MEMORANDUM

DATE:   November 20, 2007

TO:        All Auto Rental Operators

FROM:  Phyllis Worthington, Director of Surveys

              ABRAMS TRAVEL DATA SERVICES

RE:  ATD’s Auto Rental Industry Benchmarking Project

Abrams Travel Data Services (ATD) would like to invite you to participate in a first-of-its-kind, comprehensive industry data collection and reporting service, the ATD Car Rental Operator Benchmark Survey. As a participant in this quarterly survey, you would receive a complimentary, detailed report tracking industry benchmarks and trends for a variety of critical performance indicators.  We are in our 5th year of conducting this study, and the results to date have been extremely valuable to participants.

Why did ATD embark on this project? The car rental industry has, until now, been unique in its lack of comprehensive, credible performance and trend indicators. Some operators have participated in small groups that shared data on a limited basis; however, until the ATD Benchmark Project, there has never been an exhaustive, nationwide benchmark survey that included operators of all sizes, market mixes, geographic regions and featured representation from franchisees of the major systems and independents. ATD, as a service organization trusted and respected for its independence, professionalism, and integrity for almost a quarter of a century, is the logical resource to conduct this ongoing study.

The ATD Car Rental Operator Benchmark Survey will collect data from a wide sampling of car rental operators on a number of benchmarks, including:

·        Rental days, rental volume & length of rental

·        Utilization

·        Daily dollar average, RPU & RPT

·        Fleet & personnel expense as a % of revenue

·        A Confidence Index for the upcoming two quarters

A database of accurate, comprehensive auto rental industry statistics will be utilized by car rental operators, fleet finance companies, fleet insurers, suppliers to the industry, analysts and banks, and the media. Previously, operators have been hurt by this lack of critical industry data, since financial service companies, credit rating agencies, journalists, legislators and regulators, and others have at times used inaccurate or misleading data on the industry to make decisions that have adversely affected car rental operators.  The ATD Car Rental Operator Benchmark Survey offers operators and those who have an interest in the performance of the industry, an authoritative database to track the industry’s health and business climate, and a means to compare individual company performance to standards segmented on the basis of region, market mix, and fleet size.

Car rental operators choosing to participate in this quarterly survey will electronically submit their survey forms to ATD under strict confidentiality and data protection procedures. Their data will be aggregated with information provided by the other participating operators, so that it would be impossible to identify the benchmark numbers of any one operator. ATD, as a business unit of Abrams Consulting Group, Inc. (ACG), the leading specialized consulting and research firm worldwide since 1982, follows thorough data integrity and confidentiality protocols.  After one year, there has not been a single breach of our security procedures.

ATD will present the findings from this survey in a detailed report that will be emailed to you each quarter that you participate and to subscribers of ATD’s Car Rental Market Scan. The report, along with all communications related to the benchmark survey, will be transmitted electronically via the Internet. The report will present detailed tables, charts, and graphs that will dissect, segment, and analyze the data collected such as:

·     how performance indicators have changed over time

·  A Confidence Index relating to the upcoming six months of business

·   how the performance of operators in specific regions, markets (such as airport and local), and fleet sizes compare with each other on a variety of performance indicator benchmarks.

In the Index on the left, you may click on our Confidentiality & Participant Agreement (CPA). As you will see by reading the CPA, it protects both the participating operator and ATD by clearly detailing the data collection process, data confidentiality and integrity, terms of use, limitations and restrictions, and other important issues. If you would like to join us as a survey participant, please fill out, execute, and return the agreement. You can fill out, execute, and return the agreement in one of two ways: you can either print out and complete the CPA and fax it back to ATD at 914-696-5101; or, you can print out and complete the document and scan it, and email it back to ATD at pworthington@abramsconsulting.com.

We will need to have your completed agreement returned to us no later than November 20, 2007, in order for you to participate in this quarterly survey (the results of which will be released on or around January 15, 2008). The CPA will be in full force and effect for each survey in which you participate, and will be kept on file. The actual survey form will be sent to all participating operators by February 1st.  To your left, you may click on a sample copy of what the survey form will look like so that you can review the content, but it is not meant to be completed at this time.

If you have any questions about the ATD Car Rental Operator Benchmark Survey or the CPA, please call Phyllis Worthington at 914-696-5100, or email me at pworthington@abramsconsulting.com.