Avis Budget takeover – what to expect

AS OF March 1, Avis now
operates and manages
both the Avis and Budget
brands in the southern African
market.
This follows the Bidvest
Group’s decision to give up the
licence to operate the Budget
brand at the end of last year,
when its agreement with the
Avis Budget Group (ABG) came
to an end, and rebrand as
Bidvest Car Rental (see TNW
February 25).
“Taking on the Budget brand
gives us the opportunity
to segment the market for
different needs and position
the Avis and Budget brands
to each of those needs,” says
Avis Executive: sales, Lance
Smith.
The Avis brand will be
positioned as a premium
brand – an “aspirational
brand”, says Lance. Budget
on the other hand, will target
a younger client, positioned as
the “fun, first experience” type
brand. The Budget brand will
be slightly cheaper and one
wouldn’t expect it to include all
the offerings that Avis does,
Lance says. “For example, Avis
customers will have a different
service experience; they’ll have
access to those cars parked
first and the vehicles with
lower mileage.”
Avis’s current infrastructure
(fleet, branch network,
call centre, etc.) will be
used to service the new
Budget customers. For the
moment, all kiosks – both
at the airport and off site
– will be dual branded, with
dedicated counters for Budget
customers. “Ideally, we would
have liked separate kiosks at
the airports but there is limited
space. All car-rental groups are
going to tender at the moment
and we are aiming to get more
space at the airport,” says
Lance.
Travel partners who have
customers with contracted
corporate accounts with
Bidvest Car Rental, previously
trading as Budget, will need
to take special care to ensure
that these customers are
booked using the new Bidvest
Car Rental GDS supplier code.
“We expect that people will
make mistakes and arrive
at the Budget kiosk, now
operated by Avis Budget Group,
but who have reservations with
Bidvest Car Rental. We have
trained our staff to deal with
these issues, who will refer
– even walk – clients to the
correct kiosk,” Lance says. “If
we receive queries for invoices
that are meant for Bidvest,
we’ll transfer these. We will do
what is in the best interest of
the customer.”
All Avis staff, including sales
people, will be dedicated to
both the Avis and Budget
brands. “This will be a new
experience and we expect it to
be a learning curve,” he says.
“We’re fortunate that we’re
taking over an established
brand, with existing systems
that the trade and customers
are familiar with.”
Over time, Lance expects the
new Budget brand will carve
a niche in the market, which,
he says, will be tough as the
market is flat. “Essentially,
Bidvest is the new brand in
the market and I expect they
will lose some market share,
particularly from inbound
as these customers won’t
recognise the Bidvest brand,
whereas the Budget brand is
already there and credible.
“The next couple of years will
be interesting,” he says.
What you need to know:
Budget will continue to
serve both corporate and
discretionary markets and
the GDS Supplier Code for
Budget will remain ZD.
New discretionary pricing
options for Budget are
available on both the GDS
and the Club Red website.
Budget discretionary rentals
will earn Club Red members’
Roses.
 The contact for Budget
reservations, customer care
and roadside emergency
remains 086 101 6622.
Avis’s current GDS helpdesk
has been upgraded to serve
both Avis and Budget.