Avis 2010 Annual Report Download - page 8

Table of Contents
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and pricing, to use various marketing channels and to maintain marketing affiliations and corporate account contracts, which
complement each brand’s positioning. In 2011, we plan to invest in our brands through expanded television, print and on-line and off-
line marketing, and other efforts.
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Expanding Our Revenue Sources
. We plan to continue to focus on promoting car class upgrades, adjusting our mix of vehicles to
match customer demand, expanding our ancillary revenues by offering additional products and services to on- and off-airport
customers and increasing, where appropriate, our recovery from our customers of costs imposed on us by third parties. Opportunities
for ancillary revenue growth include adding sales of additional insurance coverages and insurance-related and other ancillary products
and services, such as electronic toll collection services, satellite radio and our w here2 GPS navigation product, to the rental
transactions of an increasing percentage of our renters. We also plan to achieve incremental growth in revenue from small business and
international customers.
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Capturing Incremental Profit Opportunities.
We plan to continue our focus on yield management and pricing optimization and seek
to increase the time and mileage rental fees we earn per rental day. We have implemented technology that strengthens our yield
management and that enables us to tailor our product/price offerings to specific customer segments. We expect to continue to adjust
our pricing to bolster profitability and match changes in demand. In addition, we believe the expansion of our revenue sources
(discussed above) should permit us to generate incremental profits from our customer base, while at the same time enhancing our
customers’
vehicle rental experience. We plan to intensify our efforts to build customer loyalty, and reduce customer acquisition costs,
through our Customer Led, Service Driven ™ program that is intended to enhance our customers’ rental experience, from reservation
to return.
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Controlling Costs and Promoting Efficiencies.
We have continued our efforts to rigorously control costs. We have taken aggressive
action to reduce expenses throughout the organization, through a five-point cost-reduction and efficiency-improvement plan as
described above. In addition, we continue to develop and implement our Performance Excellence process improvement initiative to
increase efficiencies, reduce operating costs and create sustainable cost savings using LEAN, Six Sigma and other tools. This initiative
has generated substantial savings since its implementation and should continue to provide benefits in 2011. We have also implemented
technology solutions, including self-service voice reservation technology and fleet optimization technologies, to reduce costs, and we
will continue to pursue innovative solutions to support our strategic initiatives. We believe such steps will continue to aid our financial
performance.
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Mitigating Risks.
We expect to continue to face challenges, as demand for travel services is not likely to return in 2011 to the levels
experienced before the economic recession, and we operate in a highly competitive industry. We seek to mitigate our exposure to risks
in numerous ways, including the actions described above, and through continued optimization of fleet levels to match changes in
demand for vehicle rentals, maintenance of liquidity to fund our fleet and our operations, and adjustments in the size, nature and terms
of our relationships with vehicle manufacturers.