As an avid traveler, you likely recognize the Hertz and Budget names from airports around the world. But you may be wondering, are these rental car giants actually the same company? I‘m Lillie Gabler, a home improvement expert and fellow rental car aficionado here to provide the scoop.
While Hertz and Budget are two of the biggest brands in car rentals, they operate independently – and each offer distinct amenities, loyalty programs, and pricing to serve different types of travelers. Read on as I walk through the key differences between these ubiquitous rental providers.
They Have Separate Parent Companies
Let‘s start with ownership. Hertz is owned by Hertz Global Holdings, a public company headquartered in Estero, Florida. Hertz also oversees the Dollar, Thrifty, and Firefly car rental brands.
Meanwhile, Budget is owned by Avis Budget Group, headquartered in Parsippany, New Jersey. Avis Budget Group also owns Avis and Payless car rentals.
So while they dominate airport arrival halls worldwide, Hertz and Budget have distinct corporate structures and owners.
Different Rewards Programs Set Them Apart
Beyond corporate ownership, customer loyalty programs are a major difference between Hertz and Budget.
Hertz operates the Hertz Gold Plus Rewards program which lets frequent renters earn points toward free rentals and vehicle upgrades. Nice perks for those willing to pay Hertz‘s premium prices!
Budget offers their Budget Fastbreak program for much the same rewards. As a leisure traveler, I love racking up Budget points to redeem on my road trips and weekend getaways!
Either way, the separate loyalty programs are a clear sign that Hertz and Budget compete as distinct brands.
Each Brand Offers A Unique Rental Experience
Now, as a renter, you likely care more about location availability, vehicle options, and policies over corporate structure. Hertz and Budget have thousands of overlapping airport and neighborhood branches. However, they tailor the rental experience to attract different customers.
According to 2021 sales data, Hertz derives 70% of revenue from airport rentals compared to 60% for Budget. This shows Hertz‘s greater emphasis on business and air travel renters vs. Budget focusing more on local leisure rentals.
Hertz also offers higher-end vehicles like luxury SUVs and sports cars, while Budget fleets mostly compact, mid-size, and minivan models. Based on your own rental needs, one brand may be better suited than the other.
But Their Histories Briefly Aligned
While Hertz and Budget operate independently today, they were both acquired by larger conglomerates during the 1990s and 2000s.
Budget was bought by Cendant Corporation in 1997. At the time, Cendant already owned Avis, so they operated both competing brands.
Meanwhile in 2005, Hertz was taken private by new ownership and then went public again in 2006. In 2012, Hertz acquired Dollar Thrifty Automotive Group, gaining the Dollar and Thrifty car rental brands.
So for a period, Budget and Avis were united under Cendant, while Hertz grew its portfolio of rental companies. But eventually Cendant split, and Hertz and Budget came under separate corporate umbrellas.
Hertz Actually Owns These Other Rental Brands
As mentioned, through acquisitions and growth, Hertz has amassed an impressive roster of car rental companies:
- Dollar Rent A Car: Over 650 branches globally
- Thrifty Car Rental: 1,000+ worldwide locations
- Firefly Car Rental: Discount airport rentals in select countries
- Advantage Rent a Car: Added in Hertz‘s 2013 acquisition spree
Hertz also owns several vehicle leasing and equipment rental companies:
- Donlen Corporation provides fleet management and leasing
- HERC Rentals supplies equipment like aerial lifts and moving trucks
- Hertz Equipment Rental Corporation rents tools, party gear, electronics and more
So while Budget focuses solely on car rentals, Hertz has diversified into related transportation equipment and services.
Avis Budget Group Is The Parent of Budget and Avis
As we‘ve covered, Budget is part of the Avis Budget Group conglomerate, which also owns:
- Avis Car Rental: 5,500+ global rental locations
- Payless Car Rental: Budget brand with airport and local branches
- Maggiore Group: 150+ rental sites across Italy
- France Cars: French rental company with 25 city and airport spots
Similar to Hertz, Avis Budget Group oversees a range of rental brands at varying price points. But nearly 80% of the company‘s revenue comes from Avis and Budget alone. These two brands make up the bulk of their fleet vehicles and locations.
