Avis Budget Group Inc

(NYSE: CAR)

Industry: Travel & Tourism
On the web: http://www.avisbudget.com
Employees: 26,000

Avis Budget Group, Inc. was created through a merger with HFS Incorporated in December 1997 with the resultant corporation being renamed Cendant Corporation. On August 23, 2006, Cendant completed a separation into four separate companies, one for each of its former Real Estate Services businesses, its former Hospitality Services businesses, its former Travel Distribution Services businesses and its Vehicle Rental businesses. The Company operates two of the most recognized brands in the global vehicle rental industry through Avis Rent A Car System, LLC and Budget Rent A Car System, Inc. Avis Budget provides car and truck rentals and ancillary services to businesses and consumers in the United States and internationally. The Company's operations has an extended global reach that includes approximately 7,000 car and truck rental locations in the United States, Canada, Australia, New Zealand, Latin America, the Caribbean and parts of Asia. On average, its rental fleet totaled more than 424,000 vehicles and it completed more than 27 million vehicle rental transactions worldwide in 2008. Avis Budget operate in the following business segments: Domestic Car Rental: -provides car rentals and ancillary products and services in the United States. International Car Rental: - provides vehicle rentals and ancillary products and services mainly in Argentina, Australia, Canada, New Zealand, Puerto Rico and the U.S. Virgin Islands. Truck Rental: - provides truck rentals and related services to consumers and light commercial users in the United States. Avis Budget-s revenues are derived mainly from car and truck rentals in its Company-owned operations and include: time and mileage fees charged to its customers for vehicle rentals, reimbursement from its customers for certain operating expenses it incurs, including gasoline and vehicle licensing fees, as well as airport concession fees, which it pays in exchange for the right to operate at airports and other locations and sales of loss damage waivers and insurance and rentals of navigation units and other items in conjunction with vehicle rentals. The Company also earns royalty revenue from its franchisees in conjunction with their vehicle rental transactions. Avis Budget competes mainly with the following car rental companies: Hertz Global Holdings, Inc., Dollar Thrifty Automotive Group, Enterprise Rent-A-Car Company, which also operates the National Car Rental and Alamo brands and Europcar. The Company is subject to federal, state and local laws and regulations, including those relating to taxing and licensing of vehicles, franchising, consumer credit, consumer protection, environmental protection, insurance, privacy and labor matters.