Make your money go further for just 25p per day

PREMIUM

Investors in car rental giant Avis Budget should drive carefully

24/06/2019 · Avis Budget (CAR) 

Investment Ideas Travel US

Avis Budget car rental pick up at Heathrow Airport

Avis Budget is one of two car rental companies which dominates the market. Its closest peer, Hertz has endured a difficult few years as it attempts a major turnaround. By contrast, Avis has ticked along steadily, despite the challenging market. In this piece, we'll be asking whether now is the right time to consider investing in this global brand.


With summer holidays on the horizon, many of us will be planning to rent a car while we're away. Anecdotal evidence suggests the rental process triggers a sense of dread for many customers. Will we be surprised at the rental counter with an unexpected-but-essential extra fee? And will a surprise post-rental charge appear on our credit card weeks after we return home?

On the other hand, the big rental firms form a vital part of global travel infrastructure. This seems unlikely to change, even if the way in which mobility services are delivered is evolving.

The two big listed US-listed car rental operators are Avis Budget (US: CAR), which operates Avis, Budget and car-sharing firm Zipcar and Hertz Global Holdings (US: HTZ), which operates the Hertz, Dollar and Thrifty brands. Hertz is still mired in a difficult turnaround, but Avis has been delivering consistent performances in recent years. Despite this, the firm's shares have underperformed the S&P 500 by more than 20% over…

Continue reading this article…

With a subscription
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team
With credits
Get access to our premium content for as little as £3.20 per article.
  • Only pay for what you want to read
  • Easy credit payment system
  • Access our excellent Premium content

Previous article Next article

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

START FREE TRIAL

More on Avis Budget

Investors in car rental giant Avis Budget should drive carefully

24/06/2019 · Companies Analysed

Avis Budget is one of two car rental companies which dominates the market. Its closest peer,…