The Car Rental Industry
January 11, 2012 | 
Author Market Overview
The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in second position with about $5.2 billion and Avis with $2.97 in revenue.
Level of Integration
The rental car industry faces a completely different environment than it did five years ago. According to Business Travel News, vehicles are being rented until they have accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Because of slow industry growth and narrow profit margin, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford.
Scope of Competition
There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two main sources throughout the chain. On the vacation consumer’s end of the spectrum, competition is fierce not only because the market is saturated and well guarded by industry leader Enterprise, but competitors operate at a cost disadvantage along with smaller market shares since Enterprise has established a network of dealers over 90 percent the leisure segment. On the corporate segment, on the other hand, competition is very strong at the airports since that segment is under tight supervision by Hertz. Because the industry underwent a massive economic downfall in recent years, it has upgraded the scale of competition within most of the companies that survived. Competitively speaking, the rental car industry is a war-zone as most rental agencies including Enterprise, Hertz and Avis among the major players engage in a battle of the fittest.
Growth
Over the past five years, most firms have been working towards enhancing their fleet sizes and increasing the level of profitability. Enterprise currently the company with the largest fleet in the US has added 75,000 vehicles to its fleet since 2002 which help increase its number of facilities to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened its international presence in 150 counties as opposed to 140 in 2002. In addition, Avis has increased its fleet from 210,000 in 2002 to 220,000 despite recent economic adversities. Over the years following the economic downturn, although most companies throughout the industry were struggling, Enterprise among the industry leaders had been growing steadily. For example, annual sales reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 billion in 2004 which translated into a growth rate of 7.2 percent a year for the past four years. Since 2002, the industry has started to regain its footing in the sector as overall sales grew from $17.9 billion to $18.2 billion in 2003. According to industry analysts, the better days of the rental car industry have yet to come. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion each year following 2008 “which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.”
Distribution
Over the past few years the rental car industry has made a great deal of progress to facilitate it distribution processes. Today, there are approximately 19,000 rental locations yielding about 1.9 million rental cars in the US. Because of the increasingly abundant number of car rental locations in the US, strategic and tactical approaches are taken into account in order to insure proper distribution throughout the industry. Distribution takes place within two interrelated segments. On the corporate market, the cars are distributed to airports and hotel surroundings. On the leisure segment, on the other hand, cars are distributed to agency owned facilities that are conveniently located within most major roads and metropolitan areas.
In the past, managers of rental car companies used to rely on gut-feelings or intuitive guesses to make decisions about how many cars to have in a particular fleet or the utilization level and performance standards of keeping certain cars in one fleet. With that methodology, it was very difficult to maintain a level of balance that would satisfy consumer demand and the desired level of profitability. The distribution process is fairly simple throughout the industry. To begin with, managers must determine the number of cars that must be on inventory on a daily basis. Because a very noticeable problem arises when too many or not enough cars are available, most car rental companies including Hertz, Enterprise and Avis, use a “pool” which is a group of independent rental facilities that share a fleet of vehicles. Basically, with the pools in place, rental locations operate more efficiently since they reduce the risk of low inventory if not eliminate rental car shortages.
Market Segmentation
Most companies throughout the chain make a profit based of the type of cars that are rented. The rental cars are categorized into economy, compact, intermediate, premium and luxury. Among the five categories, the economy sector yields the most profit. For instance, the economy segment by itself is responsible for 37.7 percent of the total market revenue in 2004. In addition, the compact segment accounted for 32.3 percent of overall revenue. The rest of the other categories covers the remaining 30 percent for the US segment.
Historical Levels of Profitability
The overall profitability of the car rental industry has been shrinking in recent years. Over the past five years, the industry has been struggling just like the rest of the travel industry. In fact, between the years 2001 and 2003 the US market has experienced a moderate reduction in the level of profitability. Specifically, revenue fell from $19.4 billion in 2000 to $18.2 billion in 2001. Subsequently, the overall industry revenue eroded further to $17.9 billion in 2002; an amount that is minimally higher than $17.7 billion which is the overall revenue for the year 1999. In 2003, the industry experienced a barely noticeable increase which brought profit to $18.2 billion. As a result of the economic downturn in recent years, some of the smaller players that were highly dependent on the airline industry have done a great deal of strategy realignments as a way of preparing their companies to cope with eventual economic adversities that may surround the industry. For the year 2004, on the other hand, the economic situation of most firms have gradually improved throughout the industry since most rental agencies have returned far greater profits relative to the anterior years. For instance, Enterprise realized revenues of $7.4 billion; Hertz returned revenues of $5.2 billion and Avis with $2.9 billion in revenue for the fiscal year of 2004. According to industry analysts, the rental car industry is expected to experience steady growth of 2.6 percent in revenue over the next several years which translates into an increase in profit.
