Thursday, May 27, 2010

#3

Based on the trends I see, possibly because of seasonality I will need to adjust prices accordingly.
In September, market share wasn't great, in October utilization went up, however market share did go down, however profits were up. Now I will also be using customer types into this, as far as business or leisure and looking at November market share looks like things are good as I haven't lost market share not gained but profits are again on the rise. The forecast shows a slow down and I may need to again cut prices to raise usage

 =============

Orlando

Month    Us Weekday    Comp Weekday    Us Weekend          Comp Weekend
Oct           $41.00               $43.00                   $34.00                          $36.00
Nov          $45.00               $40.00                   $35.00                          $34.00 


Miami

Month    Us Weekday    Comp Weekday    Us Weekend         Comp Weekend
Oct          $46.00               $54.00                     $36.00                           $33.00
Nov         $51.00               $51.00                     $34.00                           $33.00


Orlando capacity utilization is always at 100% for both weekends and weekdays so I think it might be okay to lose some money on the number of vehicles rented as long as the actual per vehicle cost is higher than before.
Miami on the other hand needs some tweaking being that weekend utilization is only up by 9% from October, not bad for one month but I think that by working with prices, I can get weekends to be higher while not losing much on the weekdays as those are probably business travelers and will stay where they are.

Orlando has more leisure than business travelers than Miami. Market share is close to even in mid 40s, I think I can do better by segmenting the two cities by travel type and adjusting prices accordingly. Miami's net income is nearly twice that of Orlando which seems to correlate to the higher business travel breakdown in Miami.
 ****************
After advancing the simulation, this is where I found myself in December. Basically what I thought would happen, happened. Except for that I went too far in Miami, I forgot that what comes up must come down and being that the competitor was on an up, it was in the forecast to go down, which they did and this ate into my profits in Miami, however this worked very well in Orlando, which really was the one I was concerned about.

Below images are as follows - Miami (TOP), Orlando (Bottom)




 










 
 
 
 
 
 

No comments:

Post a Comment