Hertz Global Holdings, Inc. (NASDAQ:HTZ) Q2 2023 Earnings Call Transcript

So, in other words, the fixation on rate in and of itself, I think starts to skew because as we’ve said, what we do in Rideshare will be a lower RPD, but longer length of keep and lower expense and better and more accretive margin. What we do in insurance replacement may be dilutive to RPD, but again, big length of keep, lower expression of cost, better margin. So, each of these channels will express different levels of margin potential. All that feeds into the ROA, by the way, even in the context of what we’re planning on doing with Dollar. Right now, Dollar has been an inferior product. The customer experience has been a poor one. When you go onto Expedia, because the rating on Dollar is much lower than Budget at Avis, we have no choice but to keep a low rate.

As we improve the customer experience on Dollar, we will have room to take that rate up, okay? As we take that rate up, just know that we will be using lower depreciating vehicles in that to create margin. So, I’m just giving you kind of a walkaround the business plan, all with a central focus on ROA, all with a central focus on returns, all with a central focus on managing this fleet, as you would expect an asset manager to do, and generating increasing returns for our shareholders.

Christopher Stathoulopoulos: Great. That’s great color. Thank you. Thank you. This concludes today’s Q&A session. I would now like to hand the call over to Stephen Scherr, Chief Executive Officer. Please go ahead.

Stephen Scherr: Thank you all for your participation today. Before we close the call, I want to thank the more than 20,000 employees of Hertz for their continued service and their attention to our customers, particularly as we’re in the busy summer season. We look forward to sharing further updates with you on our next call. And with that, I’ll send it back to the operator.

Operator: This concludes the Hertz Global Holdings second quarter 2023 earnings conference call. Thank you for your participation.