Avis 2007 Annual Report Download - page 11

Table of Contents
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 2,600 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 700 additional company-operated and sub-licensee locations.
We own and operate approximately 800 Budget car rental locations in the United States, Canada, Puerto Rico, Australia and New Zealand. In
2007, our Budget car rental operations generated total revenue of approximately $1.8 billion, of which 86% (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 2007, approximately 84% 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 2007, Budget derived 24% and 76% of its domestic
time and mileage car rental revenue from commercial and leisure customers, respectively, and 80% and 20% of its domestic car rental revenue
from customers renting at airports and locally, respectively.
Budget is a leading rental car supplier to the price-conscious segments of the industry, and Budget was named “Leading Provider of
Outstanding Car Rental Deals” in April 2007 by Travelzoo , a global Internet media company. Budget offers its customers Fastbreak, an
expedited rental service for frequent travelers, which operates much like Avis Preferred. Budget also offers the Budget Small Business
Program, a program for small businesses that offers discounted rates and central billing options, and Unlimited Budget, a loyalty program for
travel professionals established by Budget over ten years ago. Budget also offers Where2 and Roving Rapid Return, as described above.
Reservations
Customers can make Avis and Budget reservations through our Avis and Budget websites at avis.com and budget.com, through our reservation
centers (also referred to as contact centers) toll-free at 1-888-777-AVIS and 1-800-BUDGET7, respectively, through online travel portals,
through selected partners, including many major airlines utilizing direct connect technology, through their travel agent or by calling a location
directly. Travel agents can access our reservation systems through all major global distribution systems and can obtain information with respect
to rental locations, vehicle availability and applicable rate structures through these systems.
Marketing
Avis and Budget support their premium and value brand positions through a range of marketing channels and campaigns, including traditional
media, such as television, radio and print advertising, as well as Internet and direct marketing. Avis focuses its marketing around its industry-
leading customer loyalty and its award-winning “We try harder” campaign. Budget builds its marketing around retail advertising, key
partnerships and online marketing campaigns.
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The Avis First Program, a new customer loyalty program that rewards customers with additional benefits for frequent rentals; and
• Chauffeur Drive, a premium service which allows customers to hire a professional driver to drive their Avis rental car through an
arrangement with a third party provider.