Montgomery BLAIR

Rental Car Revenue Management - The Challenges a Company Faces

This talk will outline and illustrate some of the issues (problems) faced from a company's perspective. It will include segmentation, forecasting, competitive information, decision support tools, performance measurement, price elasticity, data and people. From forecasting and optimization to simple statistical analysis and management of personnel, great profits can be gained from small incremental improvements. However, there are also tremendous risks present with even the smallest of errors in systems or poor judgment. It is imperative that a company understands thoroughly the consequences of their actions and thus not only develop strong technical solutions but cautiously implement the actions as well. The goal is not to merely create a single "revenue management system" but rather build a sustainable competitive advantage from the scientific journey itself.