Hertz Iceland

What Hertz Iceland does

Hertz Iceland, legally Bílaleiga Flugleiða ehf., is an Icelandic car rental company operating as the official franchisee of Hertz International since 1971. The company runs 11 locations across Iceland, including a desk directly inside Keflavík International Airport (KEF) — the country's primary international gateway and one of only four such in-terminal car rental positions — alongside a Reykjavík downtown branch, a Hafnarfjörður Selhella operational headquarters, and seven regional airport/urban branches covering Akureyri, Egilsstaðir, Höfn, Ísafjörður, Skagaströnd, and Bíldudalur.

The fleet is maintained under two years of age and spans economy cars, automatic sedans, 4x4 SUVs (including F-road-capable highland models), plug-in hybrids (BMW X5/X3, Range Rover/Land Rover Sport PHEV, Toyota, Kia, Mercedes), battery EVs (Tesla, VW ID.3, VW ID.4, Nissan Ariya, Kia e-Niro), and motorhomes (Fiat Benivan 160). All vehicles carry a third-party telematics tracking system used for safety, theft prevention, insurance claims, and rental compliance. Distribution is direct-to-consumer via the company's website (hertz.is), supplemented by online check-in, self-service pickup/dropoff, and GDS/travel-agent channels integrated with Hertz International's global platform.

Revenue is generated through daily and weekly vehicle rentals (Pay Now discounted or Pay Later flexible), tiered insurance and protection products (CDW, SCDW, Theft Protection, Sand & Ash, Windshield, and the MAXCover zero-excess bundle), one-way rental fees, long-term/multi-month rentals via a dedicated platform, the new per-kilometer road usage tax (effective January 2026 under Icelandic Law No. 100/2025), and ancillary fees (additional drivers, fuel/cleaning, traffic violation administration, off-road penalties). The customer base is anchored on inbound international tourists arriving at KEF, with secondary segments in long-term professional/student renters, corporate accounts, domestic travelers, and travel-trade professionals. The same parent entity also operates the Thrifty, Dollar, and Firefly Iceland brands domestically.

Name

Hertz Iceland

Legal name

Bílaleiga Flugleiða ehf.

Website

https://hertz.is

Company type

Private

Founded year

1971

Operating status

Operating

Short description

Hertz Iceland (Bílaleiga Flugleiða ehf.) is a private Icelandic car rental company operating as the Hertz International franchisee since 1971, with 11 locations including an in-terminal desk at Keflavík International Airport, serving inbound tourists, long-term renters, and corporate accounts across Iceland.

Ownership category

akta.pro rank

Product category

Car Rental Services

NAICS

Passenger Car Rental (532111), Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing (532120)

SIC

Services-Auto Rental & Leasing (No Drivers) (7510)

akta.pro primary industry

Airport Car Rental (On-Airport Concessions) (THADAAAA)

akta.pro secondary industries

Self-Drive Car Rental (THADAAAF), One-Way / Intercity Car Rental (THADAAAD), Campervan Rentals (Class B / Converted Vans) (THADAIAA), Ancillary Services & Add-Ons (GPS, Child Seats, Tolling, Fuel Plans, Roadside) (THADAAAL)

Keywords

• Car rental services
• Airport vehicle hire
• Long-term car rental
• Rental protection coverage
• Electric vehicle rental

Headquarters

HQ city

Reykjavík

HQ country

Iceland

HQ region

Europe

Offices10 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Supply Chain, Personnel, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Vehicle Rental Fees: Core revenue from daily and weekly car rentals. Rates vary seasonally - highest in peak summer months (June-August) and lowest in off-season (November-March). Includes unlimited mileage and VAT. Two payment options: Pay Now (discounted prepaid rate) or Pay Later (standard flexible rate at pickup).
2. Insurance and Protection Products: Additional revenue from optional coverage products including Collision Damage Waiver (CDW), Super CDW (SCDW), Theft Protection (TP), Sand & Ash Protection (SAAP), Windshield Protection (WP), and the MAXCover zero-excess package.
3. One-way Rental Fees: Variable fees charged when customers return vehicles to a different location than pickup. One-way rentals available across all Iceland locations.
4. Long-term/Multi-month Rentals: Flexible rental plans for extended stays targeting professionals, students, and extended travelers in Iceland. Available through dedicated website (hertzlangtimaleiga.is) and the Hafnarfjörður Selhella headquarters location.
5. Road Usage Tax Collection: As of January 2026, Hertz collects per-kilometer road usage tax from customers per Icelandic Law No. 100/2025, plus an administrative and collection fee. This is a statutory charge on actual vehicle usage separate from rental rates.
6. Additional Services and Fees: Revenue from extra driver fees, fuel service charges (when vehicle returned not full), cleaning fees, administration fees for traffic violations, and off-road driving penalties.

Pricing tiers

Go-to-market motion2 records

Distribution channels7 records

Marketing channels5 records

Core offering

Hertz Iceland rents passenger vehicles, 4x4 SUVs, campers, motorhomes, and electric cars to travelers through 11 airport and city locations, anchored by its in-terminal desk at Keflavík International Airport. Core revenue is generated from daily/weekly rental fees with unlimited mileage and basic insurance included, complemented by optional protection products, one-way rentals, long-term multi-month rentals, electric/hybrid fleet options, and a statutory per-kilometer road usage tax collection service.

