Tabellab
Industry Finance Intermediate

Car Rental Economics: Utilisation, Rate per Day, Fleet Sizing & Depreciation

Measure utilisation, ADR and RevPAC, size the fleet for the season, cost depