Posted by Josi Kytle on May 13th, 2009
Following on from blog post last week, today I’ll cover the “Demand vs Supply” component of my explanation on pricing. Like airlines, the number of people who want to rent a car (or get on a flight) versus the availability of cars (or seats on a flight) drives the price of that car (or the price of that flight!). So, when there becomes less supply (normally closer to the date of pick-up), the price will increase for the remaining demand. This means booking close to pick up is likely to be more expensive than booking further in advance.
Booking in advance allows for Avis – like airlines – manage their business more efficiently (e.g. having the cars in the right places and people there to support) thus makes the costs of the car less for the business and for the customer.
As we know that price is a key driver for all our customers, we aim to provide various options to ensure our customers get the best prices. I have highlighted some below:
> Email subscribed customers – we send out special offers or exclusive deals to our most loyal customers. This helps customers plan in advance or find out about hot deals.
> Latest Offers page (available at http://www.avis.co.uk/LatestOffers) – we offer a full list of our latest deals worldwide. It’s a good place to check first!
> £42 weekend rate – As we know UK customers are more likely to travel domestically in 2009, we wanted to provide a good rate for weekend getaways. There is some exclusions and I recommend that you book in advance to avoid disappointment, but it’s a great rate (up to 40% off previous levels).
> Sales – in periods of low customer demand, we often run sales for worldwide destinations. Again, it helps to book in advance and some exclusions apply. But it does give customers the option to reduce their costs if they plan in advance.
We do know that in these trying economic times price is a key driver for customers and we need to do our best to provide a good product at a competitive rate. On a daily bases we review our prices to ensure that they are motivating whilst enabling us to sustain our business.
I hope this provides a bit more background and information to our custmers. As always, any thoughts or questions are welcome!
Thank you,
Josi