Hertz Global Holdings (HTZ Quick QuoteHTZ - Free Report) is seeing travel behavior shift in ways that can support a steadier recovery path into 2026. Pricing is stabilizing, depreciation is improving as used car values normalize, and the fleet is getting younger, which helps profitability per vehicle. The next leg hinges on executing beyond the airport, tightening unit costs, and turning vehicle sales into a more reliable cash-flow lever.

HTZ Search Traffic Spike Signals Shifting Travel Plans

On March 26, Hertz said search traffic to Hertz.com jumped 15% over the prior week as long Transportation Security Administration lines disrupted travel. The company framed the move as a sign that travelers may be weighing alternative ways, or backup plans, to reach their destination.

That same update included a telling mix signal. Hertz said one in three customers is renting specifically for road trips and driving vacations. For investors, that matters because it points to demand that is not solely tied to airport volume trends.

Hertz Road Trips and Off-Airport Growth Priorities

Road-trip demand fits the company’s strategy to grow beyond airport counters. Off-airport revenues made up 34% of worldwide vehicle rental revenues in both 2025 and 2024, giving Hertz a sizable base to build on.

Management has been explicit about where it wants incremental off-airport growth. The company is targeting insurance replacement, local commercial deals, and small business rentals as key lanes to expand. A road-trip-heavy customer mix can reinforce those efforts by widening the use cases for a rental car outside traditional flight-driven travel patterns.

HTZ Rideshare Fleet Could Drive Double-Digit Gains

Mobility is another lever management views as meaningful. Hertz describes its mobility segment, driven by a large rideshare rental fleet, as having strong double-digit revenue potential. Management also said mobility and rideshare revenues grew double digits in the latest quarter commentary.

This segment can swing with utilization and fleet availability. Recalls and severe weather have reduced utilization at times and limited the sale of some vehicles until repairs are completed. In late 2025, recalls sidelined more than 20,000 vehicles and pressured utilization, notably in rideshare, even as the situation moderated into the March quarter. As recall disruptions normalize, better fleet readiness can improve vehicle uptime, support ride-hail demand periods, and reduce inefficiencies that feed into day-to-day operating costs.

Hertz Adds INEOS Grenadier to Premium Lineup

Hertz is also leaning into mix, not just volume. On March 18, the company announced the addition of the INEOS Grenadier to its U.S. rental fleet, expanding the lineup of premium vehicles available to customers.

The company said customers can reserve the vehicle at select airport locations nationwide starting this spring.  In practice, a broader premium lineup supports a yield-oriented approach, pairing improved revenue management with a product offering designed to capture renters who want a higher-end option.

HTZ Digital Disposal Plan Meets Spring Buying Season

Vehicle sales are a key part of the earnings and cash-flow equation for rental operators, and Hertz is aiming to make this stream steadier. Management plans to grow digital car sales in 2026, increasing retail sales from about one-third currently.

Timing may help. The company flagged spring as a peak buying season, supported by higher tax refunds. Operationally, Hertz is targeting better reconditioning efficiency and higher profit per vehicle through added financing and insurance income. If execution improves, more consistent cash from vehicle sales supports the company’s aim to be roughly cash-flow neutral after the March 2026 quarter.

Hertz Watch Items for a 2026 Margin Inflection

The 2026 setup is improving, but the signal set remains specific. Pricing is central, with management expecting global pricing to rise slightly year over year in the March quarter, and revenue per transaction day improving sequentially on a year-over-year basis through 2025. Tracking the pricing and revenue per transaction day trajectory is a direct read on whether revenue execution is translating into better unit economics.

Depreciation is the other swing factor. Depreciation per unit fell to $330 per month in the fourth quarter of 2025, and management expects it to move below $300 in 2026. Investors should also monitor whether recall normalization supports utilization and frees up vehicle sales, while adjusted direct operating expense per day trends toward the low-$30s target range.

Liquidity is the final watch item. Corporate liquidity was about $1.5 billion at the end of 2025, and management expects a trough below $1 billion by the end of the second quarter of 2026, with improvement dependent on planned actions and better free cash flow after the March quarter. If liquidity bottoms as expected and improves after the March 2026 quarter, that would strengthen the case for a 2026 margin inflection.

See how the Zacks Consensus Estimate for HTZ’s earnings has been revised over the past 90 days.

Image Source: Zacks Investment Research

With HTZ carrying a Zacks Rank #3 (Hold), these operating signals can help investors gauge whether the recovery is moving from plan to proof. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

In the broader landscape, Avis Budget Group (CAR Quick QuoteCAR - Free Report) remains a close peer for pricing and fleet discipline comparisons, and it currently carries a Zacks Rank #5 (Strong Sell). Uber Technologies (UBER Quick QuoteUBER - Free Report) , a bellwether for ride-hail demand, holds a Zacks Rank #3.