Avis 2014 Annual Report Download - page 10

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3
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. “Avis,” “Budget,” “Budget Truck,” “Zipcar,” “Payless”
and “Apex” refer to our Avis Rent A Car System, LLC, Budget Rent A Car System, Inc., Budget Truck Rental, LLC,
Zipcar, Inc., Payless Car Rental and Apex Car Rentals operations, respectively, and, unless the context otherwise
requires, do not include the operations of our licensees, as further discussed below.
OVERVIEW
We are a leading global provider of vehicle rental and car sharing services, operating three of the most
recognized brands in the industry through Avis, Budget and Zipcar. We are a leading vehicle rental operator in
North America, Europe, Australia, New Zealand and certain other regions we serve. We and our licensees operate
the Avis and Budget brands in approximately 175 countries throughout the world. We generally maintain a leading
share of airport car rental revenue in North America, Europe, Australia and New Zealand and we operate one of
the leading truck rental businesses in the United States.
Our brands are differentiated to help us meet a wide range of customer needs throughout the world. Avis is a
leading rental car supplier positioned to serve the premium commercial and leisure segments of the travel
industry, and Budget is a leading rental vehicle supplier focused primarily on more value-conscious segments of
the industry. On average, our rental fleet totaled more than 545,000 vehicles and we completed more than 35
million vehicle rental transactions worldwide in 2014. We generate approximately 67% of our vehicle rental
revenue from on-airport locations and approximately 33% of our revenue from off-airport locations. We also
license the use of the Avis and Budget trademarks to licensees in areas in which we do not operate directly. Our
brands have an extended global reach with more than 10,000 car and truck rental locations throughout the world,
including approximately 4,700 car rental locations operated by our licensees. We believe that Avis and Budget
both enjoy complementary demand patterns with mid-week commercial demand balanced by weekend leisure
demand.
Our Zipcar brand, which we acquired in 2013, is the world’s leading car sharing company, with more than 915,000
members in the United States, Canada and Europe. We operate Budget Truck, one of the leading truck rental
businesses in the United States, with a fleet of approximately 22,000 vehicles that operate through a network of
approximately 1,150 dealer-operated and 400 Company-operated locations throughout the continental United
States. We also own Payless, a car rental brand that we acquired in 2013 that operates in the deep-value
segment of the industry, and Apex, which is a leading deep-value car rental brand in New Zealand and Australia.
We also have investments in certain of our Avis and Budget licensees outside of the United States, including
licensees in Brazil, India and China.
COMPANY HISTORY
The Company is a Delaware corporation headquartered in Parsippany, New Jersey. We operate three of the most
recognized brands in the global vehicle services industry through Avis, Budget and Zipcar, as well as Budget
Truck, one of the leading truck rental businesses in the United States, and smaller regional car rental brands. Our
predecessor company was formed in 1974, and in 1997 merged with HFS Incorporated, and the combined
company was subsequently renamed Cendant Corporation. HFS acquired the Avis brand in 1996, and in 2001
Cendant acquired Avis’ vehicle rental operations in North America, Australia and New Zealand.
Founded in 1946, Avis is believed to be the first company to rent cars from airport locations. Avis expanded its
geographic reach throughout the United States through growth in licensed and Company-operated locations in
the 1950s and 1960s. In 1963, Avis introduced its award winning “We try harder®” advertising campaign, which is
considered to be one of the top ten advertising campaigns of the 20th century by Advertising Age magazine.
In 2002, Cendant acquired the Budget brand and Budget vehicle rental operations in North America, Australia and
New Zealand. Budget was founded in 1958 as a car rental company for the value-conscious vehicle rental