Avis Budget Group Inc. (CAR) and PortAventura, a popular theme park and resort in Spain, have collaborated, making Avis Car Rental and Budget Car Rental the latter’s official car renting partners. The two parties entered into one-of-a-kind concession and marketing agreement that extends over several years via which Avis Budget will provide vehicle services at Hotel PortAventura.
As part of the deal, Avis and Budget brands will feature on Port Aventura’s official website, offering special cash discounts on car rental services. Customers availing the Avis and Budget offers will also enjoy discounts on park admission and hotel stays.
Situated in Salou, Catalonia, PortAventura is Spain's first theme park that became operational from 1995. Over the years, the park has broadened to include an aquatic park, three golf courses, four 500-room hotels and a convention center with a capacity for accommodating 4,000 people.
A tourist destination for natives from across Europe as well as theme park enthusiasts around the world, PortAventura is now recognized as the premier theme park in Spain in terms of revenues, visits and profitability. It is also one of the leading parks in southern Europe in terms of footfall. The Shambhala, Europe's highest, fastest and longest-descending roller coaster, is housed in PortAventura.
Avis Budget’s association with one of the continent’s leading tourist attractions is expected to be especially favorable for customers. Simultaneously, this tie-up will help Avis proceed on its strategic initiatives to build up its global presence.
In one such similar effort, Budget Car Rental – a unit of Avis Budget Group Inc. –swarmed the Spanish rental services market by opening 60 new car rental units through the first half of 2012. This expansion brought the company’s Spanish Budget locations to 99.
Avis Budget Group is the leading vehicle rental company in North America, Australia and New Zealand. A formidable network of more than 10,000 rental locations and 350,000 vehicles enable the company to further strengthen its well-established position in a highly competitive vehicle rental industry.
The company faces intense competition from other established players, such as Hertz Global Holdings Inc. (HTZ), Enterprise Rent-A-Car and Ryder System Inc. (R).
We maintain our long-term ‘Underperform’ recommendation on Avis Budget. However, the company has a Zacks #3 Rank, implying a short-term Hold rating.