Hertz set to unveil new pricing strategy

Car rental and leasing specialist Hertz is planning to unveil a “dynamic pricing strategy” in a bid to shed its image as a pricey option.

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By  Gemma Hornett Published  May 4, 2006

Car rental and leasing specialist Hertz is planning to unveil a “dynamic pricing strategy” in a bid to shed its image as a pricey option. “People perceive us as the most expensive car rental company, but we’re not. We plan to introduce a price structure that is more proactive and flexible,” Nitin Sapre, sales and marketing manager, Hertz UAE told ATN. “We won’t be discounting, we’ll just be more competitive. Hertz has built up a reputation as a credible premium brand and we don’t want to dilute this. Nitin also emphasised that Hertz pre-paid rates, known as ‘World on Wheels ‘deals, were “very attractive” and that Hertz plans to promote these to GCC agents when it takes part in the DTCM’s agent roadshow later this month. According to Sapre, Hertz had a “brilliant 2005”, increasing revenue by 44%. The most significant growth was witnessed by the company’s long term leasing category (one year or more), which represents 50% of Hertz business in the UAE. The second fastest growing category was daily car hire (30% of business) and the remainder was attributed to mid-term car rental for up to 11 months (30% of business). Growth has been achieved by expanding the Hertz fleet and moving to a new four-acre UAE headquarters on Airport Road, Dubai, which boasts a retail outlet, 24-hour call centre, used car lot and workshop. “More than 70% of our inbound rental business is from the GCC,” said Sapre, adding that inbound business would be further boosted now Hertz had doubled the size of its counter and manpower at Dubai International Airport. “Six months ago we had the largest market share at the airport at 22%, with our nearest competitor at 19%, so I guess we could have exceeded that now,” he explained. Hertz is also keen to push outbound business, particularly through travel agents, a distribution channel that represents 30% of the company’s rental business. “Agents play a massive role, especially as the online market is not big here,” said Amanda Oyevaar, international sales executive, Hertz UAE. She plans to visit agents on a one-to-one basis following the DTCM roadshow.

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