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
