<description>For me, this is a crucial question: how can I improve my performance in a highly competitive environment?

This question is often asked by fairly experienced customers who have a good knowledge of their market. Yet they feel frustrated by the difficulty of increasing their average price (RPD) without touching the price, which is too closely scrutinized by competitors. 

The conversation brought to you today summarizes an article written by  Emmanuel Scuto, founder of WeYield and a revenue machinist for almost 25 years in the car rental industry. In this podcast, we aim to share with you the observed constraints and the solutions we've come up with at WeYield. 

Note: these recommendations are aimed at rental companies who are in direct competition on the same site. They are located in airports, car rental centers or train stations. 

Definition: demand is considered inelastic or rigid when the sales volume or conversion rate does not fall in the face of a price increase (or a high price). Demand becomes elastic when it is highly sensitive to any price variation.

This conversation has been generated by the AI NotebookLM.google.com (beta) and it is based on Emmanuel Scuto's article published on https://www.weyield.io/blog-posts/tip-how-to-increase-rpd-without-increasing-prices</description>

For me, this is a crucial question: how can I imp…

For me, this is a crucial question: how can I improve my performance in a highly competitive environment?

This question is often asked by fairly experienced customers who have a good knowledge of their market. Yet they feel frustrated by the difficulty of increasing their average price (RPD) without touching the price, which is too closely scrutinized by competitors. 

The conversation brought to you today summarizes an article written by  Emmanuel Scuto, founder of WeYield and a revenue machinist for almost 25 years in the car rental industry. In this podcast, we aim to share with you the observed constraints and the solutions we've come up with at WeYield. 

Note: these recommendations are aimed at rental companies who are in direct competition on the same site. They are located in airports, car rental centers or train stations. 

Definition: demand is considered inelastic or rigid when the sales volume or conversion rate does not fall in the face of a price increase (or a high price). Demand becomes elastic when it is highly sensitive to any price variation.

This conversation has been generated by the AI NotebookLM.google.com (beta) and it is based on Emmanuel Scuto's article published on https://www.weyield.io/blog-posts/tip-how-to-increase-rpd-without-increasing-prices

How To Increase RPD Without Increasing Prices

<description>Welcome to a new episode of the podcast Revenue Machine, the only one dedicated to Revenue Management. Today, Emmanuel Scuto interviews Romain Charié. Romain, co-founder of the consulting firm N&amp;C, initially pursued studies in aeronautics before specializing in business-oriented data analysis. His experience at Air France allowed him to combine his two passions. Although the airline has sophisticated processes and tools, human intervention remains essential for decision-making. Excessive automation can lead to a loss of control over tools and analysis.

One of the advantages of an RMS (Revenue Management System) is its speed and depth of analysis. However, when external factors disrupt the model (weather, strikes, security risks, etc.), the analyst must take over. For example, seasonality is never identical from one year to the next, requiring a flexible approach to analysis. At Air France, Romain compiled all documents and procedures related to optimization techniques into a White Paper, which became the bible for every revenue manager, ensuring a consistent approach to analysis.

In the car rental sector, where stock uncertainty makes precise forecasting impossible, Romain found that grouping cars into broad categories was sufficient to achieve accurate probability assessments. His last corporate experience was within the Revenue Development team at Disneyland Paris, where the existing forecasting tool was ultimately ill-suited to the evolving booking behaviors of clients.

Since 2014, Romain has partnered with Pascal Niffoi, with whom he worked at Air France and Disneyland Paris, to establish their consulting firm focused on optimization. They believe an analyst must always understand why a tool made a recommendation. They observed two reactions to their RMS Revbell: complete acceptance or rejection in favor of the more familiar Excel. To enhance RM analysts' skills, they offer checklists and procedures.

