Avis: Still Trying Harder!


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Case Details:

Case Code : BSTR048
Case Length : 15 Pages
Period : 1999 - 2003
Organization : Avis
Pub Date : 2003
Teaching Note :Not Available
Countries : USA
Industry : Car rental

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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EXCERPTS

The Era of Growth

In 1989, Avis launched the 'Avis Cares' program to improve customer satisfaction levels. The program primarily aimed at ensuring the safety of customers as well as of the employee-owners. It included offering services that would help Avis customers enjoy a 'safe and stress free' trip to their destinations.

The services offered by Avis were Local Travel Safety Trip Sheet (also known as the Avis Cares Driving Information Card), Child Safety and Booster Seats, Avis Vehicle Operating Guide, Route Navigator Directions and Other Local Maps, WeatherFax, Wireless Phones and Avis Quick City Guide (Refer Table II for details). Throughout the early 1990s, Avis kept on improving the Avis Cares program by adding more features to it. The company introduced the Avis Cares Concierge Service, which supplied information to customers about restaurants, sporting events, shows and local events and points of contact. The company also undertook the responsibility of arranging dinner reservations and purchasing air tickets. Customers could avail of this service by calling an exclusive number for Avis' US customers...

Avis Drives The Extra Mile

In 2000, Avis spruced up its services by introducing Avis InterActive, an Internet-based information management system for fleet management. The company was once again the first in the car rental industry to have done so. In 2001, Cendant Corporation bought all the outstanding shares of Avis Group Holdings that it did not already own for $ 937 million.

Following this, Cendant renamed the company Avis Rent A Car System, Inc. Avis received considerable recognition in the corporate as well as leisure sector in 2001. It was named the number one company by leading business publication, Fortune, in the Automotive Retailing Services category in its February 2001 list of the 'Most Admired Companies' in the US. Also, Avis tied (with National, another car rental company) for the first place in the JD Power and Associates Ranking in the business traveler satisfaction category. The 2001 Domestic Airport Rental Car Customer Satisfaction Study conducted by JD Power and Associates revealed that Avis performed better than other companies like Hertz and Budget in terms of critical passenger pickup process and reservation process...

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