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The experience of our car rental clients in Réunion at the beginning of this year perfectly highlights an often-neglected reality: it is impossible to create non-existent tourist demand ex nihilo. Faced with a decline in reservations, the temptation to quickly adjust prices is strong. However, decisions gain relevance when you step back and rely on a structured, analytical Revenue and Yield management approach.
1 - First, Ensure the Accuracy of Fleet Data
Everything begins with your actual capacity. It's not enough to rely solely on the current data from your management tool (operational systems like Wheels, Rentway, or Renteon). You must anticipate vehicle arrivals (or infleeting) and departures (or defleeting) by integrating the Annual Budget Objectives into your management. It is often the case that purchase orders are not entered into the operational system while discussions are still being finalized.
The fleet plan configuration module included in the WeYield Apps allows you to model future changes, even if they have not yet been confirmed by purchase orders, providing a reliable and actionable projection. This is the starting point that conditions the entire analysis.
2 - Monitor Constrained Demand and Structure Your Pricing Tactics
If tourists and travelers aren't booking, action should not be guided by haste. A regular analysis of constrained demand helps you understand if the weakness in reservations is intrinsic to the market or specific to your business (air arrivals, capacity offered, utilization rate compared to previous years, etc.).
The WeYield apps have access to airline reservation data through a partnership with Amadeus. The user can view the status of recorded bookings (made much further in advance than car reservations), which provides visibility into future attendance trends, useful for conversion into rentals. The Air Analytics Module also allows for comparing this trend with the same period last year to measure changes between two seasons.
3 - Verify the Coherence of Your Price Positioning in the Market
The competitive benchmark only comes into play in the third step. Check that the price you have chosen is reasonable in the market... but NEVER change your prices in reaction to your competitors' knee-jerk actions! Doing so helps you avoid "de-positioning," which erodes margins, image, and competitiveness. Market analysis serves to validate your choice, not dictate it.
Assistance with Price Adjustment (Manual)
Adopt a tactical framework: position your rates based on "anchors" linked to your utilization rate. At a low utilization rate (<20%), position yourself at the "low or bottom of the market"; at an intermediate utilization rate, use the median or quartile 1, etc. This framework prevents irrational reactions and allows you to navigate with method and composure, even in a storm. As soon as demand accelerates and is certain, it will be appropriate to gradually increase the price positioning.
Automatic pricing strategy with WeYield's Pricing Insights (Automatic)
WeYield launched a new automated price recommendation module in early 2026 that exclusively considers the car rental company's internal data and performance. This allows tactics to be automatically adjusted based on recorded utilization, as well as demand acceleration and future forecasting based on AI algorithms. And without using competition which may drives your prices down!
4 - Above All: Actively Stimulate Demand through Marketing Actions!
During slow periods, marketing action becomes a strategic lever. For example, you can launch CRM actions on your customer base to run targeted emailing campaigns: contact those who visited at the same time last year and offer them a special deal (discount, upgrade, private sale). This type of action can generate additional volume where generic market demand is lacking.
Furthermore, increase your brand's digital presence: update your website, regularly publish content about destination events, and meticulously manage your natural search engine optimization (SEO) and online reputation. These efforts impact brand awareness, visibility, and the conversion rate of visitors into customers. You can supplement these foundational actions with digital campaigns on Google Ads and Meta Ads to capture qualified traffic.
To this end, I recommend watching the testimonial of Shady Younis at the Revenue Management Conference in Berlin in March 2025, where he presented his commercial and marketing strategy for stimulating direct sales: How Boost Car Rental Business Success? Shady Younis - Revenue Management Conf 2024 by WeYield.
In summary
"There is no point in slashing prices when tourist demand is absent. It is neither your product's fault nor your team's! Refocus your thinking on the quality of your data, the accuracy of your market analysis, and adherence to a data-driven pricing strategy."
It is through analytical discipline, not haste, that high-performing action plans are built.
And if you want to learn more, click to schedule a meeting.
Photo credit Etienne Girardet on Unsplash
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