It’s not always easy to be entirely objective when determining car rental rates. We tend to consider the expense of repairs, how much time and effort we put into them, costs, and how much we pay on insurance, road tax, maintenance, and so on. It is most advisable to set a lower price for your initial rents and then increase it once you have your first rentals, comments, 5-star ratings, and quick reaction time.
How do different sorts of events affect car rental rates as the number of trips, travellers, and events grows? How do price analysts use data-driven methods to assess the impact of events and maximise revenue? The answers to these questions can be found in what RateGain refers to as the ways that influence car rental pricing.
5 Ways That Events Influence Car Rental Pricing
Fuel Consumption and Engine Type
Given the current high cost of fuel, the most important factor to consider is fuel consumption. Renters would normally prefer the automobile with the lowest fuel consumption if they can save money by renting a somewhat more costly car, therefore a lower fuel consumption may allow you to raise the car rental rates. The engine type is also significant. Diesel engines are preferred over gasoline engines, and automobiles that run on LPG are even more complicated since some people avoid them, despite the fact that they can save even more money on gas.
Insurance And Other Extras
If your automobile has KASKO – all-inclusive policies, you can work for car rental price optimization and charge a greater fee because the renter is taking a reduced risk. If the automobile comes with any extra types of equipment, make a note of them in the vehicle description. Extras normally do not alter the car’s price, but they may assist the renter in determining whether or not your car is the perfect one for the user.
Car Brand And Model
It’s also crucial to consider the brand and model. Although it has no effect on the majority of car rental rates, it can have an impact on the pricing of certain brands. Opinions differ, and each brand has its ardent supporters as well that only prefer driving one kind of a car. This often creates an impact and can result in car rental price optimization.
Time of The Year
Car rental is a seasonal business, with higher demand in April and lower demand in September. If you raised the price in the spring and summer, remember to lower it in the fall. Higher the demand for the events, better car rental price optimization. So, make sure you value your car rental rates according to the right time of the year.
Age Of The Car
The lower the price, the older the car. Because as time passes, we sometimes forget that our car is just 10 or 15 years old. Every five years, the cost of renting an automobile falls dramatically. Cars that are less than 5 years old have a greater price, but the difference will be minor because age will not be a determining factor. Although the price of automobiles older than ten years is lower, the fuel efficiency, engine, and car type become more significant. When a vehicle is more than 30 years old and has achieved retro status, the price begins to rise again, especially during the summer when such automobiles are in high demand for weddings and other events.
The majority of automobile rental firms believe that the popularity of an event is the most important factor. Events having national or international renown draw more people, resulting in increased demand and, as a result, higher vehicle rental pricing. Even if they are less popular events that are unlikely to generate considerable car rental demand on their own, rates go up when there is a cluster of events around the same time.
Now when you know how to judge and increase your rental car rates, are you ready to rent it and get good returns? If yes, then head to RaitGain and get the best price value for your rented car.