Competitive Rivalry Among Sellers
There are many factors that drive competition within the car rental industry. Over the past few years, broadening fleet sizes and increasing profitability has been the focus of most companies within the car rental industry. Enterprise, Hertz and Avis among the leaders have been growing both in sales and fleet sizes. In addition, competition intensifies as firms are constantly trying to improve their current conditions and offer more to consumers. Enterprise has nearly doubled its fleet size since 1993 to approximately 600,000 cars today. Because the industry operates on such narrow profit margins, price competition is not a factor; however, most companies are actively involved in creating values and providing a range of amenities from technological gadgets to even free rental to satisfy customers. Hertz, for example, integrates its Never-Lost GPS system within its cars. Enterprise, on the other hand, uses sophisticated yield management software to manage its fleets.
Finally, Avis uses its OnStar and Skynet system to better serve the consumer base and offers free weekend rental if a customer rents a car for five consecutive days Moreover, the consumer base of the rental car industry has relatively low to no switching cost. Conversely, rental agencies face high fixed operating costs including property rental, insurance and maintenance. Consequently, rental agencies are sensitively pricing there rental cars just to recover operating costs and adequately meet their customers demands. Furthermore, because the industry experienced slow growth in recent years due to economic stagnation that resulted in a massive decline in both corporate travel and the leisure sector, most companies including the industry leaders are aggressively trying to reposition their firms by gradually lessening the dependency level on the airline industry and regaining their footing in the leisure competitive arena.
The Potential Entry of new Competitors
Entering the car rental industry puts new comers at a serious disadvantage. Over the past few years following the economic downturn of 2001, most major rental companies have started increasing their market shares in the vacation sector of the industry as a way of insuring stability and lowering the level of dependency between the airline and the car rental industry. While this trend has engendered long term success for the existing firms, it has heightened the competitive landscape for new comers. Because of the severity of competition, existing firms such as Enterprise, Hertz and Avis carefully monitor their competitive radars to anticipate Sharpe retaliatory strikes against new entrants. Another barrier to entry is created because of the saturation level of the industry.
For example, Enterprise has taken the first mover advantage with its 6000 facilities by saturating the leisure segment thereby placing not only high restrictions on the most common distribution channels, but also high resource requirements for new firms. Today, Enterprise has a rental location within 15 miles of 90 percent of the US population. Because of the network of dealers Enterprise has established around the nation, it has become relatively stable, more recession proof and most importantly, less reliant on the airline industry compared to its competitors. Hertz, on the other hand, is utilizing the full spectrum of its 7200 stores to secure its position in the marketplace. Basically, the emergence of most of the industry leaders into the leisure market not only drives rivalry, but also it varies directly with the level of complexity of entering the car rental industry.
The Threat of Substitute
There are many substitutes available for the car rental industry. From a technological standpoint, renting a car to go the distance for a meeting is a less attractive alternative as opposed to video conferencing, virtual teams and collaboration software with which a company can immediately setup a meeting with its employees from anywhere around the world at a cheaper cost. In addition, there are other alternatives including taking a cab which is a satisfactory substitute relative to quality and switching cost, but it may not be as attractively priced as a rental car for the course of a day or more. While public transportation is the most cost efficient of the alternatives, it is more costly in terms of the process and time it takes to reach one’s destination. Finally, because flying offers convenience, speed and performance, it is a very enticing substitute; however, it is an unattractive alternative in terms of price relative to renting a car. On the business segment, car rental agencies have more protection against substitutes since many companies have implemented travel policies that establish the parameters of when renting a car or using a substitute is the best course of action.
According to Tracy Esch, an Advantage director of marketing operations, her company rents cars up to a 200-mile trip before considering an alternative. Basically, the threat of substitute is reasonably low in the car rental industry since the effects the substitute products have do not pose a significant threat of profit erosion throughout the industry.
The Bargaining Power of Suppliers
Supplier power is low in the car rental industry. Because of the availability of substitutes and the level of competition, suppliers do not have a great deal of influence in the terms and conditions of supplying the rental cars. Because the rental cars are usually purchased in bulk, rental car agents have significant influence over the terms of the sale since they possess the ability to play one supplier against another to lower the sales price. Another factor that reduces supplier power is the absence of switching cost. That is, buyers are not affected from purchasing from one supplier over another and most importantly, changing to different supplier’s products is barely noticeable and does not affect consumer’s rental choices.
The Bargaining Power of Buyers
While the leisure sector has little or no power, the business segment possesses a significant amount of influence in the car rental industry. An interesting trend that is currently underway throughout the industry is forcing car rental companies to adapt to the needs of corporate travelers. This trend significantly reduces supplier power or the rental firms’ power and increases corporate buyer power since the business segment is excruciatingly price sensitive, well informed about the industry’s price structure, purchase in larger quantities and they use the internet to force lower prices. Vacation buyers, on the other hand, have less influence over the rental terms. Because vacationers are usually less price sensitive, purchase in lesser amounts or purchase more infrequently, they have weak bargaining power.
