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How Should We Set Our Car and Van Hire Rates When We Are Fully Booked Some Weeks and Empty Others?

Car and van rental firms set rates once a season and leave them. We build a rate view showing utilisation, booking pace and competitor prices for each group.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Many rental firms set rates once a season, so they sell out busy weeks too cheaply and sit empty in quiet ones at the same price. We build a rate view that shows, for each branch, vehicle group and week ahead, how full you will be, how fast bookings are coming in compared with last year and what nearby competitors are charging, and lets you change rates with rules you control.

Sold out three weeks early

The summer holiday weeks at an airport branch sold out in the spring, at the standard summer rate. In August, customers were being turned away while competitors, whose rates had risen as demand grew, were still taking bookings at much higher prices. In November, the same branch had half its fleet idle at a rate that had not changed since October.

Nobody was asleep. There was simply no easy way to see booking pace against capacity for each week, so rates were changed by feel, and rarely.

Why rates stay flat

Rental pricing lives in the rental system as rate tables, often complicated, often edited by one person. Changing them is fiddly and risky, so it happens seldom.

  • Nobody can easily see forward utilisation by group and week.
  • Booking pace, how quickly a week is filling compared with last year, is not tracked.
  • Competitor rates are checked by hand, occasionally.
  • Broker channels have their own rates, updated separately.
  • Rate changes are not recorded, so their effect cannot be judged.

What flat rates cost

Money left behind on busy weeks, idle vehicles on quiet ones, and a lot of time spent debating rates without data. It also affects fleet decisions: without knowing which weeks and groups are genuinely short, it is hard to decide whether you need more vehicles or better prices.

The rate view we build

  1. For each branch, vehicle group and day ahead, the view shows vehicles available, vehicles booked and resulting utilisation, drawn from your rental system.
  2. Booking pace compares how full each future week is now with how full the same week was at this point last year.
  3. Competitor rates for comparable vehicles and dates are collected from public booking pages, where that is permitted, and shown alongside yours.
  4. You set rules, such as raising a group's rate by a set step when utilisation passes a level you choose, with a ceiling and floor.
  5. Suggested rate changes are shown for approval, or applied automatically within your limits, and pushed to your booking engine and broker rate files where they accept updates.
  6. Every change is logged with the reason, so you can see later which changes helped.
SignalWhat it tells you
Forward utilisationHow full a group will be on each day
Booking paceWhether a week is filling faster or slower than usual
Competitor ratesWhere your price sits in the local market
Change logWhat you changed and what happened next

Rules you control, not a black box

We deliberately build this around rules you set and can read, not a pricing model that changes rates for reasons nobody can explain. You decide the steps, the limits and which groups and branches it applies to. Pricing is a commercial decision and it stays yours. The view just gives you the information to make it more often, and the means to act on it without editing rate tables by hand.

Rates that follow the diary

Take the half-term week at a regional branch. Six weeks out, the view shows the people carrier group is already fuller than it was at the same point last year, and local competitors have started to move their prices. A rule you set earlier suggests a step up for that group and week. The pricing lead approves it in a minute, the booking engine and broker rate files update, and the change is logged for review after half term.

The person responsible for pricing opens one view each morning, sees which weeks are filling fast and which are slow, and approves a handful of changes. Busy weeks are priced for demand before they sell out. Quiet weeks get attention while there is still time to fill them.

Signs this is your business

  • Rates change a few times a year at most.
  • Busy weeks sell out early at standard rates.
  • You check competitor prices by hand, occasionally.
  • Only one person understands the rate tables.
  • You cannot say how a rate change affected bookings.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Will this set our prices automatically?

Only within rules and limits you set, and only if you choose. Many firms start with suggestions they approve.

Is collecting competitor rates allowed?

It depends on each site's terms. We only collect from sources where it is permitted, and you can skip this part entirely.

Does it work with broker rates?

Where brokers accept rate updates by file or API, yes. Otherwise it gives you the new rates to enter.

Do we need a lot of historical data?

Last year's bookings help with booking pace. Without them, the view still shows forward utilisation, which is the most useful part.

What drives the cost?

The number of branches and groups, how we read and update your rental system's rates and whether competitor rates are included.

Keep reading

More on Problems We Solve

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