What changed in this filing

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Item 1. Business

2022-02-17 compared with 2021-02-17 · 85 added, 112 removed, 288 unchanged (41% of the section changed)

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and its subsidiaries.

“Avis,” “Budget,” “Budget Truck,” “Zipcar,” “Payless,” “Apex,” “Maggiore,” “Morini Rent,” “Turiscar,” “FranceCars” and “ACL Hire” refer to our Avis Rent A Car System, LLC, Budget Rent A Car System, Inc., Budget Truck Rental, LLC, Zipcar, Inc., Payless Car Rental, Inc., Apex Car Rentals, Maggiore Rent S.p.A., Morini S.p.A., Turiscar Group, AAA France Cars SAS and ACL Hire Ltd.

“Avis,” “Budget,” “Budget Truck,” “Zipcar,” “Payless,” “Apex,” “Maggiore,” “Morini Rent,” “Turiscar,” “FranceCars” and “ACL Hire” refer to our Avis Rent A Car System, LLC, Budget Rent A Car System, Inc., Budget Truck Rental, LLC, Zipcar, Inc., Payless Car Rental, Inc., Apex Car Rentals, Avis Budget Italia S.P.A., Morini S.p.A., Turiscar Rent A Car, S.A., AAA France Cars SAS and ACL Hire Ltd.

operations, respectively, and, unless the context otherwise requires, do not include the operations of our licensees, as further discussed below.

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Our brands offer a range of options, from car and truck rental to car sharing.

We license the use of the Avis, Budget, Zipcar and other brands’ trademarks to licensees in areas in which we do not operate directly.

We and our licensees operate our brands in approximately 180 countries throughout the world.

We generally maintain a leading share of airport car rental revenues in North America, Europe and Australasia, and we operate a leading car sharing network, as well as one of the leading commercial truck rental businesses in the United States.

Our brands and mobility solutions have an extended global reach with more than 10,600 rental locations throughout the world, including approximately 4,100 locations operated by our licensees.

We believe that Avis, Budget and Zipcar enjoy complementary demand patterns with mid-week commercial demand balanced by weekend leisure demand.

Positive momentum from fourth quarter 2019 continued into January and February 2020;

however, travel restrictions broadly implemented in response to the COVID-19 pandemic in March 2020 negatively affected reservations and revenue throughout the remainder of 2020.

By reducing fleet, matching staffing levels to demand and reducing operational costs, and pausing capital spending, among other actions, we proactively managed declining reservations and revenue.

As a result, for 2020, our global rental fleet, on average, totaled approximately 533,000 vehicles, 19% lower compared to 2019 and we completed approximately 22 million vehicle rental transactions worldwide, 47% lower compared to 2019.

Our revenue was approximately $5.4 billion, 41% lower compared to 2019.

We experienced longer lengths of rental compared to 2019, driven by an increase in monthly and leisure vehicle rentals.

Revenue generated from on-airport locations was approximately 50%, a 14% reduction compared to 2019.

We believe the range of options from our diversified brands enjoy complementary demand patterns with mid-week commercial demand balanced by weekend leisure demand.

The impact to our business from the COVID-19 pandemic subsided during 2021, as global travel demand improved.

On average, our global rental fleet totaled over 590,000 vehicles in fourth quarter 2021.

We completed more than 28 million vehicle rental transactions worldwide and generated total revenues of $9.3 billion during 2021.

Our brands and mobility solutions have an extended global reach with nearly 10,400 rental locations throughout the world, including approximately 4,000 locations operated by our licensees.

We categorize our operations into two reportable business segments:

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“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 21 to the Consolidated Financial Statements included in this Annual Report on Form 10-K.

We began 2020 with a focus on driving sustainable and profitable growth by leveraging differentiated brands and products, delivering margins from our established businesses, and positioning our company as a global leader in the mobility sector.

As we saw significant impacts on travel demand and the global economy from COVID-19, we proactively managed our business with cost removal and mitigation actions described above.