Five Forces
Today the car rental industry is facing a completely different environment than it did five years ago. Competitively speaking, the revolution of the five forces around the car rental industry exerts some strong economic pressure that has significantly tarnished the competitive attractiveness of the industry. As a result of the economic downturn in recent years, many companies went under namely Budget and the Vanguard Group because their business infrastructure succumbed to the untenability of the competitive environment. Today, very few firms including Enterprise, Hertz and Avis return a slightly above-average revenue compared to the rest of the industry. Realistically speaking, the car rental sector is not a very attractive industry because of the level of competition, the barriers to entry and the competitive pressure from the substitute firms.
Strategic Group Mapping
As a moderately concentrated sector, there is a clear hierarchy in the car rental industry. From an economic standpoint, disparities exist from a number of dimensions including revenue, fleet size and the market size each firm holds in the market place. For instance, Enterprise dominates the industry with a fleet size of approximately 600,000 vehicles along with its market size and its level of profitability. Hertz comes in second position with its number of market shares and fleet volume. In addition, Avis ranks third on the map. Avis is among one of the companies that is having issues recovering its revenue margins from prior to the economic downturn. For instance, in 2000 Avis returned revenues of approximately $4.23 billion. Over the course of the next several years following 2000, the revenue of Avis has been significantly lower than that of 2000. As a way of reducing uncertainty most companies are gradually lessening the level of dependency on the airline industry and emerging the leisure market. This trend may not be in the best interest of Hertz since its business strategy is intricately linked to the airports.
Key Success Factors
There are many key success factors that drive profitability throughout the car rental industry. Capacity utilization is one of the factors that determines success in the industry. Because rental firms experience loss of revenue when there are either too few or too many cars sitting in their lots, it is of paramount importance to efficiently manage the fleets. This success factor represents a big strength for the industry since it lowers if not completely eliminates the possibly of running short on rental cars. Efficient distribution is another factor that keeps the industry profitable. Despite the positive relationship between fleet sizes and the level of profitability, firms are constantly growing their fleet sizes because of the competitive forces that surround the industry. In addition, convenience is one of the crucial attributes by which consumers select rental firms. That is, car rental consumers are more prone to renting cars from firms that have convenient rental and drop off locations. Another key success factor that is common among competing firms is the integration of technology in their business processes. Through technology, for instance, the car rental companies create ways to meet consumer demand by making renting a car a very agreeable ordeal by adding the convenience of online rental among other alternatives. Furthermore, firms have integrated navigation systems along with roadside assistance to offer customers the piece of mind when renting cars.
Industry Attractiveness
There are many factors that impact the attractiveness of the car rental industry. Because the industry is moderately concentrated, it puts new market entrants at a disadvantage. That is, its low concentration represents a natural barrier to entering the industry as it allows existing firm to anticipate sharp retaliations against new entrants. Because of the risks associated with entering the industry among other factors, it is not a very attractive sector of the marketplace. From a competitive standpoint, the leisure market is 90 percent saturated because of the active efforts of Enterprise to dominate this sector of the market. On the other hand, the airport terminals are heavily guarded by Hertz. Realistically speaking, entry in the industry offers low profitability relative to the costs and risks associated. For most consumers, the main determining factors of choosing one company over another are price and convenience. Because of this reason, rental firms are very circumspect about setting their rates and that generally force even the industry major players in the position of offering more to the consumers for less just to remain competitive. Hertz, for example, offers wireless internet to its customers just to add more convenience to their travel plans. Avis on the other hand, offers free weekend specials if a customer rents a car for five consecutive weekdays. Based on the impact of the five forces, the car rental sector is not a very attractive industry to potential new market entrants.
Conclusion
The rental car industry is in a state of recovery. Although it may seem like the industry is performing well financially, it is nonetheless gradually regaining its footing relative to its actual economic position within the last five years. As a way of insuring profitability, besides seeking market shares and stability, most companies throughout the chain have a common goal that deals with lowering the level of dependency on the airline industry and moving toward the leisure segment. This state of motion has engendered some fierce competition among industry competitors as they attempt to defend their market shares. From a futuristic perspective, the better days of the car rental industry have yet to come. As the level of profitability increases, I believe that most of the industry leaders including Enterprise, Hertz and Avis will be bounded by the economic and competitive barriers of mobility of their strategic groups and new comers will have a better chance of infiltrating and realizing success in the car rental industry.
Sources
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Rental car foes war on each other’s turf.” The Associate Press. Fall 2004. The Enquirer. 08 March 2005. http://www.enquirer.com/editions/2004/10/11/biz_rentalcars111.html.
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“Tracy Esch.” “Car rental market leaders make rebound .” Business Travel News. May 2002. Gale. 12 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
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“Car Rental In the United States.” Data Monitor Industry Market Research. Nov. 2004 . Gale. 13 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
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“Car rental market leaders make rebound.” Business Travel News. May. 2002 . Gale. 14 March 2005. http://search.rdsinc.com.ucfproxy.fcla.edu.
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20 Business Telephone Etiquette Tips
Today’s technology has many advantages and a great many disadvantages. I often wonder how our society survived without a mobile telephone. I wonder how I survived without the Internet. I was connected when Prodigy was first introduced on the scene. The pharmaceutical company for which I worked provided a laptop to help me manage my territory or I may have not been so well connected.