As passionate professionals, Romain and Pascal also aim to explain the levers of price action in the media. Regardless of the industry, they believe that volume is a key factor in profitability, even before the pursuit of average price.</description>

Welcome to a new episode of the podcast Revenue M…

Welcome to a new episode of the podcast Revenue Machine, the only one dedicated to Revenue Management. Today, Emmanuel Scuto interviews Romain Charié. Romain, co-founder of the consulting firm N&C, initially pursued studies in aeronautics before specializing in business-oriented data analysis. His experience at Air France allowed him to combine his two passions. Although the airline has sophisticated processes and tools, human intervention remains essential for decision-making. Excessive automation can lead to a loss of control over tools and analysis.

One of the advantages of an RMS (Revenue Management System) is its speed and depth of analysis. However, when external factors disrupt the model (weather, strikes, security risks, etc.), the analyst must take over. For example, seasonality is never identical from one year to the next, requiring a flexible approach to analysis. At Air France, Romain compiled all documents and procedures related to optimization techniques into a White Paper, which became the bible for every revenue manager, ensuring a consistent approach to analysis.

In the car rental sector, where stock uncertainty makes precise forecasting impossible, Romain found that grouping cars into broad categories was sufficient to achieve accurate probability assessments. His last corporate experience was within the Revenue Development team at Disneyland Paris, where the existing forecasting tool was ultimately ill-suited to the evolving booking behaviors of clients.

Since 2014, Romain has partnered with Pascal Niffoi, with whom he worked at Air France and Disneyland Paris, to establish their consulting firm focused on optimization. They believe an analyst must always understand why a tool made a recommendation. They observed two reactions to their RMS Revbell: complete acceptance or rejection in favor of the more familiar Excel. To enhance RM analysts' skills, they offer checklists and procedures.

As passionate professionals, Romain and Pascal also aim to explain the levers of price action in the media. Regardless of the industry, they believe that volume is a key factor in profitability, even before the pursuit of average price.

#21 Romain Charié - Le duo logiciel/analyste doit travailler en collaboration vFR

<description>« I wake up every morning believing that I do not know much »

Montgomery Blair, a seasoned expert in revenue management, emphasizes continuous learning and innovation. With a strong background in data science and analytics, he pioneered the implementation of a revenue management system for Dollar Rent A Car in the late 1990s, revolutionizing leisure pricing based on demand forecasting.

At Avis Budget Group, Montgomery advanced their Revenue Management system, integrating fleet management and corporate contracts into the optimization process. He highlights the importance of balancing dynamic pricing with corporate flat rates to maximize profitability, noting that losing low-rate corporate accounts can often lead to higher overall returns by freeing up availability for higher-paying customers.

Montgomery underscores the need for internal collaboration, suggesting that the real competition often lies within the organization, between departments managing different segments. He advises focusing on maximizing contractual segments before optimizing discretionary pricing.

In the car rental industry, Montgomery advocates for leveraging supply flexibility, driving cost efficiency, and making smarter data-driven decisions. He stresses the importance of correctly defining problems and accurately measuring performance, particularly in fleet decisions. Lastly, he encourages professionals to embrace innovation, take calculated risks, and stay engaged through industry conferences to drive significant advancements.

Chapter
0:00:00 introduction of Montgomery Blair starting in car rental late 1990’s
0:29:30 what are the key dimensions to look at in RM
0:40:10 The overall level of fleet
0:51:25 AI and measuring performance 
1:03:10 Should duration band pricing be stopped?
1:08:10 How to share analytics in a digest format

References
It’s your ship from Captain Michael Abrashoff
Principles of economics by Alfred Marshall</description>

« I wake up every morning believing that I do not…

« I wake up every morning believing that I do not know much »

Montgomery Blair, a seasoned expert in revenue management, emphasizes continuous learning and innovation. With a strong background in data science and analytics, he pioneered the implementation of a revenue management system for Dollar Rent A Car in the late 1990s, revolutionizing leisure pricing based on demand forecasting.

At Avis Budget Group, Montgomery advanced their Revenue Management system, integrating fleet management and corporate contracts into the optimization process. He highlights the importance of balancing dynamic pricing with corporate flat rates to maximize profitability, noting that losing low-rate corporate accounts can often lead to higher overall returns by freeing up availability for higher-paying customers.

