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 Hosted on Ausha. See ausha.co/privacy-policy for more information.

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. Hosted on Ausha. See ausha.co/privacy-policy for more information.

« 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 Hosted on Ausha. See ausha.co/privacy-policy for more information.

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 Hosted on Ausha. See ausha.co/privacy-policy for more information.

"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 Hosted on Ausha. See ausha.co/privacy-policy for more information.

"The only element between you and the success you crave is yourself" Episode abstract 1/ System-Mind Synergy: Explore optimizing the synergy between our systems and mental faculties for peak performance. 2/ Adapting to Volatility: Uncover strategies for maximizing mental agility amidst extreme market volatility and uncertainty. 3/ Harnessing Past Experience: Evaluate how leveraging past experiences can bolster our resilience and adaptability to embrace discomfort and change effectively. 4/ Cultivating a New Mindset: Implement actionable tactics to cultivate and embed a growth-oriented mindset, fostering innovation and adaptability in dynamic environments. Adrian, with over 15 years of experience in car rental in Ireland working for Enterprise and Sixt in various capacities such as Operations, Channel Management, and Sales, understands the pivotal role car rental operations play in serving customers, often being their initial point of contact after long flights. Transitioning from the bustling front office to the quiet back office was initially jarring for him, prompting introspection about his career path. He delves into the power of thought, citing statistics that reveal how people's thoughts shape their realities. Adrian advocates for conscious reprogramming of the subconscious mind to foster positive change gradually, emphasizing the mind's inability to distinguish between reality and imagination. He urges professionals to focus on their own businesses rather than fixating on competitors, stressing the importance of recognizing one's unique value proposition. Adrian encourages embracing change incrementally, acknowledging that personal growth necessitates accepting failure and experimenting with resilient, profitable ventures. He outlines three types of goals—A, B, and C—highlighting the significance of pursuing goals driven by burning desires. Visualizing success mentally is underscored as a potent tool in achieving these objectives. In essence, Adrian advocates for a proactive mindset, strategic focus, and a willingness to evolve in the dynamic car rental industry. Chapter 00:00:00 Adrian Treacy introduction 00:19:20 How the mindset approach got started 00:34:30 Revenue management and mindset 00:47:14 Setting a new paradygm, our new mental software 00:53:45 How to overcome fear as a driver not to start 01:13:14 3 types of goals A, B, C till the end Hosted on Ausha. See ausha.co/privacy-policy for more information.

Guillaume Gery est l'un précurseur dans le yield management en location de voitures depuis 20 ans. Il est parti d'un pricing figé, imprimé dans des catalogues, vers une optimisation plus flexible. Il réaliser que dans une haute saison, il y a des basses saisons et qu'il y a aussi des hautes saisons en période de faible activité qu'il faut également optimiser. Comment aborder la culture du changement? En accompagnant les collaborateurs pour les faire grandir associé à un système d'information efficace supporté par un esprit pionnier et permettant d'embarquer tout le monde avec un cadré autorisant l'erreur. Les éceuils sont nombreux et il faut accepter d'abandonner un confort, une sorte de maitrise ouatée finalement dangereuse. A court terme, la mise en place du yield coûte de l'argent. Mais avec une vision stratégique à long terme, l'impact sur le compte d'exploitation et sur l'amélioration des compétences des collaborateurs sont des gains majeurs pour l'entreprise. Le Yield permet de repenser son organization car avec cette méthode, la société n'est gérée de la même façon. La puissance de calcul est un soutien essentiel pour accélérer l'analyse. Donc, il faut être un peu fainéant pour laisser la machine faire ce pour quoi elle est faite. Mais un équilibre entre l'humain et la machine reste essentiel : la machine est puissante pour faire ce qu'on lui a demandé de faire (éxécutant) ; l'humain conserve son intuition et demande à l'ordinateur de lui fournir les données explicatives (tacticien). Un conseil : l'agilité et la rapidité ne doivent pas prendre le pas sur la prise de recul et l'analyse. Quels sont les bonnes aptitudes pour un yield manager? La compétence technique peut toujours être apprise en interne ou via l'apport extérieur. Mais l'état d'esprit avec l'envie de se dépasser est essentiel pour être un bon revenue manager. "Mon grand-père disait qu'il n'y a pas de mauvais outils, il n'y a que des mauvais ouvriers" Séquence - 0:00:00 Présentation de Guillaume Gery - 0:15:35 Accès aux data et nouvelles mentalitésles : les débuts du yield - 0:28:20 Yield : gains financiers et nouvelles compétences - 0:40:54 Sois fainéant et laisse travailler la machine. - 0:57:08 Le profil du bon revenue manager - 1:10:03 Comment continuer à apprendre ? - 1:19:15 le conseil de Guillaume à Guillaume Hosted on Ausha. See ausha.co/privacy-policy for more information.

