Avis Budget Group (ABG) had the “highest amount of commercial volume we have seen during the fourth quarter in company history and well above levels we achieved in 2019,” according to Joseph Ferraro, CEO, speaking on a fourth quarter 2022 earnings call.

Ferraro said the company’s commercial re-signings for 2022 are at approximately 100% and on average coming in at an increased price.

After strong showings in September and October, said Ferraro, the company saw “pretty good” corporate travel in November and December, with strength in the commercial sector remaining strong in January. He said ABG is seeing growth from aerospace, defense contracting, health care and technology companies.

Ferrero added that he is seeing more corporate travelers extending their rentals for blended trips. “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. And I think that has a heightened effect on demand.”

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ABG reported $2.77 billion in 2022 fourth-quarter revenue and net income of $424 million, year-over-year increases of 8% and 11%, respectively. Full-year net income was up 115% to $2.76 billion on revenue of $11.99 billion, which increased 29% from a year prior and was the best full-year revenue in the company's history.

Image: Courtesy of Avis