Loading ...Despite the economic slowdown, high oil prices, potential stagnation in the travel industry and increased operating costs, Avis Rent-A-Car anticipates that it will experience healthy growth over the course of the year. The rental giant did, however, observe that its level of growth in Spain is likely to be somewhat slower than previously thought, but other than that, the current outlook is in line with what Avis had originally projected.
Avis officials noted that the company had performed very well during the first four months of the year, with especially impressive growth during the Easter holiday. The only exception was Spain, where the car hire industry appears to have stagnated. Yet there are some problems on the horizon for Avis, and one of the largest ones is the continued strength of the euro. Avis noted that the strong European currency, especially in relation to the dollar and sterling, has started to have an impact on trading, especially in terms of the number of American clients renting cars in Europe, as well as Britons hiring vehicles while on the continent.
Another difficulty for the firm has to do with rapidly rising fleet maintenance costs and Avis has already projected higher than anticipated expenditures in this field. The problem has been that the used car market-especially in the UK and Spain-has shown some weakness, and this has resulted in less revenue for the firm than previously expected.
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