AVIS

Avis Rent A Car, Inc. is the largest Avis system franchisee in the world, with more than 600 rental locations in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Argentina, Australia, and New Zealand (the Avis system as a whole consists of about 4,200 rental locations in approximately 160 countries, and comprises the second-largest general use car-rental business in the world, trailing Hertz Corporation). Known throughout its history for quality service, Avis Rent A Car caters primarily to business travelers (who account for about 60 percent of the company's domestic revenue), with a resulting concentration on airport rental locations (from which about 85 percent of domestic revenue is derived). Avis, Inc.--the predecessor company to Avis Rent A Car--was purchased by hotel and real estate franchiser HFS Inc. in 1996. The following year, HFS created Avis Rent A Car, Inc. and sold about 75 percent of the new company to the public. In the process, HFS retained the Avis brand name and the Wizard reservation system, so Avis Rent A Car now licenses the use of the Avis name from HFS and uses the Wizard System through a long-term service agreement. Avis Airlines Rent-A-Car System was founded in 1946 by Warren E. Avis, a former Army Air Corps flyer. The owner of an automobile dealership in Detroit, Avis had the idea of providing car-rental services at airports, surmising that air travel would quickly become more popular than travel by rail. Using savings, dealership profits, and a $75,000 loan, he opened Avis Airlines Rent-A-Car System in two locations, at Willow Run Airport near Detroit and at Miami Airport in Florida. Avis's idea proved successful and his business grew quickly. Airports in New York, Chicago, Dallas, Washington, Los Angeles, and Houston were soon serviced by car-rental franchises licensed to use the Avis name. By 1948, Avis was nationally known. In that year, the company dropped the "airlines" designation from its name, expanding operations beyond airports to serve hotels and businesses in urban areas. During the next six years, Avis also expanded internationally. In addition to its 185 locations in the United States, Avis acquired 10 in Canada and one in Mexico, and established ties with car-rental agencies throughout Europe and the United Kingdom. Warren E. Avis sold the company in 1954 to Richard S. Robie, a car-rental system owner operating in New England. Robie encouraged continued expansion, introducing a one-way car-rental system and a company charge card. Although Avis had revenues of $4 million in 1956, Robie was plagued by problems of cash flow incurred during his expansion efforts, and was forced to sell the company. Avis's new owners, the Amoskeag Company and other investors, continued to foster its growth, creating a new entity, Avis, Inc. Business operations were consolidated through the formation of a wholly owned subsidiary, Avis Rent A Car System, Inc.; electronic data processing was introduced to facilitate the company's innovative corporate charge card billing system; car leasing was established; and the licensee system was extended to include markets in Austria, Belgium, Norway, and Spain. Keeping pace with technological advances, in 1972 Avis introduced the first and largest computerized information system to be used in a U.S. car-rental business. The Wizard System, renovated in 1979, 1984, and the early 1990s, made reservations and processed rentals, maintained preventive maintenance schedules for Avis's vehicles, and generated for auto manufacturers lists of customers who purchased Avis's used cars. The system also provided electronically transmitted billing reports for use with corporate accounts. The ESOP proved highly successful, boosting employee morale and prompting better service to consumers. When the plan went into effect, Avis's management introduced employee participation groups whose members included workers from all levels of the company. These groups met periodic