Avis 2008 Annual Report Download - page 10

Car rental business
Operations—Avis
We operate or franchise approximately 2,200 of the approximately 5,100 rental locations that comprise the Avis car rental system (the “Avis
System”) throughout the world, which represents one of the largest car rental systems in the world, based on total revenue and number of
locations, and encompasses locations at most of the largest airports and cities in the United States and internationally. The Avis System in
Europe, Africa, the Middle East and parts of Asia is primarily operated under royalty-free license agreements with Avis Europe Holdings,
Limited (“Avis Europe”), an independent third party, and is comprised of approximately 2,900 locations operated by Avis Europe and its sub-
licensees.
We own and operate approximately 1,300 Avis car rental locations in both the on-airport and local rental segments in North America, Australia,
New Zealand, Latin America and the Caribbean. In 2008, Avis generated total revenue of approximately $3.7 billion, of which approximately
83% (or $3.1 billion) was derived from U.S. operations. In addition, we franchise the Avis System to independent business owners in
approximately 900 locations throughout the United States, Canada, Latin America, Australia, New Zealand and parts of Asia. In 2008,
approximately 95% of the Avis System total domestic revenue was generated by our locations and the remainder was generated by locations
operated by franchisees. Franchisees generally pay royalty fees to us based either on total time and mileage charges or total revenue.
The table below presents the total number of locations that make up the Avis System:
Avis System Locations
*
In 2008, Avis derived approximately 60% and 40% of its domestic time and mileage revenue from commercial and leisure customers,
respectively, and 77% and 23% of its domestic revenue from customers renting at airports and locally, respectively.
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:
5
U.S.
International
Total
Our Avis company
-
owned locations
(includes agency
-
operated locations)
1,000
300
1,300
Our Avis franchisee locations
300
600
900
Our total Avis company
-
owned and franchisee locations
1,300
900
2,200
Avis Europe locations
**
-
2,900
2,900
Total Avis System Locations
1,300
3,800
5,100
*
Location counts are approximate.
**
Obtained from Avis Europe website.
•
Avis Preferred, a counter bypass program, which is available at major airport locations;
• where2 , a navigation system with real-time traffic alerts, that can suggest alternative routes and features Bluetooth hands-free calling
and MP3 playback capability as well as directions in multiple languages;
• Avis Cool Cars, a line of fun-to-drive vehicles such as the Cadillac CTS, Chevrolet Corvette, Chrysler Crossfire and Hummer H3, as
well as eco
-
friendly Nissan Altima and Toyota Prius
“
hybrid
”
vehicles;
• Roving Rapid Return, wireless technology which permits customers who are returning vehicles to obtain a printed charge record from
service agents at the vehicle as it is being returned;