At a time when quality and sustainability have taken the lead among buyers, pricing still remains a significant factor in purchasing decisions. Most consumers seek the lowest pricing options wherever possible, and the internet has made it increasingly easy to find the lowest prices.
Offering the right value for money to your customers and ensuring your profits don’t dwindle is usually a balancing act. Business owners often face this challenge, and the rising competition in the digital world isn’t helping either. Getting proper price optimization is becoming an increasingly major challenge.
Given the debilitating scenario of Covid-19, the volatility across all markets has gone up multifold. So, for any business to thrive in unpredictable markets, it became essential to do away with ‘assumptions’ and rely on machine learning forecasting methods.
As the car rental industry looks set to gear up for the next few years, here are 5 lessons from 2021 that every car rental business must be mindful of.
If you are reading this, then you are probably already aware of ICRS22, which takes place in Las Vegas on April 24-26.
In the quest for improved fleet utilization (fleet efficiency) and Revenue Per Day (RPD), car rental companies are trying out multiple tactics and solutions to maximize two of the most important KPIs in the car rental industry.
The travel and transportation industry has historically been slow to innovate. Many players in the industry, especially car-rental companies, rely on customer service and employee loyalty, rather than digital tools, to generate business value.
Have you ever noticed that if you and your friend book an Uber cab for the same route and distance, both of you may be charged differently? That is Uber’s dynamic pricing coming into play! Pricing changes dynamically depending on customer data, local events and demand, besides many other factors.
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.
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.