At the same time, we prioritized health and safety, and launched a coalition designed to enhance the cleanliness and disinfection of

our rental facilities and vehicles.

We also increased the availability of our app-based Mobile Select product and facilities with automated exit gates to provide our customers with contactless, self-service rental transactions.

For 2021, as travel demand starts to normalize and the global economy emerges from COVID-19, we expect our strategy to continue to focus on cost discipline, revenue growth and reinvestment aimed at allowing the Company to increase profitability.

Cost Discipline

Through cost discipline, we aim to improve our Adjusted EBITDA margin by focusing on fixed and variable cost controls as well as vehicle costs.

We believe we can increase our profitability by keeping fixed expenses to unavoidable or fundamentally necessary items and optimizing variable expense in controllable areas with clear metrics and visibility, permitting us to exit the COVID-19 crisis as a stronger, more adaptive company.

Revenue Growth

We seek to increase revenue through the delivery of a differentiated customer experience through technology and service.

We expect to continue to enhance the customer experience we offer, including through an increase in the locations that offer our Mobile Select product, which provides a differentiated customer choice model, our Avis mobile application, recognized as one of the best mobile travel rental car applications, connected cars, and continued improvement in customer service.

We also intend to drive revenue through continued enhancement of our operations in the off-airport, ride hail, package delivery and partnerships channels.

We also intend to reinvest in our business, including in our systems and platforms, and potential new business models, including expanding our risk vehicle dispositions through our direct-to-consumer sales channels, which include online sales channels and strategically positioned Avis vehicle retail car sale lots, and in the evolving mobility sector based on our leading brands, global operations and our fleet management capabilities.

We continue to believe that our company is well-positioned as a leader in the evolving mobility sector.

For 2022, we expect our strategy to drive a lower cost structure over the longer-term while maximizing revenue opportunities through continued focus on cost, revenue growth and investment.

Cost Optimization

By designing new processes and implementing new systems, we seek to provide enhanced visibility and accountability for fixed and variable costs in our operations, with particular focus on a number of cost categories, including, among others, fleet.

Core Revenue Growth

By focusing on fleet acquisition, the customer experience, contract signings with corporate accounts and partnerships, we seek to increase our revenue.

Our customer experience strategy is expected to focus on omni-

channel service and sales, and a personalized experience utilizing QUICKPASS, the Company’s branded customer experience, which includes, for the locations in which it is offered, an enhanced booking experience, vehicle choice, express exit and a self-service on rent experience, among other features.

Capital Investments

Investments in 2022 are expected to allow us to maximize our infrastructure to further revenue growth and cost efficiencies.

Investments for 2022 are expected to include investments in our systems, operations, customer experience and electric vehicle capabilities.

OUR BRANDS AND OPERATIONS

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*** Includes Budget Truck and Zipcar.

COVID-19 impacts have changed the composition of our revenues by market compared to prior year.

In 2019, the mix for revenues by market was 64% airport and 36% off-airport.

The Avis brand provides high-quality vehicle rental and other mobility solutions at price points generally above non-branded and value-branded vehicle rental companies and serves the premium commercial and leisure segments of the travel industry.

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The Avis mobile application also allows customers to track Avis shuttle buses to rental locations, find their vehicle, and locate nearby gas stations and parking facilities;

• Avis Preferred , a frequent renter rewards program that offers counter-bypass at major airport locations and reward points for every dollar spent on vehicle rentals and related products.

Avis Mobile Select, the newest feature on the Avis mobile application, allows Avis Preferred customers to select their specific car via their mobile device upon arrival, proceed directly to the vehicle, and utilize a unique code to exit via our automated Express Exit for a completely contactless rental experience;

• the Avis Select Series , a selection of luxury vehicles including Mercedes, Jaguars, Corvettes, and others;

• Avis Preferred , an award-winning frequent renter rewards program that offers counter-bypass at major airport locations and reward points for every dollar spent on vehicle rentals and related products.

