News for the Hospitality Executive
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.
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
About JDA Software’s Services Group
About JDA Software Group, Inc.
Sheila S. Blackwell
|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|
Home | Welcome|
News | Classifieds|
Viewpoint Forum | Ideas&Trends
Please contact Hotel.Onlinewith your comments and suggestions.