibility as these things do happen to your customers, and something you should experience.

Also make sure you visit a few franchise locations in your travel, you will find crank windows in some of the full size cars, and models of cars that haven't been made for years in colors you wouldn't believe, with numbers on the odometer that will make your head swim. Downtown hotel locations can also be interesting.

Sometimes everything will go right, you will get a great clean car, a pleasant shuttle driver and a charming counter person. You probably won't be at the most profitable station but you will be at one of the most efficient and busiest. There are a few of these around, I'll let you find them on your own.

I'm sure your business isn't easy to run, but then again mine isn't either, and no I have never worked for a rental car company.

rcspeirs
Jun 12, 09, 8:30 am
Now that digital photography is so cheap, I would invest in cameras for the staff who are checking out / checking in vehicles.
If all damage was photographed, and a copy of the photo was included in the car documentation, it would remove most of those unpleasant arguments about damage on return.
Here in the UK some of the cars are now very high mileage with scratches and scrapes on virtually every panel - so the damage checking process when collecting the car is more time consuming than I would want it to be.

safetymom
Jun 12, 09, 8:39 am
Wow!!! These are some great ideas. Keep them coming.

spades097
Jun 12, 09, 10:15 am
Oh, and go to the counter so you have to listen to the agent try to upsell and shame and scare you into buying the added insurance. Refuse any option and see how everything slows down. Watch how many keystrokes the counter person must make to handle every transaction. If you are lucky you might get to see how they treat the elderly and young leisure travelers who don't have much experience renting a car. You could learn tips that you could share with used car salesmen and late night workers at hotels.

Make your managers routinely work all the jobs at his or her station, from cleaning the cars to driving the bus to pick up customers whose flights were late.

Unfortunately, it is already well known what happens at the counter. Bottom line...if you don't find a way to get the other side to say yes then they will find someone who can.

Managers, for the most part and all at HLE, do everything at their station. Cleaning cars at HLE involves you wearing a tie in the summer and then they wonder why you look awful in front of customers.

--

I'm not sure about UK laws but if you get stuck with damage in the US then make sure you write "I deny" or "The damage was already there" on your vehicle accident report. Whatever you do, do not let them coach you into writing "I was unaware"...the "I deny" or "The damage was already there" will help you.

Auto Enthusiast
Jun 12, 09, 10:33 am
Hertz should also examine their hours at some branches. My HLE is open Saturdays 9-12, and Sundays 12:30-3. So, this makes it impossible to have a roundtrip rental there on the weekends. I really don't want one-way to the airport, especially since this takes tolls, time, and gas. I really really don't want one-way from the airport, since that also involves the airport tax. Avis, Budget, and even Enterprise have more weekend hours, and those hours at least make sense.

spades097
Jun 12, 09, 11:31 am
I don't know if you'll see hours improve until the economy really picks up. Weekend demand was so low to begin with that it only made sense for the busiest HLE's to even be open on a Sunday. With the exception of Manhattan, I think all the other HLE locations would end up having to hire more people (which they don't want to do). The one location around here that is open on Sundays has the person work a 7 day shift to cover it (Another reason for high turnover).

The last few Saturdays that I worked while at Hertz were extremely dead. I think some Saturdays I only did one rental and maybe one return. It didn't matter since I was salaried but most of the time one of my hourly employees was there.

Jon Maiman
Jun 12, 09, 1:48 pm
Have a key drop off box at all HLE locations (and any other Hertz location that isn't 24x7). This lets me drop off a car in the evening so it is back in the pool the next day and I don't get charged for an extra day.

For pickup service at HLE, only say you can do it if you really can.

All locations must have a computer. Writing out rental agreements by hand and calling another location to fax over receipts is too time consuming and error prone.

Last but not least for HLE, make sure you actually have inventory when you rent a car.