Ce podcast est produit par WeYield, la société de Yield Management et réalisé par Emmanuel Scuto. L'approche tarifaire peut avoir une impact fort sur la valeur. Elise a expérimenté ces techniques d'optimisation du revenu apprises au cours de ses expériences passées (Club Med, Louvre Hotels, Media) sur son premier bien immobilier. L'idée lui est ensuite venue de créer J'Affiche Complet pour aider les propriétaires de locations saisonnières à mettre en place et gérer leur grille tarifaire et optimiser leur distribution. Depuis 2023, Elise organise un évènement majeur pour ce secteur avec comme point d'orgue l'événement "Rendez-vous de la location saisonnière" (mai 2024 pour la prochaine édition). Nous apprenons au cours de cet échange que le Yield management est souvent confrontée à deux obstacles humains : d'une part, certains décisionnaires sont très motivés pour déléguer cette tâche à un expert ; d'autres perçoivent sa mise en place comme une perte de responsabilité. Il est crucial de partager une vision et un objectif global clairs. Il est également essentiel de bien comprendre les objectifs des différentes parties prenantes afin d'aligner la stratégie Les caractéristiques d'un bon gestionnaire du revenu sont les suivantes : - Excellentes compétences en communication (orales et écrites), parfois dans un rôle d'évangélisateur interne et externe. - Capacité à mener le changement avec une approche pédagogique. - Souci de la qualité des résultats. - Forte appétence pour les chiffres, une maîtrise excellente d'Excel et une rigueur extrême. - Capacité à remettre en question les pratiques établies. Séquences - 0:00:00 à 0:07:35 Présentation d'Elise Ripoche - 0:07:35 à 0:28:20 Les débuts en optimisation d'achat d'espaces publicitaires et dans l'hôtelerie - 0:28:20 à 0:43:50 C'est quoi un bon revenue manager? Comment adresser le travail en distanciel? - 0:43:50 à 0:54:00 Le why de J'Affiche Complet et l'approche de la tarification dans des projets de vie - 0:54:00 à 1:05:45 Le How de J'Affiche Complet et la prise de risque avec le Rdv de la location saisonnière - 1:05:45 à 1:17:15 Comment vulgariser le Revenue Management? - 1:17:15 à 1:23:55 L'accompagnement humain avec un expert et le peer-training - 1:23:55 à 1:29:15 Le feedback de l'équipe et les mastermind pour continuer de s'améliorer - 1:29:15 à jusqu'à la fin Le conseil d'Elise aujourd'hui à la Elise d'hier Hosted on Ausha. See ausha.co/privacy-policy for more information.

