The Blaskey Group

We look forward to seeing many of you next week at the 2024 International Car Rental Show in Las Vegas. Our very own David Blaskey will be moderating a speaking panel - "Succession Planning and How To Value Your Auto Rental Business." You don't want to miss it! If you are interested in discussing a potential project, please go to theblaskeygroup.com, attend Tuesday's panel, or find us walking the floor throughout the convention.

Very exciting development for Sixt today. This service simultaneously removes range anxiety and other friction from the EV rental process, and creates stickiness with the company's native app both during and outside an active rental. This is how you deliver a strong value proposition and drive repeat business in a segment of the travel industry with historically less brand loyalty than airlines and hotels.

Hertz has announced the disposition of 20,000 electric vehicles, or one third of its global EV fleet, resulting in a $245 million depreciation charge in Q4'23. The moves comes as the company's EV strategy is still in its infancy, and is driven by a variety of factors including weak demand, higher than expected repair costs, and an OEM-led reduction in residual values. The company is positioning this as a right-sizing of their fleet in light of broader market factors, ultimately resulting in higher adjusted EBITDA in 2024 and 2025. Time will tell if there are additional impairments in Hertz's future, but one key takeaway is the divergence of EV adoption between car rental customers and private vehicle owners.   Adoption amongst car rental customers continues to lag overall consumer sentiment, given the transient nature of the driver-vehicle relationship. The rental process is supposed to be short-term, seamless, and designed to remove doubt about transportation logistics for your visit to an unfamiliar city. Many travelers are finding EV rental to be quite the opposite; adding uncertainty around charger location, availability, and scheduling can dramatically enhance the range anxiety that has already slowed general adoption. For many travelers this is a non-starter.   The story of EV rental is still in its opening chapter, and we are seeing the first of what promises to be many plot twists.  Hertz has been out front, generating a lot of publicity and blazing a trail for the rest of the industry. Sometimes the first mover gains a competitive advantage that its rivals can never overcome. And sometimes they end up being the canary in the coal mine.  

Loyalty programs in the car rental industry are not as sticky as equivalent airline and hotel programs. This may be due to a perceived lack of customer value or return on your "loyalty investment." Or maybe it doesn't matter who you rent from, as long as you get your car quickly and without issue. By contrast, professional sports teams have some of the largest, most loyal followings on the planet. They buy apparel, attend games, and proudly support their teams' vendor partners and programs. Sixt has tapped into that enhanced loyalty with their recent NBA partnerships, becoming the official car rental provider for both the Bulls and Lakers in the same week. Let's see how that pro sports halo increases US volumes for this upstart European brand in the coming months.

As consumer needs change and the average customer grows more accustomed to flexible, on-demand and bespoke services, the car rental industry has plenty of whitespace to evolve its offerings. Today Enterprise Holdings announced a fresh new brand campaign, highlighting their renewed focus on differentiated product offerings including subscription and other forms of customizable shared mobility solutions. This comes shortly after the company announced stunning financial and operational results, and reaffirmed their commitment to investing in the future. They appear to be doing just that. Read more below from their President and CEO, Chrissy Taylor.