The past few years have been good for Hertz. The company has announced that it has enjoyed a long run in stock growth. In fact, during the past two years the company has seen its stock increase by at least 70 percent. This is something that the company does not think will change anytime soon as it is always looking for ways to increase the scope of its business.
The travel industry has had its ups and downs over the years. Although the hotel industry and airline industry are still struggling to find their place in this ever changing market, the car rental industry has remained strong. This is mostly due to the fact that people are not ready to give up their holidays, but instead of buying plane tickets for short trips, they are opting to rent cars instead.
Of course, there are other things that have led to this year-on-year increase in stock prices. For example, the acquisition of Dollar Thrifty helped Hertz see a spike in its stock prices as well. This has really helped Hertz continue to expand its business in the United States, where most of its consumers are corporations.
That being said, Hertz is still not number one in the car rental industry. That is a spot that is still held by Enterprise. However, Hertz does have a plan to address this. It is hoping to tap more into the domestic travel market. This is an area it feels it can improve on. If this is the case, Hertz can expect to see its stocks rise next year as well.
Overall, Hertz believes that its acquisition of Dollar Thrifty will help it focus its efforts more. Due to this, it believes that it can actually pursue different growth opportunities that it normally would have missed out on.
Of course, Hertz has a good reason to think the way that it does. In the past decade, the number of major car hire groups in the United States has dropped from six to three. This means there is less competition, and the remaining car hire companies can continue to expand.
Not all experts in the travel industry are excited to see so many major car rental companies drop out of the game. They worry that the car rental industry may soon be in the same boat as the energy industry in the UK. The energy industry is practically run by six major companies. They have a lock down on the industry, and it makes it extremely difficult for more competition to enter the market. This may soon be what the car rental industry will be like in the United States. However, it would be worse because there are only three major players in the game.
Either way, Hertz shares are already up 50 percent this year alone. In fact, just this past Friday, Hertz closed out at $25.20. The company does expect its share prices to continue to increase. However, at this point, there are still a lot of unknown factors to consider.