Avis Budget Group Inc Q4 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst : Great results. First question on some of the fleeting dynamics in the fourth quarter. We had certainly been anticipating that you would hold on to more vehicles in the quarter despite seasonal patterns of defleeting due to the production environment that was probably going to remain under pressure through this year. But a 70% utilization rate in the Americas in a quarter is not indicative of being overfleeted even on a temporary basis. So were you still feeling the pressure of getting enough vehicles on hand in the quarter? And is there a way to triangulate perhaps what your optimal fleet size and optimal rental days would have been in the quarter if some of the supply constraints were not present, meaning would you have gone out and acquired perhaps more vehicles in the quarter if possible to meet demand?

Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst : Okay. Great. That's helpful. And then a second question on the pricing dynamics in the Americas. I understand there are a lot of puts and takes to pricing in any given quarter, and you cited some of the dynamic of Omicron in December. But I think there's a concern that pricing may be starting to perhaps roll over. In the quarter, is it possible to identify what you think were the main factors for the sequential decline in revenue per day, whether it's the typical seasonality or the supply versus demand environment or maybe even perhaps the return of commercial business, which typically comes on at lower revenue per day, and what you think is more important than others?