Avis QuickPass, the newest feature on the Avis mobile application, allows Avis Preferred customers to select their specific car via their mobile device upon arrival, proceed directly to the vehicle, and utilize a unique code to exit via our automated Express Exit for a completely contactless rental experience;

• the Avis Signature Series , a selection of luxury vehicles including Mercedes, Jaguars, Corvettes, and others;

• invited or earned customer status levels allowing for upgrades and counter bypass;

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The Budget Truck rental business serves both the light commercial and consumer sectors.

The light commercial sector consists of a wide range of businesses that rent light- to medium-duty trucks, which we define as trucks having a

gross vehicle weight of less than 26,000 pounds, for a variety of commercial applications.

The light commercial sector consists of a wide range of businesses that rent light- to medium-duty trucks, which we define as trucks having a gross vehicle weight of less than 26,000 pounds, for a variety of commercial applications.

The consumer sector consists primarily of individuals who rent trucks to move household goods on either a one-way or local basis.

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Zipcar provides its members on-demand, self-service vehicles in reserved parking spaces located in neighborhoods, business districts, office complexes and college campuses, as an alternative to car ownership.

Members can reserve vehicles online, on a mobile device or over the phone, by the minute, hour or by the day, at rates that include gasoline, secondary insurance and other costs associated with vehicle ownership.

Members can reserve vehicles online or on a mobile device, by the minute, hour or by the day, at rates that include gasoline, secondary insurance and other costs associated with vehicle ownership.

We continue to offer our Zipcar Flex product in London providing for one-way rentals, including to and from Heathrow airport, which can be parked in public on-street spots in designated areas of the city.

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◦ Maggiore has a strong local reputation and benefits from a strong presence at airport, off-airport and railway locations and from the integration of our existing operations and rental fleet management expertise.

• Morini Rent, a leading vehicle rental brand in Italy, which offers rental of cars, vans and refrigerated vehicles and which we operate or license in approximately 50 rental locations throughout the country.

• Morini Rent, a leading vehicle rental brand in Italy, which offers rental of cars, vans and refrigerated vehicles and which we operate in approximately 50 rental locations throughout the country.

• FranceCars, which operates one of the largest light commercial vehicle rental fleets in France in approximately 75 rental locations and leverages our existing operational processes and local customer base.

• Turiscar, a leading vehicle rental brand in Portugal, which operates primarily in the corporate market, including light commercial vehicles, at more than 25 rental locations throughout the country.

• Turiscar, a leading vehicle rental brand in Portugal, which operates primarily in the corporate market, including light commercial vehicles, at approximately 25 rental locations throughout the country.

• ACL Hire, a provider of quality vehicle rental and maintenance services in the UK, with a strong focus on light commercial vehicles.

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Travel agents can access our reservation systems through all major global distribution systems, which provide information with respect to rental locations, vehicle availability and applicable rate structures.

Our Zipcar members may reserve cars by the minute, hour or by the day through Zipcar’s reservation system, which is accessible through the Zipcar website, through the Zipcar application on their smartphone or by phone.

Our Zipcar members may reserve cars by the minute, hour or by the day through Zipcar’s reservation system, which is accessible through the Zipcar website or through the Zipcar application on their smartphone.

We also use two-way SMS texting, enabling us to proactively reach out to members during their reservation via their mobile device to manage their reservation, including reservation extension.

Marketing and Sales

We support our brands through a range of marketing channels and campaigns, including traditional media, such as television and print advertising, as well as Internet and email marketing, social media and mobile device applications.

We market through sponsorships of major sports entities such as the PGA Tour, Pebble Beach, the New York Yankees, the Toronto Maple Leafs, Toronto Raptors, Toronto FC and AC Milan FC.

We also market through sponsorships of charitable organizations such as the Make-A-Wish Foundation.

