Dollar Rent A Car

Last updated

Dollar Rent A Car
FormerlyDollar A Day Rent A Car
Company type Subsidiary
Industry Car rental
Founded1965;59 years ago (1965), in Los Angeles, California, United States
Founder Henry Caruso
Headquarters
Estero, Florida
,
United States
Parent Hertz Global Holdings
Website dollar.com

Dollar Rent A Car (formerly known as Dollar A Day Rent A Car) is an American car rental agency, headquartered in Estero, Florida, with offices in many countries around the world. Dollar is owned by The Hertz Corporation, along with other agencies including Hertz Rent A Car, Firefly Car Rental and Thrifty Car Rental. Dollar typically caters to budget-conscious leisure travelers.

Contents

Company history

Dollar Rent A Car was founded in Los Angeles, California, in 1965 by Henry J. Caruso. [1] It was purchased by The Chrysler Corporation for an undisclosed amount on August 15, 1990, and joined Chrysler's Pentastar Transportation Group in Tulsa, Oklahoma. [2] [3] This acquisition merged Dollar Rent A Car with Thrifty Car Rental – forming Dollar Thrifty Automotive Group in 1997. [4] Dollar's focus remained on company-owned rental locations at major airports to service both tourists and leisure rental markets. [5]

Both Dollar Rent A Car and Thrifty Car Rental formed an agreement in 1997 with The SABRE Group, Inc., a leader in electronic distribution systems within the travel industry, to manage the subsidiaries’ routine information processing, system engineering, and reservation management functions in a secure underground facility. [6]

Operating under Dollar Thrifty Automotive Group, Dollar earned US$617.53 million in 1997, with company-owned stores generating 91 percent of revenue, compared to $499.17 million in 1996. [7] By this time, the car rental provider employed a staff of 5,400 as of September 1997. [8] Dollar maintained an average fleet of 61,336 vehicles in 872 locations in 1997, compared to 1995's fleet of 52,571. [9] [10]

In the coming years, the combined fleets and US locations of both Dollar and Thrifty grew in the following numbers:

The Hertz Corporation announced the company would purchase of Dollar Thrifty Automotive Group for US$2.3 billion (equivalent to $3 billion in 2023) on November 19, 2012. [17]

As a result of the impact of the COVID-19 pandemic on tourism, on April 30, 2020, Hertz announced that it has missed lease payments on its fleet and was seeking support of its lenders in an attempt to avoid bankruptcy. [18] On May 22, 2020, the company filed for Chapter 11 bankruptcy because it did not reach an agreement with top lenders. [19] [20] The company emerged from bankruptcy in early 2021. [21]

International growth

Dollar connected with Paris-based Europcar International in 1997 to integrate reservations systems in the United States and Europe. [22] This allowed Europcar and Dollar customers in the United States, Canada, and Latin America to reserve cars belonging to each brand beginning February 1, 1998. The collaboration resulted in 2,800 locations in 134 countries with a shared fleet of approximately 175,000 vehicles. [23]

With increased concentration on foreign-tour operators, especially those in the United Kingdom, Dollar expanded their car rental services through corporate-owned locations in Europe in 2013. [24] Initial focus grew towards Belgium, France, Luxembourg, the Netherlands, resulting in 114 corporate location openings by summer 2013. [25] An additional 22 locations opened in Spain shortly after. [26] [27] By 2014, Dollar and Thrifty Automotive signed a partnership agreement with Ryan's Investments in Ireland in February 2014. [28] This gave the car rental brand locations in all major Irish airports and downtown locations in Cork, Dublin, Kerry, Knock, and Shannon. [29] Dollar and Thrifty reported 29 new locations in Italy, including Rome, Milan, Venice and Naples in February 2015. [30]

Dollar's Poland operations began in 2008, and later merged with NFM Group, an independent rental company providing long- and short-terms rentals in Poland, in March 2017. [31] It was later announced in May that Dollar would operate in Colombo, the capital of Sri Lanka, after a multi-brand partnership agreement with franchise partner Andrew The Car Rental Co. Ltd. [32] This provided modern fleets and chauffeur services amongst Hertz, Dollar, and Thrifty locations in the area. [33]