Montgomery underscores the need for internal collaboration, suggesting that the real competition often lies within the organization, between departments managing different segments. He advises focusing on maximizing contractual segments before optimizing discretionary pricing.

In the car rental industry, Montgomery advocates for leveraging supply flexibility, driving cost efficiency, and making smarter data-driven decisions. He stresses the importance of correctly defining problems and accurately measuring performance, particularly in fleet decisions. Lastly, he encourages professionals to embrace innovation, take calculated risks, and stay engaged through industry conferences to drive significant advancements.

Chapter
0:00:00 introduction of Montgomery Blair starting in car rental late 1990’s
0:29:30 what are the key dimensions to look at in RM
0:40:10 The overall level of fleet
0:51:25 AI and measuring performance 
1:03:10 Should duration band pricing be stopped?
1:08:10 How to share analytics in a digest format

References
It’s your ship from Captain Michael Abrashoff
Principles of economics by Alfred Marshall

#22 Montgomery Blair, pionner in car rental revenue management

<description>With over 30 years of experience in Revenue Management (RM) at Dollar-Thrifty and Hertz, primarily serving franchisees, I have witnessed the evolution of the industry. I began my journey when Travelocity emerged as the first online travel agency, predating Expedia. This period marked a significant shift as pricing became a critical factor in customer decision-making with the advent of the internet in the early 2000s. At Dollar, our IT manager developed a separate tool to manage prices independently from the regular reservation system, which was groundbreaking at the time.

Car rental licensees reacted differently to RM shift. Some were progressive and open to new strategies to enhance competitiveness, while others were primarily concerned with costs. A portion of the licensees initially struggled to grasp the importance of these changes. Over time, customers have been conditioned to search for the best rates, necessitating a disciplined approach to fleet management to influence better booking behaviors. During peak seasons, despite high prices, people continue to travel, indicating that car rental costs are not a major factor in destination choices.

Fleet management decisions, such as opting for purchase options that lead to over-fleeting, can impact revenue. Initially, Dollar acted as an outsourced revenue manager with limited information about the fleet. A framework was established between licensees and the RM team at headquarters to create a pricing corridor, allowing flexibility without requiring rental operator approval for each price change. Trust built over months and years led internal clients to consult the RM team on broader issues beyond pure RM topics.

High-level performance in car rental necessitates a solid foundation and daily discipline. It begins with accurately calculating the usable fleet available each day, monitoring no-show rates by day of the week, tracking reservation trends, and analyzing competitor behavior. Manual rate monitoring is inefficient; daily RM practices are vital. When uncertain, revenue managers should test their hypotheses, as the results can sometimes be surprising and significantly impact yield.

The presence of players making illogical pricing decisions can disrupt the entire market. Conversely, systematic yield management by key players benefits the market as a whole. To enhance processes, trying new methods or features that promise better results is encouraged. However, mastering the fundamentals and practicing them consistently is crucial for success. Simply pressing buttons or expecting a system to work magic will not suffice.

Maximizing revenue opportunities requires a strategic approach distinct from operational decisions. A revenue manager equipped with the right tools and strong fundamentals can make optimized decisions regarding "when, where, and what" actions to take, even in unexpected situations. This ability to adapt and optimize in real-time is both challenging and rewarding. 

In summary, effective revenue management in car rental is an investment that pays off through consistent, disciplined practices and a willingness to embrace innovation while maintaining a strong grasp of the basics. This approach ensures that revenue opportunities are maximized and the business remains competitive and profitable.

