Evaluation of Dynamic Pricing Practices in Car Rental Companies: A Literature-Based Assessment

Öz

Dynamic pricing is an increasingly utilized revenue management strategy in service sectors characterized by demand uncertainty and temporal fluctuations. While it has been widely implemented in industries such as airlines, hospitality, and public transportation, its adoption in the car rental sector remains relatively underexplored in academic literature. This study examines the theoretical foundations and practical relevance of dynamic pricing approaches within the context of car rental operations. The research focuses on five distinct model categories commonly discussed in the literature: rule-based models, price elasticity and regression models, optimization models, stochastic pricing models, and Markov decision processes (MDP). The study adopts a conceptual comparative analysis based on existing literature. These models are reviewed and comparatively evaluated based on their assumptions, computational complexity, and operational applicability within the car rental industry. Special emphasis is placed on demand elasticity and regression-based approaches, which appear to be particularly suitable due to their balance of analytical rigor and operational feasibility. This study is primarily a conceptual assessment of dynamic pricing frameworks within the car rental industry; the included quantitative analysis serves as an illustrative numerical example to facilitate methodological clarity, rather than an empirical investigation intended for statistical generalizability.

Anahtar Kelimeler

• Car rental industry
• Dynamic pricing
• Revenue management
• Demand elasticity
• Pricing models

Etik Beyan

Ethics committee approval was not required for this study because of there was no study on animals or humans.

Kaynakça

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