One disadvantage of a mobile telephone is the lack of telephone etiquette. People seem to have no manners when talking on their phones. Personally, I do not care to hear another person’s conversation. If I’m having dinner alone in a restaurant, I believe I am having more fun than a family whose parent (usually the Father) is interrupted by a call and does not tell the caller about the personal family time he’s having but continues to talk on the phone. Of course, it’s not my business. I have no idea the understanding that exists between those family members. I do know the call is about business because people tend to talk extremely loud when talking on their mobile phones. That really annoys me.
I have addressed my leisure time away from the workplace where I have observed others and their inconsideration to the general public. At the workplace, impoliteness and rudeness to others when on the phone or not, is totally unacceptable from employees. Since I am a trainer and consultant, I find it extremely difficult minding my own business when I hear conversations employees have with customers, clients or patients. I think of the many opportunities I have to offer assistance to the companies who have not made the connection between untrained employees in the area of proper telephone etiquette (or any area if the employee is untrained) and lower profits. Every connection an employee has with a customer, patient, client (or potential one) is vital to the profits of any company. I therefore offer to you, 20 Telephone Etiquette for Businesses Tips. I’m aware many of these tips are common sense yet I’m also aware common sense is not very common, oftentimes. This list was initially written for dental and medical healthcare professionals but is applicable to any business.
Make sure you speak clearly and are smiling as you answer the phone; also identify yourself.
Before placing a caller on hold, ask their permission first and thank them.
It is better to return a call than to keep someone on hold too long. If the phone rings back to you, you’ve kept them on hold too long.
Do not forget to return the call as you promised.
Do not permit the phone to ring into the office more than three times.
Always use a pleasant, congenial and friendly tone.
Never interrupt the person while he/she is talking to you.
Never engage in an argument with a caller.
Do not handle an unhappy caller’s concern openly at the checkin-checkout desk.
Do not make it a habit of receiving personal calls at work.
Do not answer the phone if you are eating or chewing gum.
Do not give the impression that you are rushed. It is better to return the call when you can give the person the time they need to handle the reason for their call.
Learn how to handle several callers simultaneously with ease and grace.
Return calls promptly that have been left on voice mail and ansafones.
Always get the best number (and an alternate) and the best time to have a call returned to the caller, especially if a manager or another team member must return the call.
Do not ever leave a message with someone else or on an ansafone or voice mail regarding details of a delinquent account. Instead, leave a message asking the person to call the “Accounting Department.”
Always make collection calls in private and away from the patient flow or public areas.
If possible, provide a telephone for patients/customers/clients to use. An area providing privacy is preferred.
Do not call a patient, customer or client’s home before 8:00AM or after 9:00PM, unless they’ve given you permission to do so.
When hanging up the phone, make sure the caller or person called hangs up first if the phone is slammed on the receiver. Otherwise, always hang up the phone, gently. I recommend a remote, handless headset for the business staff. They are wonderful. This will solve hanging up as you push release on the headset to hang up the phone. Also, it does not tie your staff to their desk. The team member checking on insurance really appreciates this device. (The phone can also be answered if away from your desk.)
Contact me if you’d like to know the make and model of the remote, handless headset recommended. I am not asserting this list answers (no pun intended) all of the issues surrounding excellent telephone skills but it’s a very good start. If a tip does not apply to you or your business, I commend you. If even one does, I encourage you to begin immediately to eliminate it.
Economic Status of the United States in 1950
Introduction
Emerging victorious from World War II five years earlier, the United States in 1950 was reaping the benefits of a growing economy – benefits that were actually derived out of the country’s participation in the War. The destruction and mayhem brought by the global conflict also brought with it several positive contributions to the economy. Some would even argue that the country’s participation in World War II actually saved it from the Great Depression.
To understand the economic boom of the 1950s it is necessary to appreciate the positive impacts that were borne out of World War II. The foundation for the economic expansion and growth experienced in 1950 and several years after that were laid during World War II.
To fund and support the country’s war time efforts, it had to recruit millions of American soldiers to be sent to the war front as well as to be stationed at home. Factories had to be built to produce war materiel – guns and ammunitions, military transport, tanks, fighter planes and bombers, etc. To man the factories women and older people had to be recruited as most of the able-bodied men were at war. WWII created jobs and gave life to many industries and energized a nation. Among the industries that prospered during and immediately after the war were the newspaper industry, the agriculture industry and even Hollywood. Industries that produced transport and plant machineries also prospered. Throughout the War, women, for the first time, were given the opportunity to work outside their homes and participate in nation building. The participation of the women in the labor force started to increase during this time.
The War also provided opportunities that would later be manifested in the 1950s. Take for example many of America’s products went overseas – introducing themselves to new markets.
Many had actually feared that the end of the War would lead the country back to depression. With production of military supplies coming to an end, this fear had its basis – for the entire economy was propped up by all that had to do with the global conflict.
Fortunately, this was not the case. The victory relished by the nation brought about confidence in the government and the economy. The common consumer best exhibited this confidence as the strong consumer demand spurred economic growth after the War.
