Avis 2006 Annual Report Download - page 10

Table of Contents
In 2006, Avis derived approximately 60% and 40% of its domestic time and mileage revenue from commercial and leisure customers,
respectively, and 82% and 18% of its domestic revenue from customers renting at airports and locally, respectively. Customers who rent locally
often rent in order to temporarily replace their cars when their own cars are not available either due to accidents or otherwise. We are focused
on increasing the amount of revenue we generate locally for both Avis and Budget.
The Avis brand provides high-quality car rental services at price points generally above non-branded and value-branded national car rental
companies. We offer Avis customers a variety of premium services, including:
Operations—Budget
The Budget vehicle rental system (the “Budget System”) is one of the largest car rental systems in the world, based on total revenue and
number of locations. We operate or franchise approximately 1,900 of the approximately 2,700 car rental locations in the Budget System,
including locations at most of the largest airports and cities in the United States and certain other regions. The Budget System in Europe, Africa
and the Middle East is operated under a royalty-free trademark license agreement with an independent third party, which is an affiliate of Avis
Europe and is comprised of approximately 800 additional company operated and sub-licensee locations.
We own and operate approximately 700 Budget car rental locations in the United States, Canada, Puerto Rico, Australia and New Zealand. For
the year ending December 31, 2006, our Budget car rental operations generated total revenue of approximately $1.7 billion, of which 88% (or
$1.5 billion) was derived from U.S. operations. We also franchise the Budget System to independent business owners who operate
approximately 1,100 locations throughout the United States, Canada, Latin America, the Caribbean and parts of the Asia Pacific region. In
2006, approximately 88% of the Budget System domestic total revenue was generated by our locations with the remainder generated by
locations operated by independent franchisees. Independent franchisees generally pay royalty fees to us based on gross rental revenue. In 2006,
Budget derived 28% and 72% of its domestic time and mileage car rental revenue from commercial and leisure customers, respectively, and
79% and 21% of its domestic car rental revenue from customers renting at airports and locally, respectively.
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Avis Preferred, a counter bypass program, which is available at major airport locations;
• Avis Where2, a navigation system with real-time traffic alerts, including weather delays, construction tie-ups and traffic snarls,
which suggests alternative routes and features Bluetooth hands-
free calling, MP3 playback capability as well as directions in multiple
languages;
•
Avis Cool Cars, a new line of fun
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to
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drive vehicles, which include the Cadillac CTS, Volvo S60 and Hummer H3;
•
Roving Rapid Return program, which permits customers who are returning vehicles to obtain a printed charge record at the vehicle as
it is being returned;
• Avis Cares, a program which provides customers with area-specific driver safety information, the latest child safety seats (available
for rent), local information and driving maps;
•
Avis Access, a full range of special products and services for drivers and passengers with disabilities; and
•
Avis Interactive, a proprietary management tool that allows select corporate clients to easily view and analyze their rental activity via
the Internet through account analysis and activity reports, allowing these clients to better manage their travel budgets and monitor
employee compliance with applicable travel procedures.