Back to top

Analyst Blog

One of the world's renowned car rental brands, Avis Budget Group Inc. (CAR - Analyst Report) has tied up with leading German automobile club Allgemeiner Deutscher Automobil Club (ADAC), expanding its customer base in Germany.

The multi-year partnership agreement with the German club will give nearly 18 million club members the access to Avis’ products, services and special offers. Avis will feature on the auto club’s email campaigns and official website, giving the club members the facility to reserve an Avis vehicle for business trips, leisure travel, when their car is in the shop or they need a rental van.

In addition to the website, the club members will also have the facility to book an Avis vehicle through an Avis reservation telephone number assigned for ADAC members.

In return for the promotion of its products, Avis will offer ADAC members a wide range of late-model, well-maintained cars, trucks and vans from a variety of manufacturers at discounts.

Avis follows a core global strategy of partnering with leading travel brands to expand its customer reach while creating additional demand. The company’s recent partnership in Germany testifies its commitment to its global strategic initiatives, which is based on the value of its brands and its ability to provide synergies to its partners that also benefit their brands and businesses.

Avis offers a wide range of premium vehicles and guarantees outstanding quality of service. Avis Germany already offers ADAC members its service at more than 300 locations across the country. Avis Germany is also the exclusive car rental partner of Porsche and features a variety of Porsche models for rent.

Avis Budget faces intense competition from other established players, such as Hertz Global Holdings Inc. (HTZ - Snapshot Report), Enterprise Rent-A-Car, Dollar Thrifty Automotive Group Inc. and Ryder System Inc. (R - Analyst Report).

Avis Budget has a Zacks #4 Rank, which translates into a short-term Sell rating. However, the company’s continuous effort of introducing new ideas and investments in technology up gradation, which should boost performance, as well as its focus on cost reduction, keep us positive for the long term. We maintain our long-term Outperform recommendation on the stock.

Please login to Zacks.com or register to post a comment.