About Avis Budget Group

Avis Budget Group, Inc. operates as a global provider of mobility solutions through the company’s three most recognized brands, Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. The company’s brands offer a range of options, from car and truck rental to car sharing. The company licenses the use of the Avis, Budget, Zipcar and other brands’ trademarks to licensees in areas in which the company does not operate directly. The company and its licensees operate its brands in approximately 180 countries throughout the world. The company generally maintains a leading share of airport car rental revenues in North America, Europe and Australasia; and the company operates a leading car sharing network and one of the leading commercial truck rental businesses in the United States. On average, the company’s global rental fleet totaled approximately 691,500 vehicles in 2023. The company completed nearly 39 million vehicle rental transactions worldwide during 2023. The company’s brands and mobility solutions have an extended global reach with approximately 10,250 rental locations throughout the world, including approximately 3,700 locations operated by the company’s licensees. The company categorizes its operations into two reportable business segments: Americas - Primarily consisting of vehicle rental operations in North America, South America, Central America and the Caribbean; car sharing operations in certain of these markets; and licensees in certain areas in which the company does not operate directly. International - Primarily consisting of vehicle rental operations in Europe, the Middle East, Africa, Asia, and Australasia; car sharing operations in certain of these markets; and licensees in certain areas in which the company does not operate directly. The company offers its United States customers a range of optional insurance products and coverages, such as supplemental liability insurance, personal accident insurance, personal effects protection, emergency sickness protection, automobile towing protection and cargo insurance. Strategy For 2024, the company expects its strategy to continue to primarily focus on customer experience to strengthen the company, maximize profitability, and deliver stakeholder value. To execute the company’s strategy, the company expects to continue to leverage marketing and invest in technology and infrastructure to support the company’s vehicle related rentals. For customer experience, the company seeks to enhance the end to end customer journey by leveraging technology to, among other things, streamline reservations, and modernize the pick-up, exit, on rent and return experiences. Brands and Operations Brands The company’s Avis, Budget and Zipcar brands are three of the most recognized brands in the company’s industry. The company also operates the Payless and Apex brands in the value segment of the car rental industry, augmenting the company’s Avis, Budget and Zipcar brands. In addition, the company’s Maggiore and Morini Rent brands in Italy, FranceCars brand in France and Turiscar brand in Portugal further extend the company’s offerings. Avis The Avis brand provides high-quality vehicle rental and other mobility solutions at price points generally above non-branded and value-branded vehicle rental companies and serves the premium commercial and leisure segments of the travel industry. The company operates or licenses Avis vehicle rental locations at virtually all of the largest commercial airports and cities in the world. The company also licenses the Avis brand to independent commercial owners who operate approximately half of the company’s locations worldwide and generally pay royalty fees to the company based on a percentage of applicable revenues. The company offers Avis customers a variety of premium services, including: The Avis mobile application, which allows customers a unique and innovative way to control many elements of their rental experience via their mobile devices without the need to visit the rental counter. The Avis mobile application also allows customers to track Avis shuttle buses to rental locations, find their vehicle, and locate nearby gas stations and parking facilities; Avis Preferred, the company’s frequent renter rewards program that offers counter bypass at major airport locations; Invited or earned customer status levels allowing for upgrades and counter bypass; Avis QuickPass, a feature on the Avis mobile application that allows customers to bypass the counter. In many United States locations, QuickPass also allows customers to choose, exchange or upgrade their car upon arrival and utilize a unique code to exit via the company’s automated Express Exit for a completely contactless rental experience; Availability of a selection of luxury vehicles through the company’s Avis Signature Series, as well as premium, sport, performance and electrified vehicles; Access to satellite radio service, mobile WiFi devices, and GPS navigation; Avis rental services, such as roadside assistance, fuel service options, e-receipts, electronic toll collection services that allow customers to pay highway tolls without waiting in toll booth lines, and amenities, such as Avis Cares, a full range of special products and services for drivers and passengers with disabilities; For the company’s corporate customers, Avis Budget Group Business Intelligence, a proprietary reporting