Avis 2015 Annual Report Download - page 11

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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 180 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 580,000 vehicles and we completed more than 38 million vehicle
rental transactions worldwide in 2015. We generate approximately 70% of our vehicle rental revenue from on-
airport locations and approximately 30% 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 11,000 car and truck rental locations throughout the world, including
approximately 5,000 car rental locations operated by our licensees. We believe that Avis,Budget and Zipcar enjoy
complementary demand patterns with mid-week commercial demand balanced by weekend leisure demand.
Our Zipcar brand is the world’s leading car sharing company, with nearly one million 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 21,000 vehicles that operate through a network of approximately 1,000
dealer-operated and 450 Company-operated locations throughout the continental United States. We also own
Payless, a car rental brand 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 India and China.
COMPANY HISTORY
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
was recognized as one of the top ten advertising campaigns of the 20th century by Advertising Age magazine.
HFS Incorporated acquired Avis in 1996 and merged with our predecessor company in 1997, with the combined
entity being renamed Cendant Corporation. The Company is a Delaware corporation headquartered in
Parsippany, New Jersey.
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
customer and grew its business rapidly during the 1960s, expanding its rental car offerings throughout North
America and significantly expanding its Budget truck rental business in the 1990s.