Dynamic pricing a ‘hygiene factor’ for rental car operators

Challenge now for rental car operators is to get more out of dynamic pricing, says MarginFuel’s new Head of Customer Aliénor Izri.

‘’Dynamic pricing been in the industry for around 15 years but adoption was relatively slow until the last couple of years. It’s advanced so fast it’s really become a ‘hygiene factor’ now, something you simply need to compete in the rental vehicle market,’’ says Aliénor.

She says the rental vehicle market is becoming extremely competitive and more dynamic than ever before. ‘’The challenge now for rental vehicle operators in terms of their dynamic pricing is two-fold. First, it is become more efficient at managing what for many are thousands of price points. Second is to become more ‘granular’ – to be able to realistically review pricing on a daily basis.’’

With deep experience in the tourism and rental vehicle market, Aliénor is well placed to know. She joined MarginFuel in October 2018, after stints with Europcar Australasia as Senior Pricing Manager; Aerodrive Car Rental as Group Revenue Manager; and as Revenue and Technology Manager at Ezi Car Rentals.

“Price optimisation software is a key to advancing your pricing strategies”, says Aliénor, “enabling rental vehicle operators to make smarter decisions more efficiently”.

‘’Operators are beginning to understand that investing in dynamic pricing software can have a significant positive revenue impact. For the typical MarginFuel customers we are achieving growth of 8%, but for those that are less developed in their pricing it is more like 15-20%.’’