NEW YORK -- Both Avis and Budget saw increases in rental day volume during 2004's fourth quarter -- 3% and 18%, respectively. But price reductions to compete with rental brands serving leisure travelers offset those gains somewhat, Cendant Corp. reported in its quarterly report.

Moreover, Cendant noted in the report, higher industry fleet levels, spurred by greater manufacturer incentives, also contributed to lower pricing. Avis' pricing dipped 2% while Budget's fell 8%.

Avis and Budget are part of Cendant Car Rental Group.

Avis' total revenue for the fourth quarter was $640.5 million, compared to $627 million in 2003's fourth quarter. Avis sold 13.73 million rental days, compared to 13.27 million in 2003's fourth quarter.

Avis' daily dollar average was $41.17, compared to $42.08 during the same period in 2003. The average length of rental for the quarter was 3.55 days, compared to 3.53 days in 2003's fourth quarter.

Budget's fourth-quarter car revenue totalled $420.3 million, compared to $378.54 million in 2003's fourth quarter. Truck rental revenue totalled $125.35 million, compared to $110.34 million during the same period the previous year. Budget sold 7.16 million rental days, compared to 6 million in 2003's fourth quarter. The daily dollar average was $34.72, compared to $37.66 in 2003's fourth quarter. The average length of rental was 4.03 days, compared to 3.98 days a year earlier.

News Source:

Auto Rental News


Back to Industry News Index