Differentiator

Problem solved

Functional benefit

Products and services

• Car Rental Services in Iceland Core rental service offering a broad fleet of economy cars, SUVs, 4x4s, campers, motorhomes, electric and luxury vehicles for daily or weekly hire. Includes unlimited mileage, basic Third-Party Liability and Collision Damage Waiver insurance, VAT, and 24/7 emergency support. Available at 11 Iceland locations including the KEF arrivals-hall desk, with online booking in 8 languages and Pay Now/Pay Later options. Targeted at international tourists and domestic travelers exploring Iceland.
• MAXCover Zero-Excess Protection Package Optional all-in-one rental protection bundle that reduces the renter's damage excess to ZERO across multiple cover types including Collision Damage Waiver (CDW), Super CDW (SCDW), Theft Protection, Gravel, Sand & Ash, Tire and Windshield/Glass coverage. Marketed as 'Save 40% on Protection Package'. Designed for renters seeking maximum peace of mind against Iceland's gravel, ash, and weather-related damage risks.
• Long-Term / Multi-Month Car Rental Flexible multi-month rental plans for professionals, university students, expats, remote workers, and extended visitors needing a vehicle for weeks or months. Available through a dedicated platform (hertzlangtimaleiga.is) and operated from the Hafnarfjörður Selhella location, with options for corporate billing and lower effective daily rates on longer commitments.
• Electric and Hybrid Vehicle Rentals Dedicated electric and plug-in hybrid rental fleet including Tesla, VW ID.3, VW ID.4, Nissan Ariya, Kia e-Niro, BMW X5 PHEV, BMW X3 PHEV, Range Rover Sport PHEV and Land Rover Discovery Sport PHEV. Targeted at eco-conscious travelers and customers wanting AWD/sustainable vehicles suitable for Iceland's weather and road conditions.
• Motorhome and Camper Rentals (incl. Fiat Benivan 160) Camper and motorhome rental category including the Fiat Benivan 160 (sleeps up to 2 adults, seats 3) and the Toyota Hilux Camper (manual 4x4, sleeps 3). Suited for families and adventure travelers wanting a self-contained vehicle-and-accommodation solution for Iceland road trips.

Quantifiable outcome

• 10 consecutive years of World Travel Awards nominations and wins (2017-2026), including 'Iceland's Leading Car Rental Company' in 2017, 2019, 2020, 2021, 2022, and 2025.
• +2 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature4 records

Partnerships

Five partnerships are on record, tiered flagship, core and minor.

• Hertz InternationalflagshipChannel Partner/ Reseller/ DistributorHertz Iceland (Bílaleiga Flugleiða ehf.) operates as the official Iceland franchisee for Hertz Car Rental, owned by Hertz International. The partnership provides access to the global Hertz brand, booking platform, Gold Plus Rewards loyalty program, GDS systems, and international customer base while maintaining local operational autonomy.
• Telematics Service ProvidercoreTechnology or IntegrationThird-party telematics company providing vehicle tracking devices installed in all Hertz Iceland fleet vehicles. Trackers monitor location, speed, and usage patterns for vehicle safety, security, theft prevention, insurance claims processing, and rental agreement compliance monitoring.
• Dollar Car Rental IcelandminorChannel Partner/ Reseller/ DistributorOperated by Bílaleiga Flugleiða - same parent company that operates Hertz Iceland also manages Dollar Car Rental Iceland brand in Iceland.
• Thrifty Car Rental IcelandminorChannel Partner/ Reseller/ DistributorOperated by Bílaleiga Flugleiða - same parent company that operates Hertz Iceland also manages Thrifty Car Rental Iceland brand in Iceland.
• Firefly IcelandminorChannel Partner/ Reseller/ DistributorOperated by Bílaleiga Flugleiða - same parent company that operates Hertz Iceland also manages Firefly Iceland brand in Iceland.

Scale indicators4 records

Recent moves5 records

Expansion highlights6 records

Broad incumbents

• Enterprise Rent-A-Car: World's largest rental car company with growing international presence; a broad incumbent whose global scale, technology investments, and corporate account capabilities represent competitive pressure and a strategic benchmark.
• Hertz Corporation: Global parent brand and franchisor; while not a direct competitor within Iceland, Hertz Corporation sets brand standards, technology, and loyalty infrastructure that Hertz Iceland operates against.

Direct peers

• Sixt Rent A Car Iceland: Global premium rental brand operating in Iceland with airport locations and a similar mix of economy, SUV, and premium vehicles; competes directly with Hertz Iceland for international travelers at KEF and downtown.
• Thrifty Car Rental Iceland: Operated by the same parent company (Bílaleiga Flugleiða ehf.) as Hertz Iceland, serving the value tier with a shared fleet and locations — directly comparable operationally.
• Avis Iceland: Major global rental brand with Iceland operations serving tourists and corporate clients, competing for the same airport counter slots and long-term rental demand as Hertz Iceland.
• Budget Rent a Car Iceland: Value-positioned international rental brand in Iceland, appealing to price-sensitive tourists and overlapping with Hertz Iceland's economy and intermediate segments.
• Blue Car Rental: Iceland-based car rental specialist with strong airport presence and a broad fleet from economy to 4x4, directly competing with Hertz Iceland for inbound self-drive tourists on price and fleet quality.
• Lotus Car Rental: One of Iceland's largest independent car rental companies, operating a nationwide fleet and competing head-to-head with Hertz Iceland for international tourists and local renters across all vehicle categories.
• Dollar Car Rental Iceland: Also operated by the same parent company as Hertz Iceland, sharing fleet and operational infrastructure while targeting a distinct value-oriented customer segment.
• Europcar Iceland: International car rental brand with significant Iceland presence, offering comparable fleet categories and airport pickup services to Hertz Iceland's customer base.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/hertziceland
• YouTubeyoutube.com/user/hertz
• Facebookfacebook.com/hertziceland
• LinkedInlinkedin.com/company/hertz
• Instagraminstagram.com/hertz

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hertz Iceland