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How does Hertz Book Revenue/Costs for Locations?

How does Hertz Book Revenue/Costs for Locations?

Old Jun 10, 20, 9:44 pm
  #1  
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How does Hertz Book Revenue/Costs for Locations?

I have a pretty good relationship with my HLE and I want to throw them some business so here’s my question...
if I rent a BMW/Rover from the PC zone at an airport and bring it to the HLE as a one way...and ask them to check the car back out to me from their location does this
A) help them because revenue is revenue and it will show the location being active and used
B) hurt them because they’re giving me a 50 thousand dollar car for 20 bucks a day and they are taking a loss as they’re assessed the value of that car’s payments since it’s now in their inventory instead of the airports?
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Old Jun 11, 20, 4:55 am
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Before COVID-19, I mostly did one-ways from LGA into my local HLE . I've asked the staff there more than once if the nicer cars I was dropping off had any benefit to them and was told that HLE inventory is tightly-managed and they don't get to keep many cars on site (understandable as in NYC, every parking space in a garage is $$$). Indeed, if you return a car on a Sunday evening, you may encounter a team of drivers Hertz has hired who are there to drive off the weekend inventory and redistribute it back to the airports or other central lots. In general, I was told that the Premium/Luxury cars are the most likely not to remain at an HLE.
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Last edited by FlyinHawaiian; Jun 11, 20 at 12:34 pm
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Old Jun 11, 20, 12:36 pm
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Originally Posted by dparkinson View Post
...I rent a BMW/Rover from the PC zone at an airport...
Anyone else see a flaw in the logic here?
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Old Jun 12, 20, 11:42 am
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Originally Posted by FlyinHawaiian View Post
Before COVID-19, I mostly did one-ways from LGA into my local HLE . I've asked the staff there more than once if the nicer cars I was dropping off had any benefit to them and was told that HLE inventory is tightly-managed and they don't get to keep many cars on site (understandable as in NYC, every parking space in a garage is $$$). Indeed, if you return a car on a Sunday evening, you may encounter a team of drivers Hertz has hired who are there to drive off the weekend inventory and redistribute it back to the airports or other central lots. In general, I was told that the Premium/Luxury cars are the most likely not to remain at an HLE.
FWIW, I was told by HLE in NJ they cannot rent out certain premium classes (BMW 5er) even if it means sitting on HLE lot for a week waiting for Hertz to send a driver to return back to LGA/EWR/JFK.

Last edited by seawolf; Jun 12, 20 at 11:48 am
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Old Jun 12, 20, 2:20 pm
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Originally Posted by seawolf View Post
FWIW, I was told by HLE in NJ they cannot rent out certain premium classes (BMW 5er) even if it means sitting on HLE lot for a week waiting for Hertz to send a driver to return back to LGA/EWR/JFK.
Yes, hertz currently has a nationwide hold on all of the BMWs at HLEs. I know the reason but I afraid I might not be able to disclose it here as I met one of the area manager who happens to work out of the HLEs that I rent from often and he told me the reason.

But yes, for now all BMWs are airport locations only. Other luxury cars are fine for now.

And to OP, HLEs have a formula where they have different depreciation for class of cars, and if you happen to book a lower class but exceed the depreciation for the specific car the managers are allow to free upgrade you whereas say if you book a premium or luxury class if the rate is too low HLEs are trained to downgrade you and give you a credit/free gas rather than free upgrade you into a prestige car.

For airport location they have a different method of calculation where they just take the fleet they have and total depreciation and use the total revenue against the depreciation to compare profit therefore they can give out the nicer upgrades.
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Old Jun 12, 20, 4:13 pm
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Originally Posted by LJ7006 View Post
For airport location they have a different method of calculation where they just take the fleet they have and total depreciation and use the total revenue against the depreciation to compare profit therefore they can give out the nicer upgrades.
I don't understand, I thought in this "Ultimate Choice" world nobody is getting specific upgrades anyway? You just go to the section and grab your car of choice
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Old Jun 12, 20, 5:02 pm
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Originally Posted by LJ7006 View Post
Yes, hertz currently has a nationwide hold on all of the BMWs at HLEs. I know the reason but I afraid I might not be able to disclose it here as I met one of the area manager who happens to work out of the HLEs that I rent from often and he told me the reason.

But yes, for now all BMWs are airport locations only. Other luxury cars are fine for now.

And to OP, HLEs have a formula where they have different depreciation for class of cars, and if you happen to book a lower class but exceed the depreciation for the specific car the managers are allow to free upgrade you whereas say if you book a premium or luxury class if the rate is too low HLEs are trained to downgrade you and give you a credit/free gas rather than free upgrade you into a prestige car.

For airport location they have a different method of calculation where they just take the fleet they have and total depreciation and use the total revenue against the depreciation to compare profit therefore they can give out the nicer upgrades.
FYI - I was actually referring to what HLE told me from 9 months ago that HLEs are not allowed to rent out certain classes so nothing to do with COVID or bankruptcy.
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Old Jun 14, 20, 2:08 am
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Fascinating and illuminating information. Anyone know if NY, San Fran and Boston downtown locations do their accounting the same way as airports or HLEs?
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Old Jun 15, 20, 5:41 am
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Originally Posted by dparkinson View Post
Fascinating and illuminating information. Anyone know if NY, San Fran and Boston downtown locations do their accounting the same way as airports or HLEs?
Yes, as those are technically HLE's.
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Old Jun 15, 20, 11:29 am
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Originally Posted by seawolf View Post
FYI - I was actually referring to what HLE told me from 9 months ago that HLEs are not allowed to rent out certain classes so nothing to do with COVID or bankruptcy.
Why though?
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