Leading towards the 1950s, industries that experienced a surge in growth included the automobile industry and the housing industry, and new industries experienced fantastic births – industries such as aviation and electronics.
There was also another outcome of WWII that contributed to post War growth – the Cold War between U.S. and the U.S.S.R.
Many of the military industries that sprouted during the war continued to do big business after it. As communist block emerged as a military power in Europe, America had to arm itself against what it considered as a threat. Huge investments were made in the defense of the country. Such investments meant jobs, factories, huge spending – all contributed to the boom of the 1950s.
The economic success of the country probably influenced its leaders to advocate the replication of an open economy at the international level. This is best evidenced by the country’s spearheading the establishment of the International Monetary Fund and the World Bank.
Gross Domestic Product and Per Capita GDP
In 1950, the country’s GDP was at $293.8 Billion (in current dollars). At that time, Per Capita GDP was $9,573.00 – making the United States the number one country world wide in this aspect. By 1996, GDP was at $13.194 Trillion. Per Capita GDP was at $43,800.00 – however, the country ranked only at 10th place world wide in this respect.
Post World War II scenario showed that too few economies survive the war while a great majority, especially in Europe, was greatly affected. Many developments starting in the late 1970s toward the early 2000s enabled other countries to overtake the U.S. in terms of Per Capita GDP.
As Per Capita GDP is influenced by population, countries that had significant economic growth coupled with low birth rate were able to surpass the U.S. in this indicator. However, the U.S. remains the most powerful economy in 2007 taking into consideration other indicators.
Employment and Unemployment
In 1950, the civilian labor force was about 58 million strong. Only 5.3 percent of the labor force was unemployed. 41.6 million of the labor force at that time were males, while only 17.34 million were females. By 1996, the labor force grew to about 142 million while unemployment rate as at 5 percent. 76 million were males while 66 million were females in the labor force. In the 1950s, the number of workers in the services sector caught up with workers in goods production industries. The same time also saw the rise of white-collar jobs and the strengthening of labor unions. Awareness on labor rights was on a rise. The biggest impact experienced by the labor force was the increase in women’s participation in employment activities. Accordingly, women have literally poured into the labor force starting in 1950. By 1990, women’s participation in the labor force would nearly double. On the other hand, men’s participation would drop over time.
Per Capita Personal Income
In 1950 the Per Capita Personal Income was pegged at $1,501.00. By 2006 this rose to about $36,600.00. Though marked by huge difference in amount, it can be noted that $1,501.00 in 1950 could by more goods and services than the $36,600 in 2006 as illustrated by the CPI rates for both years.
Consumer Price Index and Inflation
With 1967 as base year, CPI in 1950 was registered at 72.1 – meaning that a basket of goods and services bought in 1950 were 72.1 percent of the price of the same goods and services bought in 1967. By 2006, the CPI was at 603.5. This meant that the same basket of goods and services bought in 1967 would cost 603.5 percent more in 2006. Inflation rate in 1950 was at a steady 1.09 percent. In 2006 the rate was at 3.24 percent.
Emerging Industries
1950 saw the emergence of new industries that were anchored on new technologies. Among these is the aerospace industry. The great success of the heavy bombers during the war emphasized importance on innovation. Improvements in engine design, metallurgy, and arms technology helped advance the industry as well as improve manufacturing procedures.
The onset of the Cold War ensured that the industry was there to stay. At its peak, the industry hired hundreds of thousands of workers in four major factories. The industry was also fueled by a $3 billion government spending.
Other industries that grew during this time were boosted by other industries. Take for instance the housing boom experienced after war. New homes meant additional furniture and appliances as well as new cars. The consumer-led growth likewise spread to other areas. The introduction of television to the masses spurred the growth in electronics.
There were also after effects in the growth of industries. As the demand for homes and cars increased, many Americans were lured out of central cities to the suburbs. The construction of better highways also contributed to these phenomena.
Farmers though were facing tough times. As people left farm lands, lesser people were left behind to do farm work. This led to a drop in the productivity of the farm sector.
Innovations and the Transformation of Business
At a personal level, 1950 saw the introduction of the first hand held T.V. remote control – a device that would be seen as a necessity in many households for years to come. Color TV also emerged thru the issuance of a license to CBS Network. Another innovation is the introduction of the first credit card – Diners – also an item that would come across as a necessity in modern times.
The first pagers were also developed in 1950.
In the business front, 1950 would usher in an era marked by consolidation of large companies. Businesses would combine to create bigger, greater businesses. Example, International Telephone and Telegraph bought Sheraton Hotels, Continental Banking, Hartford Fire Insurance, Avis Rent-a-Car, and other companies.
Notable Events and Personalities
Notable events of 1950 included the following:
Start of the Korean War – influenced greatly by the U.S. and USSR at opposite sides, North and South Korea would tangle in a three-year war that highlighted the tension during Cold War regime.
Development of the Hydrogen Bomb – raged by the atomic bomb testing by USSR, the government pursued the development of a hydrogen bomb.
