Oligopoly brief: Cendant
Cendant is becoming a dominant force in the travel industry in the US and in Europe. Cendant is a name made up in 1998, a modish name with the "-ant" or "-ent" ending typical of that era (Viant, Scient, Versient). It was originally named HFS Inc. Curiously HFS once owned, spun the company off, then Cendant brought it back in 2002.
During the 1990s Cendant grew rapidly through acquisitions in key travel and property areas. It skirmishes its risk by being a major franchisor.
The Cendant empire is a major player in a number of areas. It is the largest hotel/motel franchisor in the world. It has 6,400 locations under such names as Days Inn, Super 8, Ramada, Travelodge, and others. In addition, the company owns Avis and Budget auto rental companies (together 3,800 locations across the world) It has a major online travel presence (to be expanded greatly by the planned acquisition of Orbitz), and is big in renting vacation homes and selling timeshares.
The motel business keeps growing. The company often has several of its motels in the same location, offer slight perceived differences, a true case of pseudo-variety. The company is branching up, with a recent acquisition of the US hotels in the Ramada hotel chain and an announcement it will acquire international rights from Marriott. Ramada's hotels are a step up from motels, so they fit well within corporate strategy. The company is also planning to expand its motel chains in the UK, Scandinavia, and through Europe. The Super 8 chain is planning to open 50 motels in China by 2009.
It is big in the auto rental industry, with two of the biggest American auto rental companies. Internationally, its PHH Arval division is the #2 company managing and leasing vehicle fleets for major corporations (a division of GE is #1).
Cendant owns the world' first, second, and fourth largest real estate brokerage companies (Century 21, Coldwell Banker, and ERA), and its relocation service has a 52% market share. The company is still buying independent regional brokerages in the US.
Cendant is also expanding into marketing consulting and tax preparation, where it is #2 after HR Block in the US. But basically it has stuck to three areas of core competency where it is one of the leaders,
Cendant is under some, stress due to fraudulent accounting scandals, with some former employees having been indicted and some shareholders suing the company. The company has an excellent cash flow and is likely to weather the storm.
| Division |
Business |
Notes |
| Avis |
Auto rental |
#2 in world |
| Budget |
Auto rental |
#4 in US |
| First Fleet |
Corporate fleet management and leasing |
US |
|
| PHH Arval |
Corporate fleet management and leasing |
#2 worldwide |
|
| Wright Express |
Fleet management credit cards |
US |
|
| Century 21 |
Real estate brokerage |
#1 in world, 6,800 franchise offices in 38 countries |
| Coldwell Banker |
Real estate brokerage |
#2 worldwide, 3,600 franchise offices in the US |
| ERA |
Real estate brokerage |
#4 worldwide, 2,600 offices in 28 countries |
| Sotheby's International Realty |
Real estate brokerage |
focus on luxury homes worldwide; 15 offices, 155 affiliates |
| NRT |
Real estate brokerage |
US |
| Cendant Mortgage |
mortgage loans |
#6 mortgage lender in US |
| Equity Title Company |
title and escrow services |
California |
| Amerihost Inn |
motel franchise |
100 in the US |
| Days Inn |
motel franchise |
500 in 19 countries, mainly in US |
| Howard Johnson |
hotel and motel franchise |
500 in 19 countries, mainly in US |
| Knights Inn |
motel franchise |
175 in US and Canada |
| Ramada |
hotel franchise |
800 in US and Canada/td> |
| Super 8 |
motel franchise |
1,750 in US and Canada |
| Travelodge |
motel franchise |
450 in US, Canada, and Mexico |
| Wingate Inn |
motel franchise |
100 in US, Canada, and Ireland |
| Cuendet |
Vacation home rentals |
Italian villas |
| Fairfield Resorts |
Vacation home rentals |
#1 in timeshares |
| Holiday Cottages |
Vacation home rentals |
UK |
Cendant Divisions
| Holiday Network |
Vacation home rentals |
Us |
| Novasol |
Vacation home rentals |
Europe |
| Trendwest |
Vacation home rentals |
timehares |
| Welcome Holiday |
Vacation home rentals |
UK |
| Landal GreenParks |
Campgrounds |
Europe |
| Cendant Vacations |
Online travel booking |
|
| Cheaptickets.com |
Online travel booking |
|
| Hotelclub.com |
Online travel booking |
|
| Last Second Trips |
Online travel booking |
|
| Lodging.com |
Online travel booking |
|
| RCI |
Online travel booking |
|
| Restogo.com |
Online travel booking |
|
| Travel 2/Travel 4 |
Online travel booking |
UK |
| Cendant Mobility |
employee relocation services |
#1 worldwide |
| Hotel Dynamics |
Hotel Consulting |
|
| THOR |
Hotel supplies and consulting |
|
|
| TRUST International |
software for travel industry |
|
| WizCom |
software for travel industry |
|
| Galileo |
online booking service for travel agents |
|
| NeatTravel |
travel agent services |
US |
| Shepherd Systems Intelligence |
Consulting for travel industry |
US |
| Travelport |
corporate travel consultant |
|
| Travelwire |
travel agent services |
UK |
| CIMS |
marketing strategy consultant |
loyalty programs for banks |
| Progeny Marketing |
marketing consulting for banks |
|
| TRL Group (formerly Trilegient) |
marketing consultant |
Sets up membership services |
| Jackson Hewitt |
tax preparation |
#2 in US |
Update 10/24: I just noticed that Cendant has annoiunced it will spin off its mortgage operations and its fleet management subsidiary.
1:29:21 PM 
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