True story: A Hertz HLE location I had rented from a few times, was delayed in picking me up. I kept calling them to check in and the manager said they would be out shortly. Eventually he admitted one of the staff members hadn't shown up and they couldn't pick me up. Since I needed to be underway or I would now miss a critical business meeting, I drag my wife and daughter to the HLE location to drop me off. When I get there, they tell me they don’t have a car for me and that they will have to ferry one in from another location. Apparently a dead Toyota Prius they were going to give to me was the last vehicle on the lot. They knew it was dead when I went to check in. So why didn't they tell me that at the same time I was calling in for the pickup? So they find a car at another HLE in my metro area (about 10 miles away). I have my wife drop me off at that location. Needless to say I was livid over this whole experience.

If I wasn't so pressed for time I would have checked with the nearby ERAC or Avis and told Hertz what to do with it. Shortly after the experience that HLE location closed. I had other management issues with that station on my previous rentals (mainly with not pre-printing Gold Agreements even though they did have a computer at that location). With Hertz's business practices at that location I am amazed they lasted as long as they did.

--Jon

P.S. I have had mediocre service from Hertz in general over the past year (especially the last 6 months). As a result I switched back to National for my corporate business and shop on price for personal business. I used to rent almost exclusively from Hertz because their service was superior.

exbayern
Jun 12, 09, 2:58 pm
Make your more valuable customers feel valued, even with the low/no cost things. Yesterday at National I had my name used by staff no less than 3 times, and this was for an Exec rental where I wouldn't normally need to encounter anyone but the agent on departure.

Or be like Hertz at DUS - note my request and tell me that you personally selected my car based on my preference. I don't care if you have 100 of those models, it made me feel special that you took a few seconds to acknowledge my request.

Have the trunk open in an indoor/garage location so that I can put my suitcase in first without having to struggle to get it open. (Always like that in FRA - don't know if that is local but I don't see it in other garage locations)

Direct me to the airport terminal instead of grunting and thrusting a receipt at me. I don't expect all airports to be like MUC where the return guys are contracted for all agencies, but they not only get me a luggage cart, they offer me the morning paper.

Be flexible. The return guy at National offered to comp my fuel charge when I jokingly challenged him to find the gas tank release lever, as I couldn't refuel as I couldn't find it and there was no manual. He comped my 1/4 tank with good humour.

It's not always the big things, sometime the little things make such a difference.

Auto Enthusiast
Jun 12, 09, 3:25 pm
"If you are lucky you might get to see how they treat the elderly and young leisure travelers who don't have much experience renting a car."

Uh-oh. I'm using the underage promotion for the special FL one-way deal pretty soon. I have plenty of experience with cars in general and rental cars in particular. Do you think they'll assume I'm a newbie and treat me like trash? Or try to bully me into buying insurance? I'm bringing a letter from my insurance company just in case.

spades097
Jun 12, 09, 7:21 pm
If you don't want coverage then just say no. If you say no with confidence then they won't waste their time. You can bring a letter from your insurance company to show cops if you get pulled over but don't show it to the counter - proof of insurance is not required and they have no interest in seeing it. I'm not trying to be rude...I'm just telling you the way it is.

Auto Enthusiast
Jun 12, 09, 9:50 pm
Thanks for clarifying. I brought up the insurance letter only because a FL used car mom-and-pop once said if I don't hand them proof via an official letter/declaration that I'm covered by my policy, I have to purchase theirs. Thanks again for clarifying what to expect at MIA Hertz. Hopefully the online check-in will speed things up a bit.

moman
Jun 12, 09, 10:52 pm
I would stop upgrading people into SUVs. I have a rental with Hertz tomorrow, 5* with midsize, I hope they don't give me an upgrade or I'll be fighting with them again. With these kind of gas prices, I don't want to pay the extra fuel a SUV takes.

Plus at STL the Gold counter is closed on weekends, necessitating a trip to the main counter which is a good walk.

Hertz employees could use a good lesson in customer service. I always weight Hertz employees vs. ERAC pushiness. Since they were both the same price this week, I used Hertz as at least I'll get some points, with ERAC there is no rewards program that I know of, yet they are always 'working on it'.



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