Chapter
00:00:00 Introduction of Andy, how did the RM start at Dollar
00:13:10 Beginning of the pricing by duration and check-out
00:23:30 Reaction of licensees confronted to the revenue management project
00:30:30 Summer pricing, car dealers: influence factors
00:38:40 Process to onboard a licensee in the Central RM
01:00:00 Advices on best practices
01:16:20 Market benefits of all car rental implementing yield management properly
01:20:10 Andy’s vision about the future mobility like peer-to-peer 
01:28:20 RM fundamentals of the job</description>

With over 30 years of experience in Revenue Manag…

With over 30 years of experience in Revenue Management (RM) at Dollar-Thrifty and Hertz, primarily serving franchisees, I have witnessed the evolution of the industry. I began my journey when Travelocity emerged as the first online travel agency, predating Expedia. This period marked a significant shift as pricing became a critical factor in customer decision-making with the advent of the internet in the early 2000s. At Dollar, our IT manager developed a separate tool to manage prices independently from the regular reservation system, which was groundbreaking at the time.

Car rental licensees reacted differently to RM shift. Some were progressive and open to new strategies to enhance competitiveness, while others were primarily concerned with costs. A portion of the licensees initially struggled to grasp the importance of these changes. Over time, customers have been conditioned to search for the best rates, necessitating a disciplined approach to fleet management to influence better booking behaviors. During peak seasons, despite high prices, people continue to travel, indicating that car rental costs are not a major factor in destination choices.

Fleet management decisions, such as opting for purchase options that lead to over-fleeting, can impact revenue. Initially, Dollar acted as an outsourced revenue manager with limited information about the fleet. A framework was established between licensees and the RM team at headquarters to create a pricing corridor, allowing flexibility without requiring rental operator approval for each price change. Trust built over months and years led internal clients to consult the RM team on broader issues beyond pure RM topics.

High-level performance in car rental necessitates a solid foundation and daily discipline. It begins with accurately calculating the usable fleet available each day, monitoring no-show rates by day of the week, tracking reservation trends, and analyzing competitor behavior. Manual rate monitoring is inefficient; daily RM practices are vital. When uncertain, revenue managers should test their hypotheses, as the results can sometimes be surprising and significantly impact yield.

The presence of players making illogical pricing decisions can disrupt the entire market. Conversely, systematic yield management by key players benefits the market as a whole. To enhance processes, trying new methods or features that promise better results is encouraged. However, mastering the fundamentals and practicing them consistently is crucial for success. Simply pressing buttons or expecting a system to work magic will not suffice.

Maximizing revenue opportunities requires a strategic approach distinct from operational decisions. A revenue manager equipped with the right tools and strong fundamentals can make optimized decisions regarding "when, where, and what" actions to take, even in unexpected situations. This ability to adapt and optimize in real-time is both challenging and rewarding. 

In summary, effective revenue management in car rental is an investment that pays off through consistent, disciplined practices and a willingness to embrace innovation while maintaining a strong grasp of the basics. This approach ensures that revenue opportunities are maximized and the business remains competitive and profitable.

Chapter
00:00:00 Introduction of Andy, how did the RM start at Dollar
00:13:10 Beginning of the pricing by duration and check-out
00:23:30 Reaction of licensees confronted to the revenue management project
00:30:30 Summer pricing, car dealers: influence factors
00:38:40 Process to onboard a licensee in the Central RM
01:00:00 Advices on best practices
01:16:20 Market benefits of all car rental implementing yield management properly
01:20:10 Andy’s vision about the future mobility like peer-to-peer 
01:28:20 RM fundamentals of the job

#20 Andy England, Revenue Management expert in car rental

<description>"identifier les attributs de valoriser avant d'agir sur les prix"

Quand la tactique consiste à simplement augmenter les prix, le risque est de venir heurter la valeur perçue par le client et de ne pas atteindre les résultats globaux. Sur le marché du pneu automobile, la concurrence est intense. Mais la perception premium par le client permet d'avoir une différence prix forte par rapport à la concurrence.

Pour réussir, il est essentiel de se pencher sur les attributs de valorisation : ce qui différencie par rapport à la concurrence mais qui est valorisé par le consommateur pour être converti en prix. Tester la perception prix permet de mesurer l'élasticité des clients au prix : un changement de prix ne coûte rien, est facile et très rapide à mettre en oeuvre. 

