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Avis' Brand Expands in Colombia

Zacks Equity Research

Budget Car Rental, a brand owned and operated by Avis Budget Group Inc. (NASD:CAR), is expanding its operations in Colombia, with the aim to serve the business and leisure customers in the Latin American country. The company, which operates through licensee Budget Colombia in Colombia, has now opened in two new service points in the Republic of Colombia at El Dorado International Airport in Bogota and at Carrera 100 in downtown Bogota.

The company’s latest service points will rent out a wide array of late-model cars, including the minivan and SUV, to the business and leisure travelers in Colombia. Bogota, which has one of the busiest airports in Latin America, possesses ample scope for expansion for car rental companies offering value-conscious car rental option to customers due to the huge passenger traffic it attracts.

Prior to this, Budget offered its customers in Colombia only automatic-transmission vehicles manufactured by Ford and Kia. Additionally, the company offers its customers benefits like global positioning system (GPS) navigation devices, child safety seats, vehicle damage coverage options and personal property protection packages.

Budget Car Rental is a well-known car rental brand operating in about 3,150 locations in over 120 nations. Under the brand, Avis Budget operates 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 1,900 locations.

Avis Budget Group is the 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 industry.

Avis 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. This strategic move has enabled the company to extend its offerings from car rental to car sharing, thereby helping it to compete with peers like United Rentals Inc. (NYSE:URI), Hertz Global Holdings Inc. (NYSE:HTZ) and Ryder System Inc. (NYSE:R).

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