Avis Budget Group: Company Strategy & Performance Analysis
Avis Budget Group was founded in 1946 and is one of the world’s leading vehicle rental and car sharing services. The company operates through three brands: Avis, Budget, and Zipcar in North America, Europe, Australia, and New Zealand. In 2016, Avis Budget Group generated 70% of its vehicle rental revenue from on-airport locations, while the remaining 30% was derived from off-airport locations.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading car rental companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including fleet size.
Acquisitions enabled Avis Budget Group to enhance its average fleet size
The company’s fleet size grew from 547,000 in 2015 to 562,000 in 2016, indicating an annual increase of 2.7%. Avis offers luxury cars and specialty-use vehicles. In 2016, the company purchased vehicles from Audi, BMW, Chrysler, Citroen, Fiat, Ford, General Motors, Hyundai, Kia, Mercedes, Nissan, Opel, Peugeot, Renault, Seat, Toyota, Volkswagen and Volvo. In 2016, the group’s average monthly vehicle rental fleet size rose from 507,000 vehicles in January 2016 to 683,000 in July 2016.
Rental volume driving revenue growth
During 2016, net revenues recorded an annual rate of 2.0% to reach US$8.7 billion. An increase in rental revenue and currency rate fluctuations enabled the company to enhance its revenue.
Enhancing customer experience
In 2016, the company launched the Avis Now mobile app, providing customers with a new and innovative way to control different elements of their rental experience via their smartphone or tablet. Customers are able to view what cars are available in real-time, confirm, cancel or extend a rental, add ancillary products, and return a car without assistance.
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