Strong business demand has helped ground transport firm Avis Budget Group to achieve record-breaking results in 2022.
The US company’s total revenue increased by 29 per cent to $12 billion last year compared with 2021. Revenue was also 31 per cent higher than during the pre-Covid year of 2019.
This increase in sales helped Avis Budget to achieve a record net profit of $2.8 billion in 2022 - an increase of 115 per cent on the previous year.
Joe Ferraro, Avis Budget Group’s CEO, said: “Our fourth quarter demand was strong with our commercial business performing well above 2019 levels, and the leisure segment continuing its strong performance, especially over the holiday period. These trends have continued into the first quarter.”
Avis Budget’s international operations, outside the Americas, made adjusted ebitda of $560 million in 2022, up by 375 per cent on the previous year, which was “driven by increased pricing and return of demand” and represented a new record for the company.
International revenue rose by 44 per cent year-on-year during 2022 to reach $2.52 billion as rental days increased by 23 per cent to 43.1 million and revenue per day (RPD) went up by 31 per cent to $65.65.
The group’s results come a week after rival Hertz also cited “renewed” corporate demand for its own record-breaking annual performance in 2022.
During an earnings call, Ferraro said that corporate demand had remained strong in January with growth from sectors such as aerospace, defence, healthcare and technology. He also noted increased demand for trips combining business and leisure.
"I think bleisure is much more prominent than it was in the past," added Ferraro. "Someone who goes on a business trip and then decides to stay over a couple more days, I think that has increased, and that is structurally different than what we saw pre-pandemic. I think that has a heightened effect on demand.”