Thrifty Car Rental

Thrifty Car Rental
Company typeSubsidiary
IndustryCar rental
Founded1958; 66 years ago (1958)
Headquarters
Estero, Florida
,
United States
Number of locations
1,061 locations (2022)[1]
OwnerThe Hertz Corporation
Websitethrifty.com

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

History

Thrifty Car Rental was established in 1958.[2][3] The company completed an initial public offering (IPO) of common stock in 1987. It would grow in size by purchasing Ohio-based Snappy Car Rental for US$40 million in May 1989.[4]

By the end of 1989, the company was acquired by the Chrysler Corporation for US$263 million (equivalent to $621 million in 2022) and merged into the company's Pentastar Transportation Group.[2] A few months later, Chrysler would also purchase Dollar Rent A Car. In September 1994, Chrysler would sell Snappy Car Rental to a group of investors.[5]

On December 23, 1997, Chrysler spun off its car rental operations into the Dollar Thrifty Automotive Group with an IPO, as part of an effort to reduce operating expenses at Chrysler.[6][7][8] By the end of the 1997 fiscal year, Dollar Thrifty Automotive maintained 872 locations in the United States and employed a staff of 5,400.[9][10]

Fleet sizes and locations in the United States:

  • 1999 - 149 company-owned US locations with 123,814 vehicles between Dollar and Thrifty brands[11]
  • 2001 - 130,252 cars in service with 540 locations in the US (includes 162 airport locations)[11][12]
  • 2003 - 310 company-owned and 513 franchisee locations in the US[11]
  • 2006 - 407 US corporate locations with revenue of US$1.534 billion[13][14]
  • 2010 - Thrifty's rental system includes 331 locations in the US and Canada.

The Hertz Corporation announced the company would purchase of Dollar Thrifty Automotive Group for US$2.3 billion (equivalent to $3 billion in 2022) on November 19, 2012.[15]

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.[16] On May 22, 2020, the company filed for Chapter 11 bankruptcy because it did not reach an agreement with top lenders.[17][18] The company emerged from bankruptcy in early 2021.[19]

Dollar and Thrifty locations across the United States have faced multiple class action lawsuits[1] for duplicitous actions. Even after settlement of class action lawsuits against the company, there continues to be widespread evidence [2] of sales counter agents adding unwanted premium services and fees to customers’ rentals. Sales agents intentionally target older adults and parents of young children who are distracted. Since these unwanted charges are intentional, if a customer calls to remove a charge once it is realized, their phone and online systems are intentionally designed to force the customer to resolve in-person at an airport desk where at least 45 minute waits are the norm.

Operations

The Thrifty brand typically caters to budget-conscious leisure travelers renting from airports.[20][21]

The Blue Chip Rental Express Program

Thrifty Car Rental's free Blue Chip Express Rental Program was introduced to the U.S. and Canada in 2008.[22] It offers expedited pickup and returns processes, choosing vehicle type, insurance coverage, designated lines at the counter, and syncing airline rewards.[23][22]

References

  1. ^ "General information". Thrifty Car Rental. Retrieved August 11, 2022.
  2. ^ a b "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 5, 2017.
  3. ^ "Thrifty Car Rental". Travel Commerce Network. 2017. Retrieved November 6, 2017.
  4. ^ "COMPANY NEWS; Thrifty Rent-A-Car To Buy Snappy Car". The New York Times. 1989. Retrieved November 5, 2017.
  5. ^ "COMPANY NEWS; CHRYSLER SELLS SNAPPY RENTAL CAR DIVISION". The New York Times. 1994. Retrieved November 6, 2017.
  6. ^ "Dollar Thrifty Automotive Group Announces Key Leadership Changes; Paxton Named President and CEO". F&I and Showroom. 2003. Retrieved November 6, 2017.
  7. ^ "Chrysler Will Spin Off Its Dollar Thrifty Unit". The Wall Street Journal. 1997. Retrieved November 6, 2017.
  8. ^ "Dollar Thrifty Automotive Group, Inc. History". Funding Universe. 2017. Retrieved November 6, 2017.
  9. ^ "Chrysler to Acquire Dollar Rent A Car". Chicago Tribune. 1990. Retrieved November 6, 2017.
  10. ^ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 6, 2017.
  11. ^ a b c "Form 10-K for DOLLAR THRIFTY AUTOMOTIVE GROUP, INC". United States Securities and Exchange Commission. 2003. Retrieved November 6, 2017.
  12. ^ "U.S. Car Rental Market: Fleet". Auto Rental news. 2001. Retrieved November 6, 2017.
  13. ^ "2006 U.S. CAR RENTAL MARKET" (PDF). Auto Rental News. 2006. Retrieved November 8, 2017.
  14. ^ "Dollar Thrifty Automotive Group 2006 Form 10-K" (PDF). Corporate Library. 2006. Retrieved November 8, 2017.
  15. ^ "Hertz Wins Bid to Buy Dollar Thrifty". Terlep, Sharon and Dezember, Ryan. Wall Street Journal. 2012. Retrieved November 6, 2017.
  16. ^ Welch, David (April 30, 2020). "Hertz in push to avoid bankruptcy - Business down 80% since pandemic took hold". SFGate. Retrieved May 1, 2020.
  17. ^ 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.
  18. ^ "Hertz files for U.S. bankruptcy protection as car rentals evaporate in pandemic". Reuters. May 22, 2020. Retrieved May 22, 2020.
  19. ^ Lipschultz, Bailey (July 1, 2021). "Hertz Stock Rages On After Bankruptcy With Surge, Then Plunge". Bloomberg.
  20. ^ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC (DTG) IPO". Nasdaq. 2017. Retrieved November 8, 2017.
  21. ^ "DOLLAR THRIFTY AUTOMOTIVE GROUP INC". EDGAR Online. 2017. Retrieved November 8, 2017.
  22. ^ a b "Thrifty Blue Chip Rewards Offers Free Car Rentals". Maximizing Money. 2008. Retrieved November 9, 2017.
  23. ^ [blog.autoslash.com/the-low-down-on-thrifty-blue-chip "The Low Down on Thrifty Blue Chip"]. AutoSlash. 2021. Retrieved April 9, 2021. {cite web}: Check |url= value (help)