solution that provides a centralized reporting tool and customer reporting portal for corporate clients in North America and Europe, enabling them to easily view and analyze their rental activity, allowing them to better manage their travel budgets and monitor employee compliance with applicable travel policies. Budget Car Rental The Budget brand is a leading supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious customers. The company operates or licenses Budget car rental locations at airports and in cities worldwide. The company also licenses the Budget brand to independent commercial owners who generally pay royalty fees to the company based on a percentage of applicable revenues. Budget offers its customers several products and services similar to Avis, such as refueling options, roadside assistance, electronic toll collection, and other supplemental rental products, emailed receipts and special rental rates for frequent renters. In addition, Budget’s mobile application allows customers to reserve, modify and cancel reservations on their mobile device, and its Fastbreak and QuickPass service expedites rental service for frequent travelers. Budget Truck The company’s Budget Truck rental business is one of the largest local and one-way truck and cargo van rental businesses in the United States. As of December 31, 2023, the company’s Budget Truck fleet is consisted of approximately 21,000 vehicles that are rented through a network of approximately 440 dealer-operated and 415 company-operated locations throughout the continental United States. These dealers are independently-owned businesses that generally operate other retail service businesses. In addition to their principal businesses, the dealers rent the company’s light- and medium-duty trucks and commercial cargo vans to customers and are responsible for collecting payments on the company’s behalf. The dealers receive a commission on all truck, van and ancillary equipment rentals. The Budget Truck rental business serves both the light commercial and consumer sectors. The light commercial sector consists of a wide range of businesses that rent light- to medium-duty trucks, which the company defines as trucks having a gross vehicle weight of less than 26,000 pounds, for a variety of commercial applications. The consumer sector primarily consists of individuals who rent trucks to move household goods on either a one-way or local basis. Zipcar Zipcar is a leading car sharing network, driven by a mission to enable simple and responsible urban living. With its wide variety of self-service vehicles available by the hour or day, Zipcar offers comprehensive, convenient and flexible car sharing options in urban areas and college campuses in hundreds of cities and towns. Zipcar provides its members on-demand, self-service vehicles in reserved parking spaces located in neighborhoods, business districts, office complexes and college campuses, as an alternative to car ownership. The company continues to offer its Zipcar Flex product in London providing one-way rentals, including to and from Heathrow airport, which can be parked in public on-street parking spots in designated areas of the city. Other Brands The company’s other brands include the following: Payless, a leading rental car supplier serving the deep-value segment of the industry, which the company licenses or operates in approximately 270 locations worldwide, including more than 160 locations operated by licensees and approximately 110 company-operated locations. Company-operated Payless locations are primarily located in North America, the majority of which are at or near major airports. Payless’ rental fees are often lower than those of larger, more established vehicle rental brands. The Payless business model allows the company to extend the life-cycle of a portion of its rental fleet, as the company ‘cascade’ certain vehicles that exceed certain Avis and Budget age or mileage thresholds to be used by Payless. Maggiore and Morini Rent, leading vehicle rental brands in Italy. Maggiore has a strong local reputation and benefits from a strong presence at airport, off-airport and railway locations and from the integration of the company’s existing operations and rental fleet management expertise. The company operates or licenses in approximately 140 rental locations throughout the country. Morini Rent offers rental of cars, vans, and refrigerated vehicles. The company operates in approximately 45 rental locations throughout the country. FranceCars, which operates one of the largest light commercial vehicle rental fleets in France, in approximately 70 rental locations, and leverages the company’s existing operational processes and local customer base. Apex, which operates in approximately 25 rental locations at, or near, major airports and in several metropolitan cities in New Zealand and Australia. Turiscar, a leading vehicle rental brand in Portugal, which operates primarily in the corporate market, including light commercial vehicles, at approximately 30 rental locations throughout the country. ACL Hire and McNicoll Hire, providers of quality vehicle rental and maintenance services in the U.K., with a strong focus on light commercial vehicles. Reservations, Marketing and Sales Reservations The company’s customers can make vehicle rental reservations through its brand-specific websites and toll-free reservation centers, through