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2012
Hope is Not a Strategy
“When someone says, `I hope it’s not going to be a
problem,’ or `I hope this problem is going to solve itself,’
that’s a strong signal to me that it’s time to come up with
a plan of action,” Wyshner remarks. “Hope is not a strategy.”
He explains that in the past few years, those signals were
coming through loud and clear. Call it the “perfect storm“
for a vehicle rental company.
The world markets were in deep
recession. Two of the largest auto
suppliers – General Motors and
Chrysler — were headed toward
bankruptcy, and the entities Avis
Budget had historically counted on
to finance its ever-growing fleet had
ground to a halt.
As if those storm clouds weren’t
predicting impending doom, the
market for leisure travel was drying
up and, in an effort to maximize
capital, businesses worldwide were coming to depend more
on technology than travel.
“We, as a company, were going through a very difficult
internal recession,” Wyshner recalls. But, he and his team
stuck to that overall guiding strategy: Act, don’t react.
Faced with current and oncoming adversity, the company
acted swiftly, closing unprofitable locations and realigning
headcount to keep in line with customer volume. It moved
away from negative margins and aggressively toward keeping
fleet levels in line with demand.
It was a group effort, for sure, but Wyshner certainly led
the charge to take action. “I see myself as a member of the
senior leadership team working with great people to move
the business forward,” Wyshner explains. “It’s important to me
that we are being thoughtful and analytical from a financial
perspective in all of our decision-making across the board.
We are more than the finance team at Avis Budget. We are
part of a much bigger, broader operation that is always
focused on doing the best for the people we service.”
One Focus, Always
“I’m incredibly proud of the actions we took during difficult
times, and the fact that we were able to do them in a way
that didn’t negatively impact our customers was an overall
success,” he says, noting that satisfied customers are a strategic
focus every hour of every day in every country that Avis
Budget operates.
“Customers are the lifeblood of our business. Having happy,
satisfied customers is critical,” he explains. “I’m not here to
focus on just the numbers. I take a much broader view of our
business. Every month I review a reporting package with my
team that includes Voice of the Customers’ scores. I believe
that keeping those numbers at the forefront allows me to
think about this company strategically, from every angle.”
In fact, make no mistake about it. All this talk about
customer service isn’t fluff. Wyshner says that focusing
on the customers does add up — literally.
Consider that Avis Budget has two highly recognized
brands that meet the needs of both commercial and leisure
travelers. The company handles more than 27 million
transactions a year. Every time the company makes a
change, even the tiniest change, there is an exponential
impact on the bottom line.
“When we focus on the customers’ needs,“ says Wyshner,
“we are constantly looking for ways to do something a
little better. We look to handle
the transaction more efficient-
ly, which saves time.
If we find a way to offer the cus-
tomers something extra that
they are asking for, we can get a
little more for a rental day.
Those financial impacts, up or
down, get multiplied by 27 mil-
lion. If we save five cents a
transaction, times 27 million
transactions, that’s a number
that can’t be ignored.”
By serving two audiences – money-conscious travelers with
the Budget line and premium travelers through Avis rentals –
the company has figured out a way to wrap its collective
arms around the overall market. The company reported
$6 billion in revenue last year.
A Bigger Piece of the Pie
Avis Budget has a global presence; it has the leading market
share in Australia, #2 in the United States, and operates
through both corporate owned locations as well as a network
of licensees in more than 175 countries. Wyshner’s team,
however, felt there was a way to strengthen the company
and expand its reach.
He led an initiative to acquire Avis Europe to reunite the
global operations of the Avis and Budget brands under one
corporate umbrella. The deal closed in the fall of 2011; Avis
Budget Group acquired all outstanding shares of Avis Europe
for about $1 billion.
Prior to the merger, Avis Europe was an independent
publicly traded company that operated the Avis brand via
a network of more than 3,100 locations in 112 countries,
through wholly owned subsidiaries in 13 countries and
through license arrangements in an additional 99 countries.
Avis Europe also operated the Budget brand through 950
locations in 59 countries.
Wyshner believes the initiative was a win-win for the entire
company. First, following the deal, Avis Budget made moves
to create three new operating regions – Europe, Middle East
and Africa (EMEA); North America; and Latin America/Asia
Pacific – that will further integrate worldwide company
operations.
According to corporate projections, the company believes
the strategic initiatives it has implemented have accelerated
its revenue and profit growth and that it is well-positioned
to realize significant benefits from the acquisition and
integration of Avis Europe.
“Our overall initiative is allowing us to more effectively
service customers worldwide and rapidly grow international
I’m incredibly proud of the
actions we took during difficult
times, and the fact that we were
able to do them in a way that
didn’t negatively impact our
customers was an overall success.”
“