Summary
Recent months have been unprecedented in the tourism sector. Travel restrictions, flight suspensions, falling consumer confidence and a slew of negative press are just some of the issues companies are having to contend with. Car rental has suffered as a result of significantly reduced air passenger traffic and the pandemic has exposed structural issues at Hertz.
Key Highlights
Scope
Reasons to Buy
Recent months have been unprecedented in the tourism sector. Travel restrictions, flight suspensions, falling consumer confidence and a slew of negative press are just some of the issues companies are having to contend with. Car rental has suffered as a result of significantly reduced air passenger traffic and the pandemic has exposed structural issues at Hertz.
Key Highlights
- The various travel restrictions and lockdowns implemented across the world have had a serious impact on the car rental industry, due to the significant drop in the number of travellers and, more particularly, the decrease in air passenger traffic.
- Hertz’s revenues dropped by 73% in April YOY and the company announced negative results for Q1 2020.
- The used car market is closely linked to the car rental industry and the decrease in demand for second-hand vehicles caused a severe devaluation of the company’s whole fleet in the United States, hurting the group’s finances.
Scope
- This case study looks at how the COVID-19 pandemic is impacting Hertz and assesses the company's response.
Reasons to Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the car rental industry
- Assess the impact on Hertz
- Understand what the future may hold for the company
Table of Contents
Current COVID-19 situation- Hertz overview
- Impact on Hertz
- Hertz’s response
- Hertz post COVID-19
Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Hertz
- Enterprise
- Avis-Budget
