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Dollar Thrifty Automotive Group Captures Sales Opportunities,
Drives Improved Forecasting with JDA


January 9, 2007 - Tulsa-based Dollar Thrifty Automotive Group (NYSE: DTG), with revenues of $1.5 billion, is a giant in the car rental industry.  Managing more than 114,000 cars from more than 250 Dollar Rent A Car and 340 Thrifty Car Rental locations in the United States – both corporate and franchised stores – the company has more than 1,600 locations worldwide.  In its first year utilizing JDA’s Rental Car Revenue Management System (RCRMS), the company improved its bottom line by more than $7 million by leveraging JDA Software Group’s technology to more accurately forecast demand and reduce “turn away” business.
“When we began working with JDA several years ago, Revenue Management for the rental car industry did not exist,” said Stewart Brown, Staff Vice President of Revenue Management for Dollar Thrifty Automotive Group, Inc.  “With RCRMS we put all our data in one place in a similar format for better analysis, then we crunched the numbers.  The new system clarified the supply-demand process and helped DTG shape a new business philosophy.  Now we also measure the business we do not get, which makes a big difference in how we sell.”  Brown explains that DTG was very good at renting the cars it had on hand, but when a location ran out of cars, customers had to be turned away.  This created a significant amount of lost revenue.

“Automated Demand Forecasting” Delivers Winning Results


Brown is the first to say it is smart to turn down business that cannot pay the appropriate price; but when a Dollar Rent A Car or Thrifty Car Rental location turned away customers because it did not have cars to sell, it was losing money.  “Before we automated our demand forecasting with JDA we were not choosing how many cars we rented.  We took reservations until our stock was gone.  Today we look at no-shows, historical demand trends and other factors that help us sell the right car to the right person at the right time for the right price.”  The key is accurately forecasting demand for each store, which eliminates or reduces ‘availability turndowns’ while optimizing rates. “The first year we used RCRMS, we reduced turn away business by approximately $7-9 million and the improvements are continuing today.  We are winning business now we may have turned away before.”

Dollar Thrifty Automotive Group, Inc. is an ROI-focused company.  “We look at every project for a strong payoff,” said Brown.  “Since installing our Revenue Management solution and analyzing the entire supply-demand process, we are doing more business.  We were also able to reassign nearly half our pricing office staff while doubling our revenue in the same period with the help of the new technology.” 

Sophisticated Supply Analysis Improves Profitability

Dollar Thrifty Automotive Group’s internal pricing team has continued to refine its rate and supply optimization procedure by adding new functionality to their RCRMS.  Based on its extensive knowledge of the industry, DTG enhanced its system by factoring competitive price information into rate-setting process for even better sales performance.

JDA’s Revenue Management group just completed a second project with Brown’s team at DTG to analyze the internal supply side of its car rental business.  Brown noted that the demand side of the industry is under a microscope, but the supply side – how cars are assigned to specific store locations – has not been analyzed as thoroughly.  “We adjust over a million price points every day by applying technology.  We are more sophisticated today and looking for more capability.  If we can use technology to also accurately analyze changing market forces to put the optimum supply of cars at each store, we will have another tool to improve profitability.” 

JDA and DTG Share Vision of Unified Supply-Demand Optimization 

JDA is also working with Brown and his team to identify a vision of best technology strategy for the next five to 10 years.

In its most recent engagement with Dollar Thrifty Automotive Group, Inc., JDA is studying the possible development of an advanced global system that would more precisely forecast customer demand in every DTG market and combine it with the ability to accurately identify the optimum supply of inventory required at every DTG location to meet that demand.  The result of the study could be a truly visionary system that predicts demand, optimizes rates, and fulfills demand precisely each day.  “Dollar Thrifty Automotive Group is collaborating with JDA to evaluate a groundbreaking ‘unified’ mathematical business process for the future,” said Brown.  “JDA’s team worked hard and came up with techniques we wouldn’t have.  Many of their insights are helpful and original.”

“Market activity is the hand a company is dealt,” Brown concluded.  “How you handle it, using Revenue Management to optimize the available business, is where you make your money.” 

About Dollar Thrifty Automotive Group
Dollar Thrifty Automotive Group, Inc. is a Fortune 1000 Company headquartered in Tulsa, Oklahoma. Driven by the mission, "Value Every Time," the Company's brands, Dollar Rent A Car and Thrifty Car Rental, serve value-conscious travelers in approximately 70 countries.  Dollar and Thrifty have over 1,600 corporate and franchised worldwide locations including over 800 in the United States and Canada. The Dollar or Thrifty brands operate in virtually all of the top U.S. airport markets; both brands operate in all of the top Canadian airport markets.  The Company's more than 8,300 employees are located mainly in North America, but global service capabilities exist through an ever expanding international franchise network.

About JDA Software’s Services Group
JDA Software Group’s TTH Group has pioneered industry leading pricing and revenue management solutions.  Today, leaders in the service-based Travel, Transportation and Hospitality industries leverage JDA’s expertise to maximize their profits.    JDA clients include Harrah’s-Caesars Entertainment, Omni Hotels, Princess Cruise Lines, Continental Airlines, TUI (formerly Thomson Holidays) and Continental Airlines Cargo. 

About JDA Software Group, Inc.
With its acquisition of Manugistics finalized on July 5, 2006, JDA® Software Group, Inc. (Nasdaq:JDAS) is the global leader in helping more than 5,500 retail, manufacturing and wholesale-distribution customers in 60 countries realize real demand chain results. By capitalizing on its industry position and financial strength, JDA commits significant resources to advancing the JDA Portfolio® suite of supply and demand chain solutions. JDA Portfolio software enables high-performance business process optimization and execution from the manufacturer’s plant, through distribution to an end customer or a retailer’s shelf. With offices in major cities around the world, JDA employs the industry’s most experienced supply and demand chain experts to develop, deliver and support its solutions. For more information, visit, email or call 1-800-479-7382. 



Sheila S. Blackwell 
JDA Software Group

Julie Keyser-Squires
Softscribe Inc. 


Also See: JDA® Software Group Adds Revenue Management Professionals to Services Industries Division; JDA grows Revenue Management Services with three industry professionals / December 2006
What Makes a Good Revenue Manager? More Than You Think; The best can raise RevPAR 3 to 7%. Use these tips to spot top talent and improve your chain’s bottom line / October 2006

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