Consistent with its goal of making its presence felt globally,
Budget Car Rental - a unit of
Avis Budget Group Inc.
) - has swarmed the Spanish rental services market by opening 60
new car rental units through the first half of 2012. This
expansion brought the company's Spanish Budget locations to 99.
AVIS BUDGET GRP (CAR): Free Stock Analysis
DOLLAR THRIFTY (DTG): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
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Budget brand's lack of strong positioning in Europe compelled
Avis to expand its presence in Spain by this magnitude. As a
result, the company is now emphasizing on expanding its network
in the Europe, Middle East and Africa (EMEA) belt to better serve
leisure travelers seeking value.
Looking ahead, the company anticipates opening 25 more facilities
in Spain through the rest of 2012. The expansion of its footprint
in Spain is expected to boost the company's bookings as well as
drive sustained, profitable growth across the EMEA region.
Budget Spain serves value-conscious business and leisure
travelers' at 34 major airports and in convenient locations in
metropolitan areas, including Barcelona, Madrid, Palma de
Mallorca and Seville. Budget's car rental fleet in Spain offers
quality, well-maintained vehicles with manual and automatic
transmissions from a variety of manufacturers. Budget Spain also
offers travelers global positioning system (GPS) navigation
devices, child safety seats, vehicle damage coverage options and
personal property protection packages.
Budget Car Rental is a globally recognized car rental brand
serving more than 3,000 locations in over 120 countries.
Avis Budget Group is the leading vehicle rental company in North
America, Australia and New Zealand. A formidable network of more
than 10,000 rental locations and 350,000 vehicles enable the
company to strengthen its well-established position in a highly
competitive vehicle rental industry.
The company faces intense competition from other established
players, such as
Hertz Global Holdings Inc.
), Enterprise Rent-A-Car,
Dollar Thrifty Automotive Group Inc.
Ryder System Inc.
We maintain our long-term 'Neutral' recommendation on Avis
Budget. However, the company has a Zacks #4 Rank, implying a
short-term Sell rating.