Fleet and rental locations

By 1997, Dollar Rent A Car was known to serve value-oriented travelers, including travel for leisure, small business, and tourism. [34] In the late 1990s, rental locations in Florida, California, Hawaii, and Nevada were held responsible for 80% of Dollar's 1996 fiscal revenue, and 76% in 1997. [35] [36] By 2011, international areas served include Australia, Canada, Caribbean Islands, Latin America, with a concentration on local markets and airport locations. [37]

Along with car, truck, and crossover rental services, Dollar Rent A Car provides ski racks, child safety seats, navigation, and operational support to renters. [38] As of February 2017, Dollar Rent A Car and Thrifty Car Rental maintained 1,500 franchised branches, 840 of which are in the United States and Canada. [39] [40]

In recent years, Dollar has expanded their fleet to offer more upscale rental vehicles, which include vehicles such as the BMW X1, BMW X3, Cadillac Escalade, Infiniti QX60, Mercedes-Benz CLA, Mercedes-Benz C Class, and Mercedes-Benz E Class AMG. [41]

Controversies

Dollar Rent A Car charged $15 "administrative fees" each time when a customer passed through a cashless toll. [42] [43] In August 2018, Florida Attorney General Pam Bondi filed suit against Dollar and Thrifty rental car companies for allegedly deceiving motorists and charging "grossly inflated" fees. [44] In January 2019, Florida Attorney General has settled the lawsuit against the Dollar and Thrifty rental car companies over misleading toll fees. Customers who rented a car from Dollar or Thrifty between Jan. 1, 2011 and Jan. 7, 2019, and were misled about the fees can file a claim with the Attorney General's Office for a full or partial refund. [45]