We utilize a customer relationship management system that enables us to deliver more targeted and relevant offers to customers across online and offline channels and allows our customers to benefit through better and more relevant marketing, improved service delivery and loyalty programs that reward frequent renters with free rental days and car class upgrades.

We maintain strong links to the travel industry including marketing alliances with numerous marketing partners, such as American Airlines, and major hotel companies.

We support our brands through a range of marketing channels and campaigns, including traditional media as well as Internet and email marketing, social media and mobile device applications.

We market through sponsorships of major sports entities such as the PGA Tour and the New York Yankees.

We also market through sponsorships of charitable organizations.

We utilize a customer relationship management system that enables us to deliver more targeted and relevant offers to customers across online and offline channels and allows our customers to benefit through better and more relevant marketing, improved service delivery, including an expedited and contactless rental process, and loyalty programs that reward frequent renters with free rental days and car class upgrades.

We maintain strong links to the travel industry including marketing alliances with numerous marketing partners, such as airlines and major hotel companies.

In addition, we have developed relationships that provide brand exposure and access to new customers, including deals to provide vehicles to ride-hail drivers in cities across North America.

Approximately 50% of vehicle rental transactions in 2020 from our Company-operated Avis locations were generated by travelers who rented from Avis under contracts between Avis and their employers or through membership in an organization with which Avis has a contractual affiliation (such as AARP and Costco Wholesale).

This percentage is lower compared to the 2019 percentage of 60% as a result of impacts from the COVID-19 pandemic, which among other things, drove a decrease in commercial travel.

In 2021, approximately 60% of vehicle rental transactions originating from our Company-operated Avis locations were generated by travelers who rented from Avis under contracts between Avis and their employers or through membership in an organization with which Avis has a contractual affiliation (such as AARP and Costco Wholesale).

The Company offers Business Intelligence, an online portal complete with rental summary dashboards, visualizations and detailed reports that provides our corporate customers with insight into their program’s performance, giving them direct access to more data in a customer-facing portal offering useful data insights, including options to customize and schedule reports.

Avis also maintains marketing relationships with other organizations such as American Express, MasterCard International and others, through which we are able to provide their customers with incentives to rent from Avis.

Avis also maintains marketing relationships with other organizations such as Amazon, American Express, MasterCard International and others, through which we are able to provide their customers with incentives to rent from Avis.

Generally, Avis licensees also have the option to participate in these affiliations.

Additionally, we offer “Unlimited Rewards ® ,” an award-winning loyalty incentive program for travel agents, and Avis and Budget programs for small businesses that offer discounted rates, central billing options and rental credits to members.

Budget has contractual arrangements with American Express, MasterCard International and other organizations, which offer members incentives to rent from Budget.

We have contractual arrangements with American Express, MasterCard International and other organizations, which offer members incentives to rent.

Our Zipcar brand utilizes a diverse set of marketing and sales strategies to acquire and engage members, including digital marketing, email and in-app messaging, and social media engagement.

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We participate in a variety of vehicle purchase programs with major vehicle manufacturers.

As a result of the COVID-19 pandemic, we reduced our fleet purchases by 56% compared to 2019 as we sought to proactively manage our fleet size.

The following presents the approximate percentage of fleet purchases by manufacturer in 2020.

* Includes all manufacturers for which fleet purchases were less than 5%.

In 2021, we purchased vehicles from Toyota Motor Corporation, Stellantis N.V., Kia Motor Corporation, Volkswagen Group, Ford Motor Company, Nissan Motor Company and General Motors Company.

Fleet costs represented approximately 16% of our aggregate expenses in 2021.

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Our agreements with automobile manufacturers typically require that we pay more for program vehicles and maintain them in our fleet for a minimum number of months and impose certain return conditions, including vehicle condition and mileage requirements.

When we return program vehicles to the manufacturer, we receive the price guaranteed at the time of purchase and are therefore protected from fluctuations in the prices of previously-owned vehicles in the wholesale market.

