Corporate demand is moving toward pre-pandemic levels despite higher pricing, according to executives of Hertz Global Holdings, speaking on a fourth-quarter earnings call. Kenny Cheung, CFO, said corporate activity in the quarter proved strong, which was beneficial to midweek utilization. He said that in the Americas, as of the fourth quarter, corporate volume was at about 80% of 2019 levels.

The company is continuing its recent success of near 100% corporate contract renewal, with many coming at higher renegotiated pricing, according to Stephen Scherr, CEO. He said corporate customers are focused on electric vehicles to satisfy their environmental, social and governance commitments. The average corporate rental in 2022, said Scherr, was about 1.5 days longer than in the previous year.

Executives also said the company is revamping its Dollar and Thrifty brands to help increase sales from more price-sensitive business travelers. Scherr said the two brands “are performing shy of their potential.”

Hertz reported $2 billion in revenues in the quarter, up 4% from the fourth quarter of 2021. Its adjusted corporate earnings before interest, taxes, depreciation and amortization (or EBITDA) was $309 million. Net income was $116 million.

Business Travel News Promo

Revenue for the full year was $8.7 billion, up 18% over 2021. Adjusted corporate EBITDA was $2.3 billion, with net income of $2.1 billion.