How Tom Wood Automotive-Sixt franchisee in US did to manage the best way possible the Covid lockdowns? How to maximize profitability prioritizing the revenue per unit per month over utilization? What a pretty refreshing look of revenue optimization! In this episode, Emmanuel Scuto, founder and CEO of WeYield, talks with Jared Kinnaird, Revenue and Operation Director at Tom Wood Automative (Sixt franchisee in USA). They talk about - 2008 and Covid crisis and the learnings to face them - The higher price is, the better the client is to treat the fleet - Utilization is not the main goal but the daily dollar average to maximize the revenue per unit. - "Try tomorrow being better than yesterday" During Covid (2021-2022), Tom Wood Automotive implemented a cost-saving measure by reducing the workweek from 5 days to 4 days, resulting in significant cost reduction without any layoffs. Going forward, the car rental fleet will not be reduced to the extent it was in 2008 and 2020. Jared believes that having a larger proportion of the fleet at risk presents better profit opportunities after the holding period. However, this tactic is part of a broader strategy to reduce both the car rental fleet size and utilization, aiming for lower mileage and cleaner cars for sale. In 2019, at Minneapolis airport, rental days increased by 16%, while rental revenue grew by 120%. It's important to consider more than just direct fleet costs. At Sixt Tom Wood Automotive, Jared also focuses on the softer side of costs. When facing an excess fleet, it's necessary to lower prices to rent out those cars. On the other hand, if the fleet is correctly sized or slightly under-sized, rental costs can be increased as fewer rentals are needed to cover the expenses. After conducting a thorough revenue management analysis, the owners realized that it's beneficial to wait longer before entering the market to capture more profitable transactions. Jared's focus is on maximizing the revenue per unit per month rather than maximizing utilization. By reducing the volume and increasing the average daily dollar amount, the company has succeeded in improving profitability. Nota: WeYield apps have introduced the RevCar indicator (revenue per available car) to directly track this on the performance graphs. Discover in this episode: 0:00:00 to 0:07:00 introduction of Jared Kinnaird 0:05:10 to 0:14:20 Learnings from 2008 crisis to prepare 2020-21 Covid 0:14:20 to 0:19:00 Car market perspective on the used car 0:19:00 to 0:36:15 Yield stragegy: reduce utilization to maximize profit. Learn how 0:36:15 to 0:46:00 The management shifted his mindset on making more money on revenue per unit instead of focusing on utilization 0:51:05 to 0:59:00 "level-10" organizational meeting 0:55:30 to 1:20:15 Jared's revenue and general management tips 1:20:15 to end Peer to peer market evolution References: - To follow Jared https://www.linkedin.com/in/jared-kinnaird/ - Nathalie Aubin what about fleet optimization (webinar) https://youtu.be/UeB6Zi4mQOA - EOS software https://www.eosworldwide.com/ - Turo peer-to-peer https://turo.com/ - Tow Wood Automotive https://www.tomwood.com/ - Sixt Indianapolis https://www.sixt.com/car-rental/usa/indianapolis/#/ Hosted on Ausha. See ausha.co/privacy-policy for more information.

How will the car rental evolve in the close future while they are under the pressure of the OEM, starting to put their tow into the hire mobility business and the new generation that does accept the traditional way of servicing them? Why are legacy car rental operators so scared about techno? In this episode, Emmanuel Scuto, founder and CEO of WeYield, talks with Julian Espiritu, Managing Director at Abrams Mobility, the Leading consulting firm dedicated to car rental for the last 40 years. They talk about - car sharing innovation launched by ZipCar - the change of rental approach under OEM pressure - the technology has to drive the car rental process Zipcar is a car-sharing company that provides automobile reservations to its members, billable by the minute, hour or day; members may have to pay a monthly or annual membership fee in addition to car reservations charges. Zipcar was founded in 2000 by Antje Danielson and Robin Chase, and in March 2013, was acquired by Avis Budget Group. From day one, Zipcar owned its fleet providing a vehicle and the driver pays the car usage while all costs are included (fuel, parking, maintenance). A study proved that for every one new car input into ZipCar, 9 individual cars would be removed from the road. Demand elasticity was monitored precisely to adapt pricing as well as capacity available using advanced data analysis. But Robin and the genuine team had no car rental experience. Thus, melted the techno team with car rental experts to invent a new approach that change the look on the industry. How the car manufacturers known as OEM will impact the car rental business in 5 to 10 years from now? How the new generation will accept the constraints in the booking and rental process? Car rental operators are mostly afraid about implementing To follow Julian, https://www.linkedin.com/in/julianespiritu/ Discover in this episode: 0:00:00 to 0:07:00 introduction of Julian Espiritu 0:07:00 to 0:15:45 amazing concept of ZipCar on a TV show late 90's 0:15:45 to 0:32:00 how pricing elasticity was used to optimize the demand in New York 0:32:10 to 0:40:08 ZipCar took off in 2007 before to be acquired by Avis for 500 million USD in 2009. 0:40:08 to 0:48:00 15yrs afterwards, where does the car sharing stand? 0:48:08 to 0:55:30 car rental will change under the pressure of OEM 0:55:30 to 1:08:55 will the legacy car rental operators lose the techno game? 1:08:55 to 1:17:10 how the new generation will consume the car rental service in a "Tesla" way of treating the customer 1:17:10 to end References: Abrams Mobility Advisors https://www.abramsmobility.com/abrams-group Zipcar https://www.zipcar.com/ Turo (ex RelayRide) https://turo.com/ Uber https://www.uber.com/ GetAround https://www.getaround.com/ Hosted on Ausha. See ausha.co/privacy-policy for more information.