L'augmentation des prix n'enclenche pas forcément une fuite du volume lorsque le produit et la marques sont supportés par le marketing et la communication associée via les attributs de valorisation. Une cartographie de ces attributs prend seulement quelques semaines. Cela peut être fait en interne

La promotion n'est pas du pricing mais un mécanisme commercial de simulation temporaire de la demande habillé par le marketing. Un outil pricing est une option pour simuler l'élasticité de prix. Pour être efficace, il doit être contrôler par un pricer. Il y a toujours quelqu'un qui va prendre une décision sur le prix mais c'est malheureusement rarement une fonction dédiée.

La verticalité du prix permet gérer une différenciation fine. L'exemple du pricing Décathlon est est une référence dans le domaine. Segmenter l'offre permet d'offre plus de service associé au prix. Le gain possible est entre +3 et +8% de marge.

Les aptitudes pour être un bon revenue management : aimer la data, la manipuler, la formater tout en sachant prendre du recul pour garder à l'esprit comment la décision va être interpréter par le client sur le marché cible.

Chapitre
00:00:00 présentation d'Alexandre
00:17:50 Rester customer centric et les attributs de valeur
00:30:10 Tester la perception en jouant avec les prix
00:40:10 Comment réaliser des tests d'attributs de valorisation
00:52:40 Attention à l'impact de la promotion permanente
00:58:04 A quoi sert un outil pricing
01:08:00 Pourquoi la fonction prix est-elle si peu développée
01:14:00 L'exemple du pricing chez Decathlon
01:27:50 Comment devenir un bon pricer
01:39:01 Le challenge pricing d'Alexandre</description>

"identifier les attributs de valoriser avant d'ag…

"identifier les attributs de valoriser avant d'agir sur les prix"

Quand la tactique consiste à simplement augmenter les prix, le risque est de venir heurter la valeur perçue par le client et de ne pas atteindre les résultats globaux. Sur le marché du pneu automobile, la concurrence est intense. Mais la perception premium par le client permet d'avoir une différence prix forte par rapport à la concurrence.

Pour réussir, il est essentiel de se pencher sur les attributs de valorisation : ce qui différencie par rapport à la concurrence mais qui est valorisé par le consommateur pour être converti en prix. Tester la perception prix permet de mesurer l'élasticité des clients au prix : un changement de prix ne coûte rien, est facile et très rapide à mettre en oeuvre. 

L'augmentation des prix n'enclenche pas forcément une fuite du volume lorsque le produit et la marques sont supportés par le marketing et la communication associée via les attributs de valorisation. Une cartographie de ces attributs prend seulement quelques semaines. Cela peut être fait en interne

La promotion n'est pas du pricing mais un mécanisme commercial de simulation temporaire de la demande habillé par le marketing. Un outil pricing est une option pour simuler l'élasticité de prix. Pour être efficace, il doit être contrôler par un pricer. Il y a toujours quelqu'un qui va prendre une décision sur le prix mais c'est malheureusement rarement une fonction dédiée.

La verticalité du prix permet gérer une différenciation fine. L'exemple du pricing Décathlon est est une référence dans le domaine. Segmenter l'offre permet d'offre plus de service associé au prix. Le gain possible est entre +3 et +8% de marge.

Les aptitudes pour être un bon revenue management : aimer la data, la manipuler, la formater tout en sachant prendre du recul pour garder à l'esprit comment la décision va être interpréter par le client sur le marché cible.

Chapitre
00:00:00 présentation d'Alexandre
00:17:50 Rester customer centric et les attributs de valeur
00:30:10 Tester la perception en jouant avec les prix
00:40:10 Comment réaliser des tests d'attributs de valorisation
00:52:40 Attention à l'impact de la promotion permanente
00:58:04 A quoi sert un outil pricing
01:08:00 Pourquoi la fonction prix est-elle si peu développée
01:14:00 L'exemple du pricing chez Decathlon
01:27:50 Comment devenir un bon pricer
01:39:01 Le challenge pricing d'Alexandre

#19 Alexandre Devanne, consultant pricing (vFR)

Passionnate about car rental company transformation in yield management

The revenue machine

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