Avis 2015 Annual Report Download - page 26

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18
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 2015, 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.
In 2015, we also introduced a new comprehensive case management system that our customer care agents use
to consistently and expeditiously handle a variety of issues and questions from our customers around the world.
EMPLOYEES
As of December 31, 2015, we employed approximately 30,000 people worldwide, of whom approximately 7,300
were employed on a part-time basis. Of our approximately 30,000 employees, approximately 21,000 were
employed in our Americas segment and 9,000 in our International segment.
In our Americas segment, 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, 2015, approximately 35% of our employees 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 ten 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. We vary our fleet size over the course of the year to
help manage any seasonal variations in demand, as well as localized changes in demand.
COMPETITION
The competitive environment for the vehicle rental industry is generally characterized by intense price and service
competition among global, local and regional competitors. Competition in our vehicle rental operations is based
primarily upon price, customer service quality, including usability of booking systems and ease of rental and