This single-player simulation includes three pre-set scenarios or faculty can design custom scenarios to meet specific learning objectives The second release of this popular simulation retains the immersive experience of the original while streamlining the information available to students and the debrief tools for faculty".
In Orlando for example, it seemed like the market was just eating everything up, and I was not being aggressive enough in my pricing strategy, however Miami was a different story altogether. I think that I could have done much better and looking at some of the high scores, I gotta say WOW, it is possible but at the same time, when I see negative revenue, it makes me wonder.
Anyway, overall, very nice. What I noticed is that weekdays in Orlando were always in demand, usually the same in Miami, but weekends in Miami were always priced lower and not so much in demand, when it came to Orlando weekends, it was a bit easier to play with the numbers but it also resembled Orlando very closely.
Yes I did change strategies, at first I was paying attention to unnecessary things which did not matter in the long run, I guess I was just over analyzing and thought the sim was more powerful and inclusive than it really was.
In most of the runs I also paid attention to the per car profits and income so I would move cars accordingly, sometimes bankrupting a city to raise capital in another city that was making more money per vehicle.
Quarter 4 July - September In the last fiscal quarter Universal really placed most of its energy on increasing net profits. How were you able to target a specific group of customers through pricing? Some of the applications that should be considered include, airport advertising, e-advertising, short well-informed TV commercials and newspaper ads.
What this told me, was out of X amount of cars what percentage was being rented out. I feel from what I saw the markets were fairly fixed in price, yes the prices would change but that is expected in such an industry, especially these two cities.
The competition was constantly trying to lower prices when I went up but they were also looking at seasonality as well I think because sometimes I would go against the forecast because it seems natural to me that a work climate would have more travelers in the winter time and I could raise prices as demand was almost certain to go up.
It definitely was not an easy year to be managing Universal, but I think the challenge equaled the reward. Wednesday, June 2, Final report This is the final strategy report, unfortunately I did terribly on my last run. Universal should also increase brand equity by implementing brand management strategies.
What caused me to change was just the curiosity of what would happen if I changed my strategy. But again, at first I did try to use this information but raising prices on weekdays when business travel was up and lower on weekends when it was down and leisure was up.
The market for rental cars in Florida is intensely competitive and students must also consider the likely competitive response to their pricing decisions. However, in my last run I noticed that although one city was consistently making less money than the other, it was making more money on weekends and so I was able to move cars there and charge more on the weekends.
Surplus was a different story because having too many vehicles meant lower prices and less potential profits. It was a good year to be managing this business if only because if it was left to the current management, they would have bankrupted the company completely and blamed the competition.
When I did use it I simply wanted to see how the numbers would change, this helped me sort of see where I was going but I chose to rely on only a few indicators so as to not confuse myself and make pricing decisions difficult.
It changed a lot with market share and depending on the month and I guess season if you look at it that way. Unrented cars have associated holding costs while running out of cars is lost opportunity for profit.
Sometimes this was a good thing, sometimes not so much. Yes there seemed to be certain times of the year when prices were on the rise and other when they were going down, as mentioned earlier, I think being that both Orlando and Miami are a warm market and there are many snow-birds who travel there during this season, I could expect prices to go up in the later months of the year, and they did.
If you go here and scroll to the very bottom, this will show all of the posts from the very first bottom to this one top and this should allow for a more sequential look at what I did and what the results of each move were. Ultimately, students must analyze the economic, seasonal, and competitive forces of the rental car market and develop a pricing strategy to maximize the cumulative profit for the firm.
Although the company 12 months ago was struggling, this allowed for new management to come in and observe the situation with new perspectives. My other primary objective was to maximize profits. I know that from what was available to me, if I took more time on each move, rather then focus on writing these blog posts, I could probably do better.
I could charge more but the profit was still lower, and therefore it added up at the end of the simulation to a low score. Prices were also strongly tied-in with the competition as sometimes I would make the mistake of trying to match them, forgetting their higher marker share and power.
Some of the promotional offerings mentioned earlier in this blog included offering lower prices during non-peak seasons, extended mileage travel, no late return fees or offer a no empty tank fuel charge upon rental car return.
Browse hundreds of Economics tutors. This worked out very well as can be seen by my high score. By advertising in these key traffic areas, Universal is sure to increase brand equity and bound themselves for future success.
Universal car rental pricing simulation solution required. I could have spent a lot more time analyzing each area and looking back at past data, charting it, and basically making scientific decisions by using everything that was available to me, however usually I did not. What was difficult is to understand how to move cars and prices around in such a way that when one city had inherently higher prices on weekdays and lower on weekends and the other had higher prices on weekends and not weekdays, because I could not say allocate a maximum of X number of cars for weekends and this many for weekdays it made the decision to move cars more difficult as in some cities you could charge more on some days and less on others and same for the other city but the opposite was true so I had a bit of a hard time there, especially when what I thought was a good idea, ended up hurting me for an entire quarter, until I could move cars back to where they could make me more money.
What I found in Orlando was that although typically you made less money per rented out vehicle, utilization was always high, almost without care to the price, also in Orlando weekend prices were almost always if not always the highest.Universal Rental Car Pricing Simulation.
Pricing Strategy Group Coursework Pricing Simulation: Universal Car MBA Students | * | Date | 26 May | 1. In the Universal Car Rental game, Orlando, Miami, Tampa are all pools with multiple rental car locations.
mint-body.com~metin 5 Car Rental as a Product and Associated Decisions price because you know you‟re going to make a lot of money at the back end,” According to. Universal Car Rent Marketing Pricing Simulation - Team C5 Key takeaways: July-October Strategy November-December Weekdays % Capacity utilization.
Business consumer: High portion of market. Price Inelastic. Kept raising price. Lowered the price by $ per car for lower demand projection months. Control price increase due to lack of price.
Universal car rental pricing simulation solution required. details are "At a Florida rental car agency, students assume the role of a district manager responsible for setting prices for rental cars across three Florida cities: Miami, Orlando, and Tampa.
Pricing Simulation: Universal Rental Car V2. MENU. This simulation will help you understand the principles of pricing in a dynamic and realistic management environment.
Across 12 simulated. Simulation Overview The Universal Rental Car Pricing simulation teaches the principles of pricing and capacity management. Students analyze the economic, seasonal, and competitive forces of the rental car market and develop a pricing strategy to maximize the cumulative profit for the firm.Download