When we return program vehicles to the manufacturer, we receive the price guaranteed at the time of purchase and are therefore protected from fluctuations in the price of previously-owned vehicles in the wholesale market.

In 2021, approximately 37% of the vehicles we disposed of were sold pursuant to repurchase or guaranteed depreciation programs.

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Fleet Dispositions

We dispose of our risk vehicles largely through resale and alternative disposition channels, including direct-to-consumer, online auctions, and direct-to-dealer sales, as well as through more traditional automobile auctions.

We dispose of our risk vehicles largely through alternative disposition channels, including direct-to-consumer, online auctions, and direct-to-dealer sales, as well as through more traditional automobile auctions.

Alternative disposition channels provide the opportunity to increase vehicle sales prices and reduce relevant fleet costs compared to selling vehicles at auctions.

We have continued to expand the scope of our direct-to-consumer vehicle sales program, growing sales of our risk vehicles directly to consumers through our Ultimate Test Drive (UTD) online program and our approximately 15 physical retail locations.

Both our UTD program and retail locations offer customers the ability to purchase well-maintained, late-model rental vehicles from our fleet.

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Fleet Utilization

In 2020, our average quarterly vehicle rental fleet size ranged from a low of approximately 440,000 vehicles in fourth quarter to a high of approximately 610,000 vehicles in first quarter.

Average fleet utilization for 2020, which is based on the number of rental days (or portion thereof) that vehicles are rented compared to the total amount of time that vehicles are available for rent, ranged from approximately 35% in second quarter to approximately 62% in first and fourth quarters.

In 2021, our average quarterly vehicle rental fleet size ranged from a low of approximately 412,000 vehicles in first quarter to a high of approximately 600,000 vehicles in third quarter.

Average fleet utilization for 2021, which is based on the number of rental days (or portion thereof) that vehicles are rented compared to the total amount of time that vehicles are available for rent, ranged from approximately 67% in first quarter to approximately 72% in third quarter.

Our average car rental fleet size and utilization are typically highest during the third quarter of each year.

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We also continuously track customer-satisfaction levels by sending location-specific surveys to recent customers and utilize detailed reports and tracking to assess and identify ways that we can improve our customer service delivery and the overall customer experience.

Our location-specific surveys ask customers to evaluate their overall satisfaction with their rental experience and the likelihood that they will recommend our brands, as well as key elements of the rental experience.

Our location-specific surveys ask customers to evaluate their overall satisfaction with their rental experience and the likelihood that they will recommend our

brands, as well as key elements of the rental experience.

Results are analyzed in aggregate and by location to help further enhance our service levels to our customers.

During 2020, in response to COVID-19, we launched the “Avis Safety Pledge” and “Budget Worry-Free Promise,” designed to keep our customers and employees safe through a partnership with RB, the maker of Lysol, to enhance the cleanliness and disinfection of our rental facilities and vehicles.

In 2020, as a response to COVID-19, we launched the “Avis Safety Pledge” and “Budget Worry-Free Promise,” designed to keep our customers and employees safe through a partnership with RB, the maker of Lysol, to enhance the cleanliness and disinfection of our rental facilities and vehicles.

RB is also part of a coalition we formed with Hip Hop Public Health, a national nonprofit organization that creates engaging content to drive behavioral change and supplements our employee training for consistent, responsible habits and to optimize the effectiveness of our cleaning protocols.

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Concessions are typically awarded by airport authorities every three to ten years based upon competitive bids.

Our concession

agreements with the various airport authorities generally impose certain minimum operating requirements, provide for relocation in the event of future construction and provide for abatement of the minimum annual guarantee in the event of extended low passenger volume.

Our concession agreements with the various airport authorities generally impose certain minimum operating requirements, provide for relocation in the event of future construction and provide for abatement of the minimum annual guarantee in the event of extended low passenger volume.