Senator Joseph McCarthy – started the Red Scare in halls of the U.S. Senate – making accusations that the State Department was filled with Communists or their sympathizers. The Senator’s actions led to the adoption of the term McCarthyism – describing intense anti-Communists sentiments.
This period coincided with and fueled the onset of the Cold War between America and the USSR. Thousands of Americans were accused of being Communists or sympathizers during this time – Americans in various sectors of the society. History would later judge these accusations as reckless and baseless. While Senator McCarthy gained considerable media mileage at the start of his “campaigns,” he would be later unmasked as a grandstanding antic who had little or no evidence to back up his accusations. Many of the people Senator McCarthy accused suffered greatly. Many loss their jobs, had their careers ruined while some were even unjustly imprisoned.
Conclusion
The end of World War II led to the end of the Great Depression and the start of a long period of economic expansion through the 1950s. It is quite ironical that the most destructive war in history would contribute to the emergence of the strongest and biggest economy in the world. The confidence on the economy was obviously brought about by the country’s victory in the War. Tempered by strong collaboration between the government, businesses and the consumers, the U.S. emerged from the War a lot stronger and economically strengthened. Industrial expansion during wartime brought economic impetus that would be carried on even after WWII. The fact that most of the major economies were slow to recover from the after effects of the conflict placed the United States at absolute and relative advantage over both its allies and its enemies.
Acai Berry – How I Lost 30 Pounds in Under 30 Days Using The Acai Berry
There was a time when I was grossly overweight. At that time, I had no clue about the acai berry. I was fat, ugly, sloppy and laden with a negative attitude. This is when I saw Dr. Oz explaining about the acai berry on CNN. I was impressed and decided to try the acai berry myself. This is what it did to me.
It Was Easy To Follow
The biggest advantage of opting for this program was that it was simple and straightforward and I never had to beat around the bush to get there. All I had to do was to choose the site of my choice, place an order and get started-it was that simple. So, I had no hesitation on staring off with this product.
It Was Completely Natural
The second advantage of following this program was that it was completely natural. While most weight loss programs are infected with some or other kinds of chemicals, this is one method which has been proven completely natural and free from any harmful side effects.
It Worked From Day one
The moment I started to use this miracle formula, I was certain that it was going to work for me. This is so as it started to show results from day ONE. By the end of the month, I had lost a mind blowing 29.80 pounds. It was unbelievable and it took a while for the news to sink in. I even tried different weighing scales to cross check and was happy with the results.
What Does "High Maintenance" Really Mean?
We hear this term “High Maintenance” quite frequently used as an adjective to describe Women. Men say, “She was/is high maintenance.” What does it mean to you? Do you consider yourself HIGH Maintenance? Do you think being HIGH maintenance is wrong?
High Maintenance to me isn’t a financial issue, exclusively or about a woman being demanding. Although being high maintenance requires the means by which a woman’s needs, wants, desires and pleasures can be given to her. There should be perks for “staying the course.” Many [women] have stayed the course and can enjoy the perks that come with working hard and smart. I do not particularly like when the phrase “high maintenance” is used for a person. I think it works perfectly well for certain vehicles, and other things such as hardwood floors, 100% linen and silk outfits, or even a long and thick head of hair. It works for things that require more attention than their alternatives, perhaps.
I am aware some women require more ‘upkeep’ than others but it’s their choice and lifestyle. One woman may not care about makeup, manicures, pedicures, massages, highlights in her hair, fine jewelry, luxurious suites at their vacation destination, or being catered to and pampered. Another woman may seek out this treatment because it enables her to thrive and flourish. Would the latter type of woman be considered “High Maintenance?”
What I think is wrong is when a woman demands these things from someone when she isn’t capable of providing them for herself. Or when she forces a man to go into debt just to maintain a facade, which isn’t affordable for either of them. A man complying with such demands need to reassess his involvement with this type of woman and bid her farewell.
Read what a young man of 26, whom I’ll call Michael, thinks High Maintenance women are when he was asked the question.
“High maintenance women, from my personal definition means:
1. Needs lots of time
2. Needs lots of effort
3. Are very fussy and particular
4. Are difficult and troublesome
5. Are annoying
6. Have high expectations of her partner or date
7. Will be quick to reject a person if those expectations are not met
8. Hard to please, not easily impressed
9. Takes forever to get ready
10. Something all but the most patient and tolerant men should avoid like the plague.”
And a gentleman of 68, whom I’ll call George, describes a High Maintenance woman as follows:
“High Maintenance includes many things. She selects a restaurant because of she’s heard VIPs go there not because of great food and service. Another High Maintenance definition is she’s very demanding with little consideration of what the guy enjoys so the time together becomes high maintenance (wasted). The rental car must be impressive and so many other things.”
To be fair, here are two quotes from women who are 47 and 50 years of age, respectively:
“High maintenance here in Australia is really the term used to describe women being highly groomed which includes nail polish, good make up, classical/business clothes, etc. on a daily basis.” –Jeni
“Funny, I thought getting your nails done and your hair done and looking nice and acting appropriately was just part of being a woman/girl. Since when did the maintaining the aspects of our sex become high maintenance?” –Cheryl
And finally, a 50 year old, whom I’ll call Sharon, made this contribution to the question.
