Avis 2009 Annual Report Download - page 6

Table of Contents
PART I
ITEM 1. BUSINESS
Except as expressly indicated or unless the context otherwise requires, the
“Company”, “Avis Budget”, “we”, “our” or “us” means Avis
Budget Group, Inc., and its subsidiaries and
“Avis Budget Car Rental” or “ABCR” means Avis Budget Car Rental, LLC, and its subsidiaries,
the companies that comprise our vehicle rental operations. “Avis” and “Budget” refer to our Avis and Budget operations, respectively, and do
not include the operations of Avis Europe and its affiliates, as further discussed below.
Overview
We operate two of the most recognized brands in the global vehicle rental industry through Avis and Budget. Avis is a leading rental car supplier
to the premium commercial and leisure segments of the travel industry and Budget is a leading rental car supplier to the value-conscious
segments of the industry. We are a leading vehicle rental operator in North America, Australia, New Zealand and certain other regions we serve,
based on published airport statistics. We maintain a leading share of airport car rental revenue and operate one of the leading consumer truck
rental businesses in the United States.
Our car rental business enjoys significant benefits from operating two distinct brands that target different industry segments but share the same
fleet, maintenance facilities, systems, technology and administrative infrastructure. We believe that Avis and Budget both enjoy complementary
demand patterns with mid-week commercial demand balanced by weekend leisure demand. In 2009, we generated total revenues of $5,131
million. The Avis, Budget and Budget Truck brands accounted for approximately 61%, 32% and 7% of our revenue, respectively, in 2009.
Our operations have an extended global reach that includes approximately 6,500 car and truck rental locations in the United States, Canada,
Australia, New Zealand, Latin America, the Caribbean and parts of Asia. On average, our global rental fleet totaled more than 350,000 vehicles,
and we completed more than 23 million vehicle rental transactions worldwide in 2009. Domestically, in 2009, we derived approximately 81% of
our nearly $4.0 billion in total car rental revenue from on-airport locations and approximately 19% of our domestic car rental revenue from off-
airport locations, which we refer to as our local market business. We rent our fleet of approximately 29,000 Budget trucks through a network of
approximately 2,300 dealer-operated and 250 company-operated locations throughout the continental United States. We also license the use of
the Avis and Budget trademarks to multiple licensees in areas in which we do not operate. The Avis and/or Budget vehicle rental systems in
Europe, Africa, the Middle East and parts of Asia are operated at approximately 3,800 locations by subsidiaries and sub-licensees of an
independent third party primarily under royalty-free trademark license agreements.
Segment Information
We categorize our operations in three operating segments: domestic car rental, consisting of our Avis and Budget U.S. car rental operations;
international car rental, consisting of our international Avis and Budget vehicle rental operations; and truck rental, consisting of our Budget truck
rental operations in the United States. In 2009:
1
•
Domestic car rental.
Our domestic car rental segment generated approximately 73 million rental days and average time and mileage
revenue per day of $42.22 with an average rental fleet of approximately 270,200 vehicles;
•
International car rental.
Our international car rental segment generated approximately 13 million rental days and average time and
mileage revenue per day of $42.36 with an average rental fleet of approximately 51,100 vehicles; and
• Truck rental. Our truck rental segment generated approximately 4 million rental days and average time and mileage revenue per day
of $73.08 with an average rental fleet of approximately 29,000 trucks.