MarginFuel raises cash in bid to bring dynamic pricing to rental vehicles | Stuff.co.nz

Andrew Pascoe, who previously worked for Air New Zealand and has also worked on dynamic pricing models for companies including Interislander owner Kiwirail, now heads MarginFuel, a small Wellington operation that offers a cloud-based product mainly targeting rental vehicles.

“Rental car operators have a huge amount of price points live in the market at any one time” including vehicle type, location, length of hire, across a large number of websites, Pascoe said.

“A large company could have literally millions of prices live, and the management of the price points is difficult, and optimisation of those is an almost impossible proposition without software that comes in and determines at scale what the right prices to be charging at any point in time.”

While the major players already had legacy systems to assist price management, these tended to be unwieldly, while smaller companies had not had the option in the past.

The models will not simply tell rental car companies to raise prices when demand is high – equally the software will point to the need to reduce prices.

Read complete article here:

MarginFuel raises cash in bid to bring dynamic pricing to rental vehicles | Stuff.co.nz.