1. If your purse holds more than 5 lbs of ESSENTIALS . . .
2. If you own more than 50 pairs of shoes . . .
3. If your make-up case is a double-decker toolbox from Sears . . .
4. If a small family could live in your closet . . .
5. If more than 3 items in your closet still have price tags . . .
6. If your jewelry box used to be a high-boy chest . . .
7. If you have more underwear than you can wear in 3 months . . .
8. If a weekend trip takes more than 1 piece of luggage . . .
9. If you spend more on hair products than groceries . . .
10. If your dry-cleaning bill is more than your car payment . . .
11. If you have a weekly Botox appointment . . .
12. If you’re still making payments on your last plastic surgery . . .
You may be High Maintenance!
I am guilty of four of the twelve (#2, #5, #7 & #8); therefore, if Sharon is correct, I am High Maintenance! Pffft! I don’t think so! I, admittedly, require more ‘attention’ than I used to. I am older. I deserve it. I have earned it. I also give as good or greater than I get. I never want to feel obligated to anyone or for anyone to feel taken advantage of by me. If I am over-indulgent with myself, you can count on me being over-indulgent with you. I maintain myself. I’m blessed and highly favoured! Because I’m blessed– I must be a blessing.
Are you High Maintenance? The phrase is not restricted to describe only women. Men have been deemed and a few I know, as High Maintenance. I just think people have different requirements, likes and dislikes. I hope Michael and George aren’t entirely correct!
Copyright © 2007 Avis Ward of AWard Consulting, LLC
Can You Rent a Car For Someone Else?
The basic answer is no.
You can reserve a car for someone else and you can rent a car and let someone else drive it, but you can’t rent it for them.
Car Rental companies require that the person picking up the rental car show a valid drivers license and credit card in their own name. This is extremely important.
There was an article in the news recently about a father who reserved a car online for his daughter because she was unfamiliar with making travel arrangements. He chose a prepaid booking site and booked the car in her name with his credit card number, thinking she would just pay him back.
Unfortunately the car rental company would not honor her reservation and she ended up having to rent another car at a higher price. Meanwhile the other reservation had been paid for and no refund was given. The father was understandably upset and felt that the booking site or the car rental company should have a) honored the reservation and/or b) refunded his money.
I assume that this gentleman did not read the terms and conditions on the website where he booked the reservation.
It stated that the credit card used to book the reservation must be the same credit card shown to the rental counter at the time of pick up. Most of the prepaid booking sites have this stipulation listed as well as a condition that all reservations booked are non-modifiable, non-cancellable and non-refundable.
The last I heard was that the booking site refused to refund his money and the car rental agency
offered him a small credit, but not the amount of the reservation he had made.
Many people assume that they can rent the car and let someone else drive it and that because they never drove it, they were not responsible for the vehicle. Not true. The renter of any rental car is considered the primary driver, even if they never drive the vehicle. Anyone else who drives is considered an additional driver and must have the permission of both the renter and the car rental company to drive the vehicle.
For more car rental tips visit my website below:
Visa Vs MasterCard – Which is the Best?
The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.
In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.
However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.
How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of Scotland will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of Scotland’s MasterCard.
What this means for the vast majority of customers is that you do not have to overly concern yourself with whether a credit card is MasterCard or Visa. You would be better off concentrating on the interest and other charges on the card, the balance transfer possibilities or their reward scheme. You are very unlikely to ever be effected by the fact that it is one and not the other.
If you prefer, if you are going to have two credit cards, you may decide that you want one of them to be Visa and the other MasterCard, this means that if something drastic were to happen to one company, or if you were in the unlikely position of finding a location that accepts one but not the other, then you would have the option of paying with either.
At the end of the day however, much more depends on the bank that gave you the card, than on the type of card it is.
How To Stop Your Air Conditioner From Freezing Up
Scenario:
My air conditioner is freezing up almost daily. I’ve tried resetting the temperature and nothing seems to work. What would you suggest I to to stop my air conditioner from freezing?
Solution:
There are several factors that could be the cause. The four main reasons for air conditioner freeze ups:
Refrigerant charge
Outdoor temperature
Insufficient air flow
Defective blower
You may have a low refrigerant charge which can cause the air conditioner to freeze up. The system needs to be charged correctly to enable it to work properly. You may have a leak in the refrigerant lines.
If the lines have been vibrating or rubbing other parts or objects the friction could cause a leak. In addition if there are loose fittings or weak solder joints it could be leaking from those areas. If you’ve determined the refrigerant lines are not leaking than it may just need to be recharged. If you don’t know how to recharge it you may need to contact a service technician.
In temperatures under 60 degrees outdoor air conditioning units tend not to function as well. When the temperature drops the system begins to not function properly and freeze ups can occur. The simplest method is to not use your unit when the temperature cools down and open your windows or doors. If that’s not a option you will probably need to have a ambient temperature control installed in your system.
