“Static prices are bad for both customers and companies. Previously, our customers paid the same price in January, during quiet weekends, and in August, when the season is at its hottest’, says Mikko Erkkilä, CEO of PakuOvelle.com.
PakuOvelle.com, Finland’s largest car rental company specialized in van rentals, implements Priceff’s dynamic pricing solution. Priceff’s algorithm will calculate an optimal price for every bookable time slot. The price of each time slot is updated once per hour. During quiet times, the price may be as low as five euros per hour, and as demand increases, rental prices rise and operations remain profitable.
“We are not able to predict which days of the year will be quiet, and therefore when prices should be lowered. Now, the algorithm calculates the right price for us at all times, during quiet times as well. There is also no need to wake up in the middle of the night to react to any sudden changes in demand – the algorithm automatically raises prices as demand increases. Now, I can sleep well at night, ”says CEO Erkkilä.
PakuOvelle.com will use dynamic pricing to increase market share and squeeze low-quality car rental companies out of the industry.
“Priceff’s dynamic pricing is perfect for companies like PakuOvelle.com where capacity management and pricing bring a significant competitive advantage,” says Priceff’s CEO, Heikki Lummaa.
PakuOvelle.com is a Finnish growth company founded in 2004 specializing in van rental.