Key Differences at a Glance
To recap, while Hertz and Budget compete globally in car rentals, they have distinct approaches as outlined here:
| Hertz | Budget | |
|---|---|---|
| HQ Location | Estero, FL | Parsippany, NJ |
| Brands Owned | Hertz, Dollar, Thrifty, Firefly | Budget, Avis, Payless |
| Revenue Breakdown | 70% airport, 30% local | 60% airport, 40% local |
| Loyalty Program | Gold Plus Rewards | Fastbreak |
| Vehicle Types | Luxury, premium classes | Budget-friendly economy |
| Primary Customer | Business travelers | Value-focused leisure |
Tips for Finding the Best Rental Rates
As a frequent renter myself, I‘m always looking for ways to save on car rentals for road trips and family vacations. Here are some of my tips:
- Compare rates across rental companies using aggregator sites like Kayak. Differences can be huge!
- Join loyalty programs for special member discounts – Budget‘s is free to join.
- Check individual rental company websites for limited time deals.
- Book further in advance for lower prepay rates.
- Opt for airport shuttle or Uber vs. pricey airport rentals.
- Avoid unnecessary add-ons like GPS and car seats. BYO!
- Use credit card and organizational discounts like AAA.
- Leverage social media and retail promo codes when available.
- Consider alternatives like Turo peer rentals for one-way or hourly trips.
With flexible timing and an eye out for deals, you can score some major savings – leaving more for the actual trip!
Hertz Survived Bankruptcy Thanks to Investor Rescue
The pandemic dealt a huge blow to the travel industry, Hertz included. With global tourism down, Hertz‘s revenue dropped from $9.8 billion in 2019 to just $5.3 billion in 2020.
The steep decline forced Hertz to declare Chapter 11 bankruptcy in May 2020. However, the company was thrown a lifeline by investors who saw long-term value despite the crisis.
A group led by Knighthead Capital Management and Certares Management purchased Hertz for $4.2 billion in late 2020. The deal provided financial support to restructure debt and streamline operations.
Additional investors like Apollo Global Management and Warburg Pincus committed billions more in funding. This allowed Hertz to complete reorganization and emerge from bankruptcy in 2021.
Are Avis and Budget Merged Together?
While owned by the same parent, Avis and Budget continue to operate as fully separate rental brands – though they have aligned loyalty programs.
It‘s easy to assume Avis and Budget are merged, given their promotion of the "Avis & Budget Connect" rewards platform. This allows cross-earning and redemption between the sister brands.
However, Avis and Budget retain entirely distinct fleets, policies, counter locations, and pricing. They simply partner on customer loyalty initiatives as corporate siblings.
So don‘t expect to see "Avis Budget" hybrid rental counters anytime soon! The brands remain committed to their unique market positioning despite shared ownership.
How Budget Differs From Enterprise and Alamo
As we‘ve covered, Budget is owned by Avis Budget Group – but what about other big rental companies like Enterprise and Alamo?
Enterprise Holdings operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands. However, Enterprise focuses on neighborhood and replacement rentals vs. airports.
Alamo operates in airports, cities and universities, and is known for discounted Florida and Hawaii rentals.
So while Enterprise, Alamo and Budget are major providers, they are completely separate companies. Budget is the only brand owned by Avis Budget Group.
Fun Fact: Budget Has 3,400+ Global Locations
As one of the "big three" rental car companies, Budget has a massive worldwide presence.
Some key facts about Budget‘s global operations:
- Budget has over 3,400 car and truck rental spots worldwide
- 2,000+ Budget locations across the United States
- 1,200+ international rental sites in over 120 countries
- Major airport and city branches across Europe, South America, Asia, Australia, Africa
For comparison, main competitor Hertz has about 3,600 global rental locations – so Budget comes in a close second!
Wherever your travels take you, chances are good you can find a neighborhood Budget lot or busy airport counter ready to rent. Now that‘s convenience!
Budget Remains Independently Owned by Avis Budget Group
While once a small business founded in 1958 in New Jersey, today Budget is wholly owned by the international Avis Budget Group conglomerate.
After various past mergers and acquisitions, Budget became part of the Avis Budget portfolio in 2006. There are no plans to sell or spin-off the brand.
However, Avis Budget Group continues to operate Budget as an independent rental company. They manage separate vehicle fleets, policies, marketing budgets, and customer service channels from sister brand Avis.
Budget maintains its distinct value-driven identity despite shared corporate oversight from parent Avis Budget Group.
The Takeaway
Well there you have it – a comprehensive look at how Hertz and Budget compete in the global rental car industry!
While these ubiquitous brands often cross paths, they operate as fully separate companies with unique ownership, vehicle offerings, and service styles.
Understanding each provider‘s strengths helps you make the ideal choice for your own travel needs and budget. And with insider tips for scoring rental deals, you can start exploring the open road and savoring the journey.
Let me know if you have any other car rental questions! I‘m always happy to share tips and insights from my own experiences as a frequent renter and road trip aficionado.
