Business Analysis of Avis Budget Group

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Avis Budget Group

AVIS BUDGET GROUP

Business Overview

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company operates through two segments, Americas and International. It operates the Avis brand car rental system with approximately 5,550 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand vehicle rental system with approximately 4,050 car rental locations, which serve the value-conscious segments of the industry; and the Zipcar brand, a membership-based car sharing network that provides vehicles to approximately 1 million members. The company also operates the Payless brand, which comprises approximately 240 vehicle rental locations; the Apex brand primarily in the deep-value segment of the car rental industry with approximately 25 rental locations in New Zealand and Australia; and the Maggiore brand that provides vehicle rental services in the commercial, leisure, and insurance replacement/leasing segments with approximately 130 rental locations in Italy, as well as the France Cars brand, which offers light commercial vehicle fleets with approximately 60 rental locations in France. In addition, it is involved in the local and one-way truck rental businesses with a fleet of approximately 22,000 vehicles, which are rented through a network of approximately 1,000 dealers and 480 company-operated locations that serve the consumer and light commercial sectors in the continental United States. Further, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.

Avis Budget Group

Avis Budget Group


R&P Rank: 326
Sector: Travel & Leisure
Industry:Car Rental Services
H.Q Location:New Jersey
Website: www.avisbudgetgroup.com
Company Address:
6 SYLVAN WAY, PARSIPPANY NJ 07054
Ph:973-496-4700

Business Analysis of Avis Budget Group

The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Avis Budget Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Avis Budget Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Avis Budget Group with an interactive chart.

  1. Revenue Growth: Avis Budget Group reported a revenue growth of 1.8% year-on-year during 2016. Car Rental Services Industry grew at 0.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Avis Budget Group spent 77.5% of its total revenues on COGS. Car Rental Services industry average (COGS share of revenue) in the same period was 68.5%
  3. R&D share of Revenues: Avis Budget Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Avis Budget Group spent 13.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Car Rental Services industry average SG&A spending in the same period was 11.7%
  5. Inventory share of Revenues: Avis Budget Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Avis Budget Group invested 17.2% of its total revenues on Accounts Payable (A/P) Car Rental Services industry average Accounts Payable investment in the same period was 11.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Avis Budget Group invested 15.4% of its total revenues on Accounts Receivable (A/R). Car Rental Services industry average Accounts Receivable investment in the same period was 13.5%
  8. PP&E share of Revenues: As a percentage of revenue, Avis Budget Group invested 128.8% of its total revenues on Property, Plants, and Equipments (PP&E). Car Rental Services industry average PPE investment in the same period was 135.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Avis Budget Group invested 21.7% of its total revenues on Intangibles. Car Rental Services industry average Intangibles investment in the same period was 24.5%
  10. Net Margins: Avis Budget Group Net Margins in the year 2016 were 1.9%. Car Rental Services industry average Net Margins in the same period were 1.4%

Sector and Industry Association of Avis Budget Group

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Avis Budget Group is associated with Travel & Leisure Sector and Car Rental Services Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of Avis Budget Group

With $8.7 billion revenues, Avis Budget Group ranked number 2 of all the companies in the US Car Rental Services industry. There were a total of 5 public companies in the US Car Rental Services industry that had revenues greater than $50 million during 2016.

The top companies in the US Car Rental Services industry by revenues during 2016 were:

  1. Hertz Global Holdings ($8.8 billion)
  2. Avis Budget Group ($8.7 billion)
  3. Ryder ($6.8 billion)
  4. Amerco ($3.3 billion)
  5. Herc Holdings ($1.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Avis Budget Groupand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of avis-budget-group

Hertz Global Holdings (HTZ) Business Analysis – Analyze Historical Performance, Strategic...

Hertz Global Holdings, Inc with $9 billion revenues in the year 2016 was the number 1 Car Rental Services company. Read this report to know the top competitors of Hertz Global Holdings and identify growth and cost optimization opportunities of Hertz Global Holdings

Ryder (R) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ryder System Inc with $7 billion revenues in the year 2016 was the number 3 Car Rental Services company. Read this report to know the top competitors of Ryder and identify growth and cost optimization opportunities of Ryder

Amerco (UHAL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Amerco with $3 billion revenues in the year 2016 was the number 4 Car Rental Services company. Read this report to know the top competitors of Amerco and identify growth and cost optimization opportunities of Amerco

Revenues Analysis

Avis Budget Group (CAR) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Avis Budget Group, Inc. (CAR) from 2012 to 2016. Avis Budget Group generated a total of $8.7 billion revenues during 2016. Avis Budget Group reported a revenue growth of 1.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Avis Budget Group (CAR) Revenues And Revenue Growth From 2004 To...

This report provides the last thirteen years revenues and revenue growth of Avis Budget Group, Inc. (CAR) from 2004 to 2016. Avis Budget Group generated a total of $8.7 billion revenues during 2016. Avis Budget Group reported a revenue growth of 1.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Avis Budget Group (CAR) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Avis Budget Group, Inc. (CAR) revenue growth with Car Rental Services industry growth during the last five years from 2012 to 2016. Avis Budget Group reported a revenue growth of 1.8% year-over-year during 2016. The Car Rental Services industry growth was 0.8% year-over-year during 2016. Avis Budget Group growth was faster than the industry during 2016.

Profit Analysis

Avis Budget Group (CAR) Net Profit And Net Margin From 2012...

This report provides the last five years net profit and net margin of Avis Budget Group, Inc. (CAR) from 2012 to 2016. Avis Budget Group reported a total net income of $163 million during 2016. Avis Budget Group generated a total of $8.7 billion revenues during 2016. Avis Budget Group net profit margin was 1.9% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Avis Budget Group (CAR) Net Profit And Net Margin From 2004...

This report provides the last thirteen years net profit and net margin of Avis Budget Group, Inc. (CAR) from 2004 to 2016. Avis Budget Group reported a total net income of $163 million during 2016. Avis Budget Group generated a total of $8.7 billion revenues during 2016. Avis Budget Group net profit margin was 1.9% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Avis Budget Group (CAR) Net Profit Margin Comparison With Industry From...

This report provides a comparison of Avis Budget Group, Inc. (CAR) net profit margin with Car Rental Services industry net profit margin during the last five years from 2012 to 2016. Avis Budget Group reported a net profit margin of 1.9% during 2016. The Car Rental Services industry net profit margin was 1.4% during 2016. Avis Budget Group was more profitable than the industry during 2016.

Cost & Expenses Analysis