the company’s brand-specific mobile applications, online travel agencies, travel agents or through selected partners, including many major airlines, associations and retailers. Travel agents can access the company’s reservation systems through all major global distribution systems, which provide information with respect to rental locations, vehicle availability and applicable rate structures. The company’s Zipcar members can reserve vehicles through Zipcar’s reservation system, which is accessible online or on a mobile device, by the hour or day, at rates that include fuel, secondary insurance and other costs typically associated with vehicle ownership. Marketing and Sales The company supports its brands through a range of marketing channels and campaigns, including traditional media, as well as digital media, including internet and email marketing, social media, streaming services, and mobile device applications. In 2023, the company launched the Plan On Us campaign as the Avis brand platform to highlight the trust its customers have in the company. The company also markets through sponsorships of major sports entities and charitable organizations. The company utilizes a customer relationship management system that enables the company to deliver more targeted and relevant offers to customers across online and offline channels, including an expedited and contactless rental process and loyalty programs that reward frequent renters with free rental days and car class upgrades. The company is able to reach and merchandise cars and rentals to a diverse demographic of consumers through the company’s strategic partnerships with airlines, associations and hotel companies; and the company maintains strong links to the travel industry. In addition, the company has developed relationships that provide brand exposure and access to new customers, including deals to provide vehicles to ride-hail drivers in cities across North America. In 2023, approximately 50% of vehicle rental transactions originating from Avis locations were generated by travelers who rented from Avis under contracts between Avis and their employers or through membership in an organization with which Avis has a contractual affiliation. The company offers Avis Budget Group Business Intelligence, an online portal complete with rental summary dashboards, visualizations and detailed reports that provides the company’s corporate customers with insight into their program’s performance, giving them direct access to more data in a customer-facing portal offering useful data insights, including options to customize and schedule reports. Avis also maintains marketing relationships with other travel partners through which the company is able to offer their customers incentives to rent from Avis. Additionally, the company offers Unlimited Rewards, its loyalty incentive program for travel agents, and Avis and Budget programs for small businesses that offer discounted rates, central billing options and rental credits to members. The company’s Zipcar brand utilizes a diverse set of marketing and sales strategies to acquire and engage members, including digital marketing, email and in-app messaging, and social media engagement. Zipcar maintains close relationships with universities that provide access to campuses and various marketing channels to attract students who, upon graduation, may continue their relationship with the company. Through the company’s Zipcar for Business program, the company also offers direct-bill accounts and employee benefit programs to companies and governments that support the use of Zipcar vehicles. Licensing The company has licensees in approximately 175 countries throughout the world. Licensed locations are independently operated by the company’s licensees and range from large operations at major airport locations and territories encompassing entire countries to relatively small operations in suburban or rural locations. The company’s licensees generally maintain separate independently owned and operated fleets. In some geographies the company facilitates one-way vehicle rentals between company-operated and licensed locations, which enables the company to offer an integrated network of locations to its customers. The company generally enjoys good relationships with its licensees and meet regularly with them at regional, national and international meetings. The company’s relationships with its licensees are governed by license agreements that grant the licensee the right to operate independently operated vehicle rental businesses in certain territories. The company’s license agreements generally provide its licensees with the exclusive right to operate under one or more of the company’s brands in their assigned territory. The company continues to optimize the Avis, Budget and Payless brands by issuing new license agreements and periodically acquiring licensees to grow its revenues and expand its global presence. Other Revenues In addition to revenues derived from time and mileage fees from the company’s vehicle rentals and licensee royalties, the company generates revenues from its customers through the sale and/or rental of optional ancillary products and services. The company offers products to customers that will enhance their rental experience, including: Collision and loss damage waivers, under which the company agrees to relieve a customer from financial