The conservative approach for August proved to be the right approach. Universal maintained profitability as well as 100% rental capacity while entering its seasonal lull. On an interesting note Universal's competitor has not seemed to adjust its pricing for the slow season. This competitor has shown a track record of being a conservative pricing copy cat for the past twelve months. Universal's competitor seems to be much more of a follower than a leader.
This past year has proved to be a successful year for Universal with cumulative profits tipping $143 million.
These profits validate the strategy of maximizing sales as the main focus for the Florida market.
Orlando was a particularly good region for Universal as we were able to focus on profitable rate increases due to the high overall traffic of travelers in the region.
Through out the course of the year I found my self to be personally focused on the Miami region as I continually worked to make sure the Miami fleet was utilized at 100% capacity. I found the break-even calculator to be a very useful tool in maximizing Miami weekend rentals. It was also important for me to understand the difference between the Orlando and Miami markets to structure pricing that would ensure 100% fleet utilization.
Overall this was a good year for Universal!
Friday, November 5, 2010
August 2012
The success of the past ten months have been good for Universal. July's rate increase was a success. Universals fleet has bee utilized at full capacity for six months straight.
Market forecasts and sale history are indicating that Universal is starting to enter its seasonal lull. With the exception of Tampa, car rental demand has plateaued in Florida.
In light of the current market outlook, it would be prudent to approach the slow season with caution. I have decided that it would be wise to throttle back the Miami weekend rental rate by $0.50 and hold the remaining pricing steady with no rate increases for the month.
Market forecasts and sale history are indicating that Universal is starting to enter its seasonal lull. With the exception of Tampa, car rental demand has plateaued in Florida.
In light of the current market outlook, it would be prudent to approach the slow season with caution. I have decided that it would be wise to throttle back the Miami weekend rental rate by $0.50 and hold the remaining pricing steady with no rate increases for the month.
July 2012
As similar to June, July has proved to be yet another successful month for Universal. The rate increase has proved to be successful while maintaining rental capacity at 100%.
July has shown a good increase in demand in the Miami region for weekday and weekend rentals. Fortunately, this demand will allow for a larger rate increase for Miami weekend rentals.
With this new increase in demand I decided to structure another round of rate increases across the board for Florida.
July has shown a good increase in demand in the Miami region for weekday and weekend rentals. Fortunately, this demand will allow for a larger rate increase for Miami weekend rentals.
With this new increase in demand I decided to structure another round of rate increases across the board for Florida.
June 2012
So far the past eight months have proved to be a good time to be in business. The May rate increase allowed continual profits for Universal. Universal has also continued to maintain its Florida rentals at 100% capacity for the last four months.
Universal's competition is still mirroring our rate increases.
As demand has been increasing it would be practical to increase rates for the upcoming month of July.
Universal's competition is still mirroring our rate increases.
As demand has been increasing it would be practical to increase rates for the upcoming month of July.
May 2012
The rate increase for April showed to be successful while still maintaining 100% capacity for fleet rental. Universal's market share has remained steady in all regions. Demand has also increased in all regions as well. Demand increase seems to indicated that there is still untapped value in Universals fleet. I decided to again increase rental rates in all regions to capitalize on current demand. The most aggressive rate increases will take place in Orland where demand is the strongest.
April 2012
Sale strategy is continuing to prove successful as last months rate increase continued to profit Universal.
Demand in Orlando and Tampa has shown to be steadily increasing. Weekend demand in Miami has leveled out slightly.
With general demand still up it seems logical to try to find the threshold of the maximum car rental rate.
I decided to again raise rental rates across the board in all regions, weekday and weekend alike. However this time the rate increase would be more conservative.
In tracking Florida market metrics, we have found that Orlando continues to be split for business and leisure travel. Miami and Tampa show to be areas that travelers frequent more for business.
Demand in Orlando and Tampa has shown to be steadily increasing. Weekend demand in Miami has leveled out slightly.
With general demand still up it seems logical to try to find the threshold of the maximum car rental rate.
I decided to again raise rental rates across the board in all regions, weekday and weekend alike. However this time the rate increase would be more conservative.
In tracking Florida market metrics, we have found that Orlando continues to be split for business and leisure travel. Miami and Tampa show to be areas that travelers frequent more for business.
March 2012
Last months rate increase was very successful. The rate increase allowed Universal to continue to profit while maintaining 100% utilization of fleet capacity in all Florida regions for weekday and weekend rentals.
Universal's competition has continued to mirror pricing adjustments with the exception of the weekend Miami rates. Our competition has held steady on their Miami weekend rate of $33 for several months now.
As we have continued to increase our prices to meet demand we have been targeting our most aggressive price increases in Orlando where demand is the highest.
As demand continues to increase in all regions, I have decided that it would be wise to increase rates again for the upcoming month.
Universal's competition has continued to mirror pricing adjustments with the exception of the weekend Miami rates. Our competition has held steady on their Miami weekend rate of $33 for several months now.
As we have continued to increase our prices to meet demand we have been targeting our most aggressive price increases in Orlando where demand is the highest.
As demand continues to increase in all regions, I have decided that it would be wise to increase rates again for the upcoming month.
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