OTHER BUSINESS CONSIDERATIONS

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Hertz Global Holdings, Inc., which operates the Hertz, Dollar and Thrifty brands;

Europcar Mobility Group, which operates the Europcar, Goldcar, InterRent, Buchbinder and Ubeeqo brands;

Europcar Mobility Group, which operates the Europcar, Goldcar, InterRent, Buchbinder, Fox Rent A Car and Ubeeqo brands;

We also compete with smaller local and regional vehicle rental companies for vehicle rental market share, and with ride-hailing companies largely for short length trips in urban areas.

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Our Budget Truck operations in the United States competes with several other local, regional and nationwide truck rental companies including U-Haul International, Inc., Penske Truck Leasing Corporation, Ryder Systems, Inc.

and Enterprise.

and Enterprise Truck Rental.

INSURANCE AND RISK MANAGEMENT

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In addition, we provide our customers with third-party property damage insurance through an unaffiliated third-party insurer.

We retain a share of property damage risk through AEGIS Motor Insurance Limited.

We retain a share of property damage risk through local deductibles.

AEGIS Motor Insurance Limited reinsures certain risks through an unaffiliated company, which limits its liabilities.

We insure the risk of liability to third parties in Argentina through unaffiliated insurers.

We offer our U.S.

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When a customer elects to purchase supplemental liability insurance or other optional insurance related products, we typically retain economic exposure to loss, since the insurance is provided by an unaffiliated insurer that is reinsuring its exposure through our captive insurance subsidiary, Constellation Reinsurance Co., Ltd.

Additional personal accident insurance offered to our customers in Europe and Australasia is provided by a third-party insurer, and primarily reinsured by our Avis Budget Europe International Reinsurance Limited subsidiary.

Additional personal accident insurance offered to our customers in Europe is provided by a third-party insurer, and primarily reinsured by our Avis Budget Europe International Reinsurance Limited subsidiary.

We also maintain excess insurance coverage through unaffiliated carriers to help mitigate our potential exposure to large liability losses.

We otherwise bear these and other risks, except to the extent that the risks are transferred through insurance or contractual arrangements.

bear these and other risks, except to the extent that the risks are transferred through insurance or contractual arrangements.

OUR INTELLECTUAL PROPERTY

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and other countries.

CORPORATE SOCIAL RESPONSIBILITY

At Avis Budget Group, we take our responsibilities as a corporate citizen seriously.

We are aware of how our actions can benefit the community and are sensitive to the needs of the environment, our customers and our employees.

Our practices in corporate social responsibility focus on our people, our communities, and our planet.

We are committed to the highest standards of ethics, integrity and compliance in all respects of our business.

We believe that our success has its foundation in how we treat our employees.

In concert with our core values, we seek to foster an environment where communication among our employees is open, honest, and respectful;

performance is recognized;

growth is encouraged;

and accomplishments - individual and collective - are celebrated.

We also seek to support the well-being and development of the people we employ and the communities in which they work.

Our Communities :

We help and encourage our employees to connect to the communities in which they reside.

Through our “Inspire the World” program we challenge our employees to dedicate an hour of their time to a local cause close to their hearts.

As well as empowering our employees to volunteer in their local communities, we are committed to helping a variety of causes and charities that support people in crisis situations and who live with life-threatening illnesses.

Those we support were chosen because our employees told us that charities that support women and children are the most important to them.

• Being Prepared When Disaster Strikes:

Over the past seventy years, we have developed strong competencies in responding to business disruptions.

Whether the disruption is man-made, an extreme weather event or a global health crisis, our business continuity programs are central to how we respond in times of crisis.

Our program’s focus is on preparing and protecting our people, property and infrastructure.

We utilize an “all hands on deck” approach within our incident management and command structure to ensure that we respond as rapidly and effectively as possible.

We have also developed longstanding partnerships with leading national disaster response agencies, which strengthen our ability to provide support to affected customers, employees and communities.

ENVIRONMENTAL, SOCIAL & GOVERNANCE (“ESG”)

We recognize our role as one of the world’s leading mobility solutions providers.

As a result, we are focused on supporting the transition to a low-carbon economy and employ practices designed to promote a more fair, just and equal workplace and community.

The Environment:

As a responsible corporate citizen, we are committed to monitoring, measuring and managing our environmental impact, and working to reduce it where practicable on an ongoing basis.

This enables us to meet customer expectations while building a resilient business for generations to come.

The following illustrates these commitments:

• Environmental Footprint:

Through our continuous improvement approach, we work proactively to address the environmental challenges that impact our business.

Guided by our Environmental Policy, we focus on the environmental issues most important to us and our stakeholders.

We are committed to offering safe and low-carbon transportation solutions:

• Greenhouse Gas Emissions:

As our corporate and leisure customers become increasingly aware and concerned about pollution and congestion caused by vehicles, we aim to provide sustainable transportation solutions by leveraging connected vehicle technology and introducing more fuel efficient and low emission vehicles.

• Sustainable Operations:

We are driving the efficiencies needed to reduce our environmental impact and enhance the sustainability of our operations.

These are mainly driven by improvements on vehicle preventive maintenance, the incorporation of green building practices and by complying with all environmental regulations.

These are mainly driven by improvements in vehicle preventive maintenance, the incorporation of green building practices and by complying with all environmental regulations.

• Carbon Offset Program:

We are committed to helping educate both consumers and travel professionals on their environmental impact from rental car use and on how that can be reduced.

We also work closely with our corporate customers to help them achieve their environmental impact reduction targets through our carbon offset program.

We work closely with our corporate customers to help them achieve their environmental impact reduction targets through our carbon offset program.

• Sustainable Fleet:

We have been actively anticipating and driving changes in mobility.

Connected and autonomous vehicles are likely to become a common feature worldwide, along with an increase use of electric and shared vehicles, which is why we’re building on our core experience, data intelligence and technology to develop entirely new lines of business and extend our offering and capabilities for our customers, businesses and cities.

We are actively anticipating and driving changes in mobility.

Connected and autonomous vehicles are likely to become a common feature worldwide, along with an increase use of electric and shared vehicles, which is why we are building on our core experience, data intelligence and technology to develop entirely new lines of business and extend our offering and capabilities for our customers, businesses and cities.

Our efforts include:

◦ Car Sharing:

Our Zipcar car sharing technology was designed and specifically built for our car sharing business and has been continually refined and upgraded.

With more than one million members worldwide, Zipcar is taking thousands of vehicles off the road and reducing congestion.

In addition, car sharing members report notable reductions in their own driving behavior after joining.

Zipcar continually improves its car sharing technology, which includes its mobile member app, in-vehicle telematics hardware, and reservation, fleet management and community management systems.

Zipcar’s technology platform is key to providing a successful self-service experience for its members and effectively managing a distributed fleet of vehicles and associated parking locations.

With more than one million members worldwide, Zipcar is helping reduce traffic and congestion.

◦ Connected Vehicles:

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We offer our customers the opportunity to choose from a wide variety of vehicles, including hybrids, electric or fuel-efficient vehicles at almost all of our locations.

Our fleet consists primarily of vehicles from the current and immediately preceding model year - this ensures the highest possible standards of air emissions control.

Our hybrid fleet is one of the largest in our industry with approximately 21,000 hybrid vehicles globally .

Our most recent Corporate Social Responsibility Report (“CSR”) is available on the Company’s website.

fleet consists primarily of vehicles from the current and immediately preceding model year - this ensures the highest possible standards of air emissions control.

We believe that our success has its foundation in how we treat our employees.

We seek to foster an environment where communication among our employees is open, honest, and respectful;

performance is recognized;

growth is encouraged;

and accomplishments - individual and collective - are celebrated.

We also seek to support the well-being and development of the people we employ and the communities in which they work.

Giving Back :

We are a global company with local reach in numerous communities around the world.