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References

  1. ↑ "Chrysler to Purchase No. 4 Dollar Rent A Car : Rentals: The buyout of the privately held, Los Angeles-based car leasing firm continues a trend of auto makers buying into such companies to obtain captive markets for their vehicles". Los Angeles Times. June 1990. Retrieved November 13, 2017.
  2. ↑ "COMPANY NEWS; CHRYSLER SELLS SNAPPY RENTAL CAR DIVISION". The New York Times. September 1994. Retrieved November 13, 2017.
  3. ↑ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 13, 2017.
  4. ↑ "Chrysler to Acquire Dollar Rent A Car". Chicago Tribune. 1997. Archived from the original on March 23, 2017. Retrieved November 13, 2017.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  5. ↑ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 13, 2017.
  6. ↑ "The SABRE Group 1997 Annual Report" (PDF). The SABRE Group. 1997. Retrieved November 14, 2017.
  7. ↑ "Dollar Thrifty Automotive Group, Inc. History". Funding Universe. 2017. Retrieved November 14, 2017.
  8. ↑ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 14, 2017.
  9. ↑ "Dollar Thrifty Automotive Group, Inc. History". Funding Universe. 2017. Retrieved November 14, 2017.
  10. ↑ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 14, 2017.
  11. ↑ "U.S. Car Rental Market: Fleet". Auto Rental news. 2001. Retrieved November 14, 2017.
  12. ↑ "2004 U.S. Car Fleet Locations" (PDF). Auto Rental News. 2004. Retrieved November 14, 2017.
  13. ↑ "2006 U.S. CAR RENTAL MARKET Fleet, Locations, and Revenue" (PDF). Auto Rental News. 2006. Retrieved November 14, 2017.
  14. ↑ "Dollar Thrifty Automotive Group, Inc. 2006 Form 10-K" (PDF). Dollar Thrifty Automotive Group. 2006. Archived from the original (PDF) on November 9, 2017. Retrieved November 14, 2017.
  15. ↑ "2009 U.S. CAR RENTAL MARKET FLEET, LOCATIONS, AND REVENUE" (PDF). Auto Rental News. 2009. Retrieved November 14, 2017.
  16. ↑ "2012 U.S. CAR RENTAL MARKET FLEET, LOCATIONS, AND REVENUE". Auto Rental News. 2012. Retrieved November 14, 2017.
  17. ↑ "Hertz Wins Bid to Buy Dollar Thrifty". Terlep, Sharon and Dezember, Ryan. Wall Street Journal. 2012. Retrieved November 6, 2017.
  18. ↑ Welch, David (April 30, 2020). "Hertz in push to avoid bankruptcy - Business down 80% since pandemic took hold". SFGate. Retrieved May 1, 2020.
  19. ↑ Gladstone, Alexander; Lombardo, Cara (May 22, 2020). "Hertz Preparing Bankruptcy Filing as Soon as This Weekend". Wall Street Journal. Dow Jones. Retrieved May 22, 2020.
  20. ↑ "Hertz files for U.S. bankruptcy protection as car rentals evaporate in pandemic". Reuters . May 22, 2020. Retrieved May 22, 2020.
  21. ↑ Lipschultz, Bailey (July 1, 2021). "Hertz Stock Rages On After Bankruptcy With Surge, Then Plunge". Bloomberg.
  22. ↑ "Dollar Rent A Car and Europcar Announce Alliance". The Auto Channel. December 1997. Retrieved November 14, 2017.
  23. ↑ "Dollar Rent A Car and Europcar Announce Alliance". The Auto Channel. December 1997. Retrieved November 14, 2017.
  24. ↑ "Dollar, Thrifty Open More Locations in Italy". Auto Rental News. February 2015. Retrieved November 15, 2017.
  25. ↑ "Dollar Thrifty Automotive Group Announces Expansion of Brands in Europe". Auto Rental News. June 2013. Retrieved November 15, 2017.
  26. ↑ "Dollar, Thrifty Open More Locations in Italy". Auto Rental News. February 2015. Retrieved November 15, 2017.
  27. ↑ "Dollar Thrifty Automotive Group Announces Expansion of Brands in Europe". Auto Rental News. June 2013. Retrieved November 15, 2017.
  28. ↑ "Hertz Expands Thrifty, Dollar Brands in Ireland". Auto Rental News. February 2014. Retrieved November 15, 2017.
  29. ↑ "Hertz Expands Thrifty, Dollar Brands in Ireland". Auto Rental News. February 2014. Retrieved November 15, 2017.
  30. ↑ "Dollar, Thrifty Open More Locations in Italy". Auto Rental News. February 2015. Retrieved November 15, 2017.
  31. ↑ "Car rental firms Dollar and Thrifty join NFM Group". WBJ. February 2017. Archived from the original on November 9, 2017. Retrieved November 16, 2017.
  32. ↑ "Hertz, Dollar, Thrifty Brands Launch in Sri Lanka". WBJ. May 2017. Retrieved November 15, 2017.
  33. ↑ "Hertz, Dollar, Thrifty Brands Launch in Sri Lanka". WBJ. May 2017. Retrieved November 15, 2017.
  34. ↑ "FORM 10-K". U.S. SECURITIES AND EXCHANGE COMMISSION. December 1997. Retrieved November 17, 2017.
  35. ↑ "FORM 10-K". U.S. SECURITIES AND EXCHANGE COMMISSION. December 1997. Retrieved November 17, 2017.
  36. ↑ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 17, 2017.
  37. ↑ "FORM 10-K for DOLLAR THRIFTY AUTOMOTIVE GROUP, INC". United States Securities and Exchange Commission. December 2011. Retrieved November 17, 2017.
  38. ↑ "How do I handle Snow and Ice in a Rental Car?". AutoSlash. February 2021. Retrieved April 9, 2021.
  39. ↑ "FORM 10-K for DOLLAR THRIFTY AUTOMOTIVE GROUP, INC". United States Securities and Exchange Commission. December 2011. Retrieved November 17, 2017.
  40. ↑ "Car rental firms Dollar and Thrifty join NFM Group". WBJ. February 2017. Archived from the original on November 9, 2017. Retrieved November 17, 2017.
  41. ↑ https://hermascars.com
  42. ↑ "Rental car companies charge extra fees if you're in a state with electronic tolls, and they're getting sued over it". Washington Post. September 2014. Retrieved June 18, 2019.
  43. ↑ "Car rental companies find a way to ding motorists for electronic tolling". Chicago Tribune. December 2017. Retrieved June 18, 2019.
  44. ↑ "This rental car company just got sued by Florida over fees it charged customers for tolls". Miami Herald. August 2018. Retrieved June 18, 2019.
  45. ↑ "If you rented from Dollar or Thrifty in Florida you might be due a refund. Here's how". Miami Herald. January 2019. Retrieved June 18, 2019.
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