responsibility arising from vehicle damage incurred during the rental; Additional/supplemental liability insurance or personal accident/effects insurance products which provide customers with additional protections for personal or third-party losses incurred; Products for driving convenience, such as fuel service options, roadside assistance services, electronic toll collection services, access to satellite radio, mobile WiFi devices, GPS navigation and child safety seat rentals; and Products that supplement truck rental, including automobile towing equipment and other moving accessories, such as hand trucks, furniture pads and moving supplies. The company also receives payment from its customers for certain operating expenses that the company incurs, including vehicle licensing fees, as well as airport concession fees that the company pays in exchange for the right to operate at airports and other locations. In addition, the company collects membership fees in connection with its car sharing business. Fleet The company offers a wide variety of vehicles in its rental fleet, including luxury vehicles, electrified vehicles, specialty-use vehicles and light commercial vehicles. The company’s fleet primarily consists of vehicles from the current and immediately preceding model year. The company maintains a single fleet of vehicles for Avis and Budget in countries where the company operates both brands. A substantial majority of Zipcar’s fleet is dedicated to use by Zipcar. Fleet Purchases The company participates in a variety of vehicle purchase programs with major vehicle manufacturers. In 2023, the company primarily purchased vehicles from Stellantis N.V., General Motors Company, Renault-Nissan-Mitsubishi Alliance, Toyota Motor Corporation, Hyundai Motor Group, Ford Motor Company and Volkswagen Group. Fleet Dispositions The company sells vehicles direct to consumers through the company’s retail locations, and through RubyCar, the company’s online retail sales platform, which offers customers the ability to purchase well-maintained, late-model rental vehicles from the company’s fleet. The company disposes of the company’s program vehicles in accordance with repurchase or guaranteed depreciation programs with major vehicle manufacturers. Fleet Utilization In 2023, the company’s average quarterly vehicle rental fleet size ranged from a low of approximately 621,000 vehicles in the first quarter to a high of approximately 754,000 vehicles in the third quarter. The company’s average car rental fleet size and utilization are typically highest in the summer months. Fleet Maintenance The company’s Supply Chain Department reviews, distributes, and makes accessible original equipment manufacturer (‘OEM’) technical service bulletins that can be retrieved electronically at the company’s repair locations. In addition, the company has implemented policies and procedures to promptly address manufacturer recalls as part of the company’s ongoing maintenance and repair efforts to maximize the customer experience. Seasonality The company’s operations are seasonal, with the third quarter of the year (year ended December 2023) historically having been the company’s strongest due to the increased level of leisure travel during the quarter. The company has a partially variable cost structure and routinely adjust the size, and therefore the cost, of the company’s rental fleet in response to fluctuations in demand. Intellectual Property The service marks ‘Avis,’ ‘Budget’ and ‘Zipcar’ and related marks or designs incorporating such terms and related logos and marks, such as ‘Plan On Us,’ ‘We Try Harder,’ ‘We Know The Road’ and ‘Own The Trip, Not The Car’, ‘Preferred’ and ‘Fastbreak’ are material to the company’s vehicle rental and car sharing businesses. The company’s subsidiaries and licensees actively use these marks. All of the material marks used by Avis, Budget and Zipcar are registered (or have applications pending for registration) with the U.S. Patent and Trademark Office, as well as in foreign jurisdictions. The company’s subsidiaries own the marks and other intellectual property, including the Wizard system, used in the company’s business. The company also owns trademarks and logos related to the ‘Apex Car Rentals’ brand in Australia and New Zealand, the ‘Payless Car Rental’ brand in the United States and several other countries, the ‘Maggiore’ and ‘Morini Rent’ brands in Italy, the ‘FranceCars’ brand in France and the ‘Turiscar’ brand in Portugal. The company’s subsidiaries have also filed patent applications pertaining to fleet and connected car technology in the United States and other countries. Competition The company’s vehicle rental operations compete primarily with Enterprise Holdings, Inc., which operates the Enterprise, National and Alamo car rental brands; Hertz Global Holdings, Inc., which operates the Hertz, Dollar and Thrifty brands; Europcar Mobility Group, which operates the Europcar, Goldcar, InterRent, Buchbinder, Fox Rent A Car and Ubeeqo brands; and Sixt SE. The company’s Budget Truck operations in the United States competes with several other local, regional and nationwide truck rental companies including U-Haul International, Inc., Penske Truck Leasing Corporation, Ryder System, Inc., Enterprise Truck Rental, and Hertz Global Holdings, Inc. History Avis Budget Group, Inc. was founded in 1946. The company was incorporated in 1974.