Whether we work individually or as a team, doing the right thing and supporting our communities helps employees feel their work is more than just a job, and makes them feel proud to be part of the Avis Budget Group family.

As well as encouraging our employees to volunteer in their local communities, we are committed to supporting a variety of causes and charities that aid people in crisis situations.

Supporting Community Resilience :

Over the past 70 years, we have developed strong competencies in responding to business disruptions.

Whether the disruption is man-made, an extreme weather event or a global health crisis, our business continuity programs are central to how we respond in times of crisis.

Our program’s focus is on preparing and protecting our people, property and infrastructure.

We utilize an “all hands on deck” approach within our incident management and command structure to ensure that we respond as rapidly and effectively as possible.

We have also developed longstanding partnerships with leading national disaster response agencies, which strengthen our ability to provide support to affected customers, employees and communities.

Our most recent ESG Report is available on the Company’s website.

The information contained on the Company’s website is not included in, or incorporated by reference into, this Annual Report on Form 10-K.

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We run numerous recruitment programs that aim to give back to our local communities.

Our Talent Acquisition teams have strong relationships

with organizations that help us reach a diverse pool of candidates including LGBTQ+ and those with physical or mental disabilities.

Our Talent Acquisition teams have strong relationships with organizations that help us reach a diverse pool of candidates including LGBTQ+ and those with disabilities.

We believe that our employees possess a wealth of knowledge that could and should be shared with others.

We have a wealth of established learning and talent programs that we make available to our employees and in 2019 we launched a bespoke digital learning platform that has transformed the way we produce, manage and share learning resources.

We have a wealth of established learning and talent programs that we make available to our employees, including a digital learning platform that has transformed the way we produce, manage and share learning resources.

Diversity, Inclusion and Belonging

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As an equal-opportunity employer, we are proud to provide an inclusive workplace that embraces and celebrates demographic, cultural and lifestyle differences.

We strive to have a diverse and inclusive work environment where co-workers feel valued for their uniqueness, recognized for their diverse talents, and where they can bring their whole selves to work.

We have created employee resource groups (“ERGs”), company-sponsored group comprised of employees from diverse backgrounds that advocate equality, opportunities for advancement, and facilitate discussion around best practices and resources to more targeted cultural and racial understanding and diversity.

We strive to have a diverse and inclusive work environment where employees feel valued for their uniqueness, recognized for their diverse talents, and where they can bring their whole selves to work.

We have created employee resource groups (“ERGs”) to advocate for equality, provide opportunities for advancement, and facilitate discussion around best practices and resources to advance more targeted cultural and racial understanding and diversity.

These ERGs provide a space where employees can foster connections and develop in a supportive environment.

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We currently collect incident rates to track safety performance for our United States operations, which represents our largest employee population.

In addition to numerous proactive actions taken to ensure employee safety, our focus is also evident in our response to the COVID-19 pandemic, including the launch of the Avis Safety Pledge and the Budget Worry-Free Promise to help provide a safe and convenient rental experience by enhancing our cleaning protocols.

We contracted with a council of medical professionals to provide feedback and consultation on our safety protocols and practices.

In addition, we partnered with an organization that creates innovative behavioral based training to ensure our staff is properly skilled and educated on safety related to the pandemic.

In response to COVID-19, we have also added work-from-home flexibility for employees who can work remotely;

Our focus is also evident in our response to the COVID-19 pandemic, including the launch of the Avis Safety Pledge and the Budget Worry-Free Promise to help provide a safe and convenient rental experience by enhancing our cleaning protocols and training on safety procedures related to the pandemic.

We have also added work-from-home flexibility for employees who can work remotely;

implemented temperature screening of employees at the majority of our locations in the United States;

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We will continue to provide our staff with hand sanitizer, gloves and masks and conduct daily health self-assessments before shifts where we are permitted to do so.

We will continue to offer an enhanced sick leave policy and offer employees COVID-19 testing free of charge.

We take a holistic approach to well-being.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business