The evaporator coils will become dirty over time. A dirty filter restricts the air flow making it lose air flow and eventually it becomes so slow that it freezes up, or at best, not cooling as well as it should. This results in dirty coils that will need to be cleaned. Depending on your air conditioner you may have to remove the coils to clean them. You should replace the AC filter yearly. For central air conditioning units another problem that occurs is when you have duct work that is undersized causing the unit to freeze up. If you feel that may be the problem you’ll need to consult a professional. Try replacing the filter first and it may do the trick.
Air conditioner freeze ups can occur when the blower is not running at the required speed and may need to be replaced.
These are the main reasons why air conditioners freeze up. If you’re lucky it may just be a dirty filter which you should be able to replace yourself.
10 Rules to Follow When Renting a Car Online
The world has really gone cyber one can fly, find a date, buy a house, make arrangements to move and rent car online, great conveniences at the click of a button. As a consumer you must find out all the pros and cons of renting a car and carry out “comparison” shopping.
1. Visit company websites to determine what is on offer. Look for competitive rates and great facilities.
2. Try and locate a rental company close to where you intend to use the car it will save you money.
3. Before you proceed list your needs: what kind of car, how many people will travel, how many days you need the car and so on.
4. Use a reputed agency and call on their toll free number. Be sure to read all the terms and conditions carefully. Make sure you use a safe payment gateway and that you receive a confirmation e-mail. Some well known companies are Hertz (https://www.hertz.com), Dollar, Alamo, and Avis (http://www.avis.com). Or, try travel sites many have great offers for clients who book hotels, air tickets, as well as cars.
5. Ask for packages and find out when rates are cheaper.
6. Be sure to ask for an agreement.
7. Ask about the age of the car, its condition, and how many miles it has been driven. If you expect to drive in bad weather be sure to check about tires, snow chains, and other equipment.
8. To rent a car online keep handy your driver’s license, passport, photo-ID, and proof of address. Ask about travel insurance and whether the car has a current insurance.
9. Check the charges carefully and whether any additional payment will be charged for drop off and pick up.
10. Check whether your driver’s licence is valid for the state/ country you wish to drive in or whether you need to obtain a new license.
It is a competitive world and online there are company’s like Fox Rent a Car http://www.foxrentacar.com that offer discounts, reward points, coupons, hotel discounts and more. Check as many sites as you can to get a great deal. Popular companies are: Yahoo travels, priceline.com, and Travelocity. Be a discerning consumer and hire a great car at a great price. Many car rental companies offer special rates if you are a member of one of their affiliate clubs or professional organizations.
Before you drive away in the rental car find out as much as possible about traffic rules, laws where you intend to drive, and safety norms. If your family is with you then choose a safe and comfortable car that will accommodate luggage, boisterous kids, and pets. If you intend to drive alone then you could opt for a compact car. Gauge your needs before you make a choice and carry your driver’s license and insurance papers with you at all times. As a precaution inform a friend, family member, or the office of your travel plans. Cary a mobile phone for emergencies or arrange to call in at specific times. Enjoy your rent-a-car experience.
Saving Money with Car Rental Company Discount Codes
Car rental companies often use promotions and discount codes to drive business. These discounts have created their own subculture on the Internet. Many travel sites openly discuss and share discount codes with other travelers in the hopes of making the travel experience more affordable to all.
Pretty much every employer that boasts more than 100 employees usually has some sort of discount they can apply for or has already. So if you work for any Government Agency, Big box retailer, fast food chain, tech company, sales company, manufacturer, or even janitorial company, its likely you qualify for a discount of some sort. Not only do some of these company codes offer discounts on price, some of them offer additional services as well.
Some of the largest companies have negotiated other “perks” into their price. Rental Car Companies like Hertz and Avis cater directly to Businesses and often against each other for the same company. In exchange for signing multi-year guaranteed business deals with some of these corporations, Rental car companies will offer things like free tank of gas, free insurance, no one way fees, or even free upgrades into the Corporate Discount contract. Often if you are an employee with these companies, even if you were just hired and your job duties do not require travel, you qualify just by showing your work badge.
While using some of these codes without proper credentials can cause you to violate some of the car rental agreement, others are openly offered to any person who qualifies with as little as having membership in a particular club or organization. Costco, Sam’s Club, G.E.I.C.O., Citibank Credit cards, Even buying the Entertainment Book can lead to some tantalizing coupons in addition to Corporate discounts in some instances. Known coupons include free tank of gas, free weekend day, dollar off weekly rentals, free upgrades in car class.
Simply ask your rental company before you begin your travel planning to determine exactly what kind of discount could be available to you. Once you have found a few discount codes that you can use, try obtaining quotes under each qualifying rate. Discount percentages will vary even with the same code depending on type of car, day of week, city, and time of year. Due diligence is a great thing when it comes to searching for travel. An hour plugging in discount codes for car rental companies (even for hotels) could save you hundreds, or even thousands depending on how long the trip is and how many people/vehicles are involved.
Remember that the more effort you put into this search, the more likely you will be to finding a rate that not only works for you on one particular trip, but for all your trips.