Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Millman - Millman Research Associates.
Michael Millman - Millman Research Associates
I guess on your next to the last slide, you talk about advance bookings continue to build and leisure pricing continues which we’d expect seasonally but can you put that in some context year-over-year? And then sort of related, you appear and leisure increase was 2%, yet Avis announced that their second quarter numbers were up 5 to 7% total company, and maybe you can talk about why there seems to be such a discrepancy.
Mark P. Frissora
Yes, I guess in terms of the future demand, answer that kind of question first, you know on the rental car side again we see demand improving into the third quarter and beginning into the fourth quarter we’re seeing improvements in advance reservations there as well, a slight improvement. Again the visibility in the fourth quarter is much more murky but we see improvement. I guess, you know, we anticipate, the best way to answer that is our fleet will probably be down instead of being down 15% we saw in the second quarter, it’ll probably be down in the fourth quarter closer to the range of 5 to 8%. So a much lower reduction in order to see increased demand that we see coming. So those are kind of our fleet plans. So that might answer the demand equation.
We also expect our deprecation per vehicle to come down significantly in the third and fourth quarter, based on those numbers. I can’t tell you what that’s going to come down but it’s going to come down significantly from what you saw in the second quarter.
In addition to that, just talk about pricing for a minute, in the second quarter we saw our leisure on airport pricing was actually up 5.7%, Michael. So it was up significantly, in the range you saw maybe forecasted by Avis. Our commercial sector continues to be under pressure in the range of 3 to 5%. You know the other thing that I mentioned is if that we have a very broad swath of markets, unlike the other rental companies. Broader than any rental company frankly. And that creates, you know, in some cases a smaller increase in overall pricing. You know if you look at, you know, Budget, you know, as it relates to Avis Budget, that’s a big leisure brand for them. And Joe do you have some comments on that?
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