Avis Budget Group, Inc. (CAR - Free Report) , through its Avis brand, boosted its long-term marketing association with Universal Parks and Resorts with the opening of vehicle rental services at five Loews Hotels of Universal Orlando Resort. This extended partnership was announced yesterday.
The five Loews Hotels to be provided with Avis’ high-quality vehicle rental services are Loews Portofino Bay Hotel, Loews Royal Pacific Resort, the Hard Rock Hotel Orlando, Loews Sapphire Falls Resort and Universal’s Cabana Bay Beach Resort. Additionally, an Avis counter is scheduled to be opened at Universal’s Aventura Hotel, this summer.
Universal Parks and Resorts, also known as Universal Studios Theme Parks or Universal Theme Parks, is the theme park subsidiary of NBCUniversal, which is owned by Comcast Corporation (CMCSA - Free Report) . The Universal Orlando Resort, commonly known as Universal Orlando, is a subsidiary of Universal Parks and Resorts.
Avis Budget and Universal Parks and Resorts’ alliance goes back a long way. On availing Avis’ vehicle rental services, guests of Universal Parks and Resorts are offered special packages coupled with attractive discounts. Additional benefits are provided through Avis customer channels, which include services from-and-to airport locations of Orlando and Hollywood. Advertisements of Avis vehicles also appear on the online booking portal of Universal Parks & Resorts.
The Avis brand accounts for almost 58% of Avis Budget’s total revenues and is one of the world’s leading providers of vehicle rental services. In 2017, the brand reported $5.2 billion in revenues from company-operated Avis locations, globally. Based on the type of customers, it earned 49% of revenues from the commercial customers, with the remaining derived from the leisure segments of the travel industry. Market-wise, it generated around 70% of revenues from on-airport locations and 30% from off-airport locations.
While Avis Budget already enjoys a dominant position in the airport car rental business, the launch of these onsite hotel rental locations in Orlando should help the company increase its off-airport presence. Stephen Wright, senior vice president, global travel, partnerships and associations at Avis Budget stated, “Universal’s theme parks in Orlando and Hollywood are popular attractions in the United States visited by travelers the world over.”
Considering the brand’s overall robust growth, Avis Budget is focused on further strengthening its Avis brand with continuous investments in technology and enhancement of customer services with different applications. Further, the company is highly optimistic about its Avis brand benefiting from the opportunities in mobility solutions and vehicle-related technologies. Meanwhile, the comeback of Avis brand in Japan, after a gap of 14 years, is a major positive, which should help the company expand globally and boost its top line.
Zacks Rank & Price Performance
Currently, Avis Budget is a Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the last year. Shares of Avis Budget have returned 72.5%, significantly outperforming the industry’s gain of 3.4%.
Other Stocks to Consider
Some other top-ranked stocks in the broader Business Services sector include Automatic Data Processing (ADP - Free Report) , Accenture plc (ACN - Free Report) and Broadridge Financial Solutions Inc. (BR - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy).
The long-term expected earnings per share growth rates for Automatic Data Processing, Accenture and Broadridge are 11%, 10% and 10%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>