Avis Budget Group revenue increased 5 percent year over year to a fourth-quarter record of $2.2 billion, driven partially by commercial volume growth.
In the Americas, revenue increased 9 percent year over year to $1.5 billion, with rental days up 8 percent and revenue per day up 1 percent. Interim CEO Joe Ferraro said commercial business volume was up 4 percent year over year in the quarter, though pricing in the segment remained "competitive."
The company is seeing growth in ancillary revenue, however, particularly from a recently added bill-splitting option that enables business travelers to separately bill themselves for extended leisure rental days or amenities and upgrades not covered by corporate policies.
Overall, fourth-quarter ancillary revenue in the Americas were up 11.5 percent year over year, Ferraro said. One growing source has been a new electronic toll product that charges a flat fee for the rental rather than a per-day fee. That feature currently is available only in a few states but is set to expand this year, he said.
"Customers like it, especially commercial customers, who have an all-in-one bill now they can expense," Ferraro said.
Outside of the Americas, revenue declined 2 percent year over year to $532 million in the fourth quarter. Rental days were up 1 percent year over year, and revenue per day was up 3 cents to $47.25, excluding currency exchange rate effects.
Avis Budget Group reported net income of $142 million for the fourth quarter, up from $13 million in the fourth quarter of 2018. For the full year, Avis Budget's net income was $302 million, up from $165 million in 2018.
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