Rate shopping in the car rental industry is the systematic and continuous monitoring of the market across competitors and sales channels. It can be carried out manually, but the process is now largely automated.
Rate-shopping software checks prices and vehicle availability for different pick-up locations, dates, rental lengths, car types and booking markets. The same rental can be priced differently depending on where and how the customer books.
To make sure the comparison is fair, companies need to compare like with like. Rental companies may use different names or categories for similar vehicles, so rate-shopping software matches them into comparable car groups. Companies may also adjust rates to account for differences such as taxes, mandatory fees or included services.
This helps rental companies see how their prices compare with the market and how prices and availability change over time. Historical data can reveal useful patterns, such as when competitors tend to raise or lower their rates or when certain car categories begin to sell out.
Rate-shopping data is an important input, but it does not determine the price on its own. Rental companies often combine it with their own booking data, demand and fleet availability to make better pricing decisions. Pricing software can then use this combined data to recommend price changes or adjust prices automatically through dynamic pricing.
