Avis 2010 Annual Report Download - page 11

Table of Contents
2036, with a subsidiary of Avis Europe, and is comprised of approximately 1,050 locations (as disclosed by Avis Europe) operated by such
subsidiary of Avis Europe and its sub-licensees. We also license the Budget System to independent business owners who operate approximately
950 locations throughout the United States, Canada, Latin America, the Caribbean and parts of Asia. In 2010, approximately 84% of the Budget
System total U.S. revenue was generated by our locations with the remainder generated by locations operated by independent licensees, which
generally pay royalty fees to us based on a percentage of revenues.
The table below presents the approximate number of locations that make up the Budget System:
Budget System Locations *
In 2010, Budget derived approximately 30% and 70% of its U.S. time and mileage car rental revenue from commercial and leisure customers,
respectively, and 80% and 20% of its U.S. car rental revenue from customers renting at airports and locally, respectively.
Budget is a leading rental car supplier to more value-conscious segments of the industry. Budget offers its customers Fastbreak, an expedited
rental service for frequent travelers, which operates much like Avis Preferred, as well as where2 navigation units and Roving Rapid Return, as
described above. Budget also offers the Budget Small Business Program, a program for small businesses that provides discounted rates and
central billing options, and Unlimited Budget, a loyalty program for travel professionals established by Budget over ten years ago.
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 travel agents, or by calling a location
directly. Travel agents can access our reservation systems through all major global distribution systems (GDSs) and can obtain information with
respect to rental locations, vehicle availability and applicable rate structures through these systems. In 2010, we introduced a voice reservation
system which allows customers to conduct certain transactions such as confirmation, cancellation and modification of reservations using self-
service voice response technology. We also launched an enhanced version of our Apple mobile application allowing customers to make, view,
modify or cancel reservations or automatically include their profile using their iPhone, iPad or iPod Touch.
Marketing
Avis and Budget support their premium and value-conscious 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” marketing campaign. Budget builds its marketing around retail
advertising, key partnerships and online marketing campaigns.
We maintain strong links to the travel industry. Avis and Budget offer customers the ability to earn frequent traveler points with most major
airlines’ frequent traveler programs. In 2010, we renewed and expanded our
6
U.S.
International
Total
Company
-
operated locations
600
150
750
Licensee locations
200
1,800
2,000
Total Budget System Locations
800
1,950
2,750
*
Location counts are approximate.