Enhancing Car Rental Revenue Management with AI-driven Dynamic Pricing

The car rental industry today is enjoying a boom amid rising disposable incomes, improved air connectivity across smaller cities, and healthy growth in business and leisure travel. The U.S. market had its best year ever in terms of revenue in 2018, clocking a 4.8% jump in top line to over $30bn. Even more impressive was the fact this record revenue was realized on smaller fleet base, with revenue per unit hitting an all-time high of $1,131 per month.

Understanding how events affect demand and pricing for the car rental business

Historically, car rental pricing has depended on how large an event was: the larger the event, the higher the price and revenue managers knew all the large events well and that made sense.