Avis 2014 Annual Report Download - page 25

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18
CUSTOMER SERVICE
We believe our commitment to delivering a consistently high level of customer service across all of our brands is a
critical element of our success and strategy. Our Customer Led, Service Driven™ program focuses on improving
the overall customer experience based on our research of customer service practices, improved customer
insights, executing our customer relationship management strategy and delivering customer-centric employee
training.
Our associates and managers at our Company-operated locations are trained and empowered to resolve most
customer issues at the location level. In addition, we have simplified our rental agreements for both the Avis and
Budget brands to make them easier for our customers to read and understand. We also continuously track
customer-satisfaction levels by sending location-specific surveys to recent customers and utilize detailed reports
and tracking to assess and identify ways that we can improve our customer service delivery and the overall
customer experience. In 2014, we received feedback from more than 1 million customers. Our location-specific
surveys ask customers to evaluate their overall satisfaction with their rental experience, among other things.
Results are analyzed in aggregate and by location to help further enhance our service levels to our customers.
EMPLOYEES
As of December 31, 2014, we employed approximately 30,000 people worldwide, of whom approximately 7,500
were employed on a part-time basis. Of our approximately 30,000 employees, approximately 21,000 were
employed in our North America and Truck Rental segments and 9,000 in our International segment.
In our North America and Truck Rental segments, the majority of our employees are at-will employees and,
therefore, not subject to any type of employment contract or agreement. Certain of our executive officers may be
employed under employment contracts that specify a term of employment and specify pay and other benefits. In
our International segment, we enter into employment contracts and agreements in those countries in which such
relationships are mandatory or customary. The provisions of these agreements correspond in each case with the
required or customary terms in the subject jurisdiction. Many of our employees are covered by a wide variety of
union contracts and governmental regulations affecting, among other things, compensation, job retention rights
and pensions.
As of December 31, 2014, approximately 30% of our employees in each of our North America, International and
Truck Rental segments were covered by collective bargaining agreements with various labor unions. We believe
our employee relations are satisfactory. We have never experienced a large-scale work stoppage.
AIRPORT CONCESSION AGREEMENTS
We generally operate our vehicle rental and car sharing services at airports under concession agreements with
airport authorities, pursuant to which we typically make airport concession payments and/or lease payments. In
general, concession fees for on-airport locations are based on a percentage of total commissionable revenue (as
defined by each airport authority), subject to minimum annual guaranteed amounts. Concessions are typically
awarded by airport authorities every three to five years based upon competitive bids. Our concession agreements
with the various airport authorities generally impose certain minimum operating requirements, provide for
relocation in the event of future construction and provide for abatement of the minimum annual guarantee in the
event of extended low passenger volume.
OTHER BUSINESS CONSIDERATIONS
SEASONALITY
Our car rental business is subject to seasonal variations in customer demand patterns, with the spring and
summer vacation periods representing our peak seasons. Our truck rental operations also experience higher
levels of demand during the late spring and summer months when most self-moves occur, with the third quarter
typically being our busiest quarter. Generally, however, December is also a strong month for our truck rental
operations due to increased retail sales activity and package deliveries. Our Zipcar operations are also subject to