In the third quarter, Avis Budget Group's commercial pricing
held steady year over year for the first time in more than two years, although
pricing on its largest accounts remains "very competitive," president
and CEO Larry De Shon said in an earnings call.
Overall pricing in the Americas rose 2 percent as rental day
volume rose 1 percent. Year-over-year commercial pricing remained flat after
having decreased every quarter since the first quarter of 2015, he said. De
Shon attributed the stabilization to a shifting mix of corporate business, which
has brought in more that are paying a higher rate per day. "There's no
change in the pricing environment [for large accounts]," De Shon said.
"It's very competitive, and we continue to be aggressive and make sure we
keep accounts."
Despite a $5 million hit related to hurricanes Harvey, Irma
and Maria, Americas revenue increased 1 percent year over year to $1.8 billion
in the quarter. Outside the Americas, pricing declined 1 percent and rental
days increased 13 percent. The volume growth benefited from Avis' December 2016
acquisition of FranceCars. International revenue grew 9 percent year over year
to $913 million.
Avis
Budget reported a net income of $245 million for the quarter, up 17 percent
compared with the third quarter of 2016.
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