Revenue Mangement system based Excel is a big risk. Why That ?

Excel is a great tool and after permanent upgraded versions, it becomes more and more sophisticated. But on a day-to-day revenue optimization, Excel may put your company in an instable environment with a lot of hidden costs. Let’s share few example of my personal experiences. BEFORE, ANSWER THIS QUICK QUESTIONNAIRE Please take 5 minutes to…

Should “Zika” buzz impact car rental prices?

As usual, the media buzz has been concentrating over the new Zika disease to inform about risks (that are real) creating collateral impact on tourism. Our partner Forwardkeys released its Market insights last February and commented as follow: The slowdown began to emerge following a travel warning from the US government Centres for Disease Control and Prevention…

What the hell is this pricing tactic?

As any Revenue Manager in any industry, we are struggling to bring the most advanced intelligence in our analytics in the smartest way possible. Day-to-day demand drill-down computed with fleet constraints and market situation should give the Car Rental suppliers the most profitable output. But it is without taking into consideration human erratic misktakes and/or…

What is the car rental market size in 2020?

Based on a recent study released by Future Market Insight broadcasted by AutoRentalNews the worlwide car rental market will grow from an estimated 52 billion USD to 106 billion USD in 2020. The FMI report estimates that the global car rental market will therefore more than double in five years. Assuming that the US are currently the oldest and…

How to measure yield management performance in car rental ?

Measuring the performance impact on company’s bottom line when yield management techniques are implemented is a permanent goal. Like Nessie of Loch Ness in the Scottish Highlands, some said that they saw it but nobody can prove it. Fortunately, it is easier to prove great benefit of the Yield Management implementation on your bottom line…

How to reduce human mistake in revenue management

IS IT POSSIBLE TO TAKE EFFICIENT DECISION WHILE BEING UNDER TOO MUCH PRESSURE ? Emmanuel Scuto, CEO of WeYield, expert in car rental optimization Have you ever found a yield manager not stressed? How many of you got a bit of anxiety finalizing his/her capacity optimization of a train segment, for a a peak departure…

Hertz and Ryanair have divorced. What’s next?

The partnership between Hertz and Ryanair stopped on 2 July 2015 after years of strong cooperation. Even though legal term was supposed to end in 2020, Hertz decided to breach the contract following a dispute over Ryanair’s indirect ticket sales. Since years, Hertz with Ryanair but also Europcar with Easyjet, opened their doors to the low…

Rule #5: Select the car groups to be shopped

Setting the appropriate car groups to be shopped depends on the target defined by the Business Analyst as well as the technical constraints brought by the data supplier. Some local data suppliers are present in almost all the markets. However they mostly operate for B-to-C business (rate shops provided to market place or price comparator…

Rule #4: Define the appropriate schedule to run the query

After the previous rules, another key element is : over what period of time should the user run the queries? This parameter is directly linked to their booking pattern by arrival dates and their advance booking. Anticipe the furthest possible the market watch to get alerted as ealy as possible. If most of the reservations are…

Rule #3: Fine tune rental duration and day-of-week

There is no efficient rate shop without a proper configuration of rental duration and a smart choice of day-of-week. To select them, you must analyze precisely your volume of business by departure day and rental duration both split by season (low, medium and high season) and by period (business or leisure). Do not forget to…

5 rules to get an efficient rate shop in car rental: Rule #1

RULE #1 : CHOOSE THE RIGHT COMPETITORS NOT BASED ON KNOWLEDGE BUT ON YOUR OWN METRICS Tracking a competitor is more than simply collecting the rates of all your competitors located on the same market. Over the past 10-year development of electronic distribution, intermediaries (ie Brokers) became important operators to be tracked and configured in…