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Cendant Plans Expansion Across Britain and the Continent Following NCP Acquisition

Strategic Insights

— 1 min read

Cendant, the parent company of Avis, Ramada Inns, and Travelodge, plans to use its acquisition of National Parking Corporation (NCP) as a springboard for expansion across Britain and the Continent. The company aims to take over the running of hundreds of British local authority car parks, leveraging NCP's existing network of seven million customers. Cendant's loyalty-card scheme will offer additional services such as tyre checks, car servicing, and valeting, in a bid to improve customer satisfaction and increase revenue.

Key Takeaways:

  • Cendant's acquisition of NCP is valued at £801 million and will enable the company to expand its presence in Britain and Europe.
  • NCP controls only 12% of the total number of parking spaces in the UK, with 80% controlled by local authorities.
  • Cendant plans to offer loyalty-card benefits to NCP customers, including access to shopping, travel, and car services.
  • The company's current loyalty-card scheme has 66 million holders, providing significant potential for revenue growth.
  • NCP has made a profit of £26.1 million in the half-year to September 26, with a net asset value of £287.7 million.
  • Since Bob Mackenzie's arrival in 2018, the company has doubled its value and invested heavily in computer systems and security.
  • Cendant plans to address the issue of congestion on UK roads by acquiring and operating car parks, which would enable traffic to move freely.
  • The company's acquisition of American Bankers Insurance Group (ABIG) for $3.1 billion will make it the largest US seller of insurance through banks, retailers, and third parties.

Statistics:

  • 7 million: Number of customers who use NCP parking garages and Green Flag emergency rescue service.
  • 66 million: Number of holders of Cendant's loyalty cards.
  • 10-12%: Current market share of NCP in the UK parking market.
  • 80%: Percentage of UK parking spaces controlled by local authorities.
  • 10 million: Forecast increase in cars in the UK by 2025.
  • £801 million: Value of Cendant's acquisition of NCP.
  • £26.1 million: Profit made by NCP in the half-year to September 26.
  • £287.7 million: Net asset value of NCP.
  • 50%: Forecast increase in cars in the UK by 2025.

Sources:

  • Cendant press release, dated "yesterday" (exact date not specified)
  • Interviews with Stephen Holmes, vice chairman of Cendant
  • National Parking Corporation financial reports (half-year to September 26)
  • Industry forecasts and market research reports (exact sources not specified)

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