Avis’ Misplaced Optimism in Europe Muddles Car Rental Recovery
Photo Credit: A promotional photo of Avis' new app for customers. Facebook / Avis Budget Group
Skift Take
Car rental companies are preparing for the future of mobility, even as their recovery continues to be a slow process. Renting a car remains mostly annoying but the experience will improve soon thanks to apps and more customer-centric design.
Earlier this year, major public car rental companies showed that they aren't going quietly into the night as ridesharing and other mobility services continue their ascent worldwide. Revenue bounced upwards after years of weak pricing and fleets that had swelled far above demand.
That optimism, though, may prove to be short-lived for Avis Budget Group, which missed its earnings target in the third quarter of 2018 following difficulties driving business across Europe this summer, the company reported this week. Its net income dropped 13 percent year-over-year, with revenue rising just 1 percent.
The company blamed its shortcomings on travelers staying home to watch the World Cup and to avoid various heatwaves, along with increased travel by Europeans to North Africa and the Middl
