Consistent with the goal of expanding its global presence,
Budget Car Rental - a unit of
Avis Budget Group Inc.
) - has swarmed the German rental services market by opening 100
new car rental locations since April this year. Moreover, the
company plans to open another 50 locations next month which will
bring the company's total number of rental facilities to 300 in the
The company revealed that the new Budget rental locations will
be operated by the licensees of Avis Car Rental. Currently Avis
Budget serves value-conscious business and leisure travelers at
most of the country's airports and at convenient locations in the
metropolitan areas. But now, the company has authorized licensees
to provide Budget rental services at particular local-market areas
Budget brand's lack of strong positioning in Europe compelled
Avis to expand its presence in Germany by this magnitude. Moreover,
the company is now focused on expanding its network in the Europe,
Middle East and Africa (EMEA) belt to better serve leisure
travelers seeking value.
The expansion of its footprint in Germany is expected to boost
the company's bookings as well as drive sustained, profitable
growth across the EMEA region. Earlier in late 2012, the company
tripled its rental locations in Spain in order to strengthen its
Budget services across Europe.
Budget Car Rental is a globally recognized car rental brand
serving more than 3,350 locations in over 120 countries. Under the
brand, Avis Budget operates as an industry leading vehicle rental
service provider targeting value-conscious travelers. The brand
also operates the second-largest truck rental business in the
United States, through a network of nearly 1,650 locations.
We believe that the recent strategic move will facilitate Avis
Budget to enhance the Budget brand loyalty by better utilizing the
licensee's established presence which will ultimately boost its top
Carrying a Zacks Rank #1 (Strong Buy), Avis Budget is a leading
vehicle rental company in North America, Australia and New Zealand.
Moreover, a formidable network of more than 10,000 rental locations
and 350,000 vehicles enables the company to strengthen its
well-established position in a highly competitive vehicle rental
Avis Budget follows a core global strategy of collaborating with
leading travel brands to expand its customer reach while creating
additional demand. In Mar 2013, Avis Budget successfully completed
the acquisition of the world's leading car sharing network company,
Zipcar Inc. The move enabled the company to extend its offerings
from car rental to car sharing, thereby helping it to compete with
United Rentals Inc.
Hertz Global Holdings Inc.
Ryder System Inc.
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