To boost sales, grow your company, and even to improve financial performance, it’s imperative to know your competitors and their rates. To do this, an increasing number of rental companies rely on Car Rental Management Software to create the best pricing strategy.
When planning any trip there is one key element to making decisions: the price. From the hotel we are staying to the places we are visiting are conditioned by budget. And renting a car is no exception. Potential customers spend a lot of time looking for options and comparing them. So why shouldn't car rental companies do the same?
To offer the best deal, car hire companies must constantly pay attention to their competitor’s prices and its fluctuations. However, doing it manually becomes arduous, repetitive, and has no intrinsic value to the business. Consequently, more and more rental companies are integrating car rental management software to achieve price optimization.
In order to optimize their sales, car rental companies are keen to set their rates based, in part, on an overview of the competition. For this reason, more and more rental companies rely on technology to manage rates dynamically and at scale.
These tools allow you to monitor the competition's prices automatically. By analyzing the market over a certain period of time and comparing it to historical trends, it is possible to anticipate fluctuations. Thus, within a few seconds, we can monitor market prices and anticipate the movements of the competition to ensure the best rates on the market.
On the other hand, these tools allow us to detect when there has been a change or there are opportunities to be seized in the market. This means that we can base our decisions on data and create strategies on time. For example, if a competitor quickly lowers their prices for a specific date and we catch it on time, the marketing team could create a promotion to align with that price strategy or offer a service bonus to make up for the difference.
In short, these tools can monitor whether the pricing policy is appropriate for the market or establish a competitive advantage. But they also let us know in time if it is necessary to adjust the profit margin so as not to lose sales, or if it’s an opportunity to expand this margin without losing customers. By instantly detecting the drop or rise in prices of the competition, it is possible to adapt quickly to continue guaranteeing the business´ profitability.
At Rently Soft we know how competitive the rent-a-car market is, and the variables in terms of managing rates are endless. For this reason, we integrated a Price Optimization Engine (POE), which allows you to see how other competitors display their prices and make the appropriate adjustments according to different scenarios.
This optimization engine adapts to the needs of the renter concerned. Car rental software lets you set up geographic areas and include the competitors you want to keep an eye on. This software can detect local prices, so you don't have to monitor an entire country. For example, you can find out if the fleets near a city have the same price as those at the airport or if there’s a difference in price by car model.
In this sense, the Price Optimization Engine also allows you to customize the frequency with which the competition's prices are being monitored. We know that the market can be more or less dynamic depending on the country in which the rental company is located, so the system allows parameterizing this variable to fit the needs of each client.
RentlySoft also includes a route manager, with which you can ensure proper rate parity across all sales and distribution channels. This way you can easily communicate a new pricing policy when you detect a market opportunity. Furthermore, thanks to Rently Management Software, it’s possible to create promotions, as well as price and business agreements.
Just as the way in which clients evaluate services before contracting them has changed, so has the management system of rental companies. Obtaining information on the competition's rates in an automated way is a competitive advantage that allows you to make better decisions to safeguard profitability, scale up the business and improve financial performance.