The Dilemma: Competitive Pricing vs. Car Type Logic
Imagine you're using a market-driven strategy that aims to match the lowest competitor rates in real time. One of your competitors posts these prices:
- Economy (ECAR): $55
- Compact (CCAR): $53
- Intermediate (ICAR): $54
From a competitive standpoint, your pricing engine would want to match or undercut these rates. But there’s a problem: this price order contradicts the expected car type hierarchy (i.e., ECAR < CCAR < ICAR). Sticking to that logic would make you less competitive. Breaking that logic could confuse customers and erode trust.
So, which do you prioritize?
Your Strategic Crossroads
When this kind of conflict arises, rental operators are faced with two distinct options, each with its own pros and cons:
Option 1: Prioritize Market Competitiveness
- Match or beat competitors, even if the resulting rates seem out of order.
- May improve visibility and conversion in highly price-sensitive segments.
- Risk: pricing structure may appear inconsistent or confusing to customers.
Option 2: Maintain Car Type Hierarchy
- Preserve logical progression in pricing (economy < compact < intermediate).
- Reinforces your brand’s pricing credibility and customer expectations.
- Risk: may result in higher prices than competitors, reducing bookings.
Unfortunately, there’s no “set it and forget it” solution — both strategies are valid but mutually exclusive in execution.
Finding the Right Fit for Your Fleet Strategy
To get the most out of RateMonitor Elite and similar dynamic pricing tools, you need to define what success looks like for your business:
- Are you laser-focused on matching the market to drive occupancy and volume?
- Or do you value long-term brand clarity and price consistency more highly?
By identifying your priority, we can fine-tune your RateMonitor configuration to deliver pricing decisions that align with your specific goals.
This isn’t just a technical setting — it’s a strategic decision that impacts revenue, customer experience, and competitive positioning.
Our Recommendation: Start with Your Business Goals
There's no universally “correct” choice. But the best pricing strategies are those built with clear intent.
We recommend:
- Reviewing your market segment: Is it highly price-sensitive or value-focused?
- Defining performance KPIs: Are you optimizing for conversion, margin, or brand trust?
- Testing both strategies: See how each performs in real-time scenarios using A/B pricing zones.
Once you’ve defined your direction, our team can support you in implementing the right configuration in RateMonitor — ensuring your setup reflects your strategic priorities.
Let’s Build Your Strategy Together
Need help deciding between hierarchy and market alignment? Want to test different approaches before committing?
We’re here to help.
Contact our team today to explore your options and build a pricing strategy that puts your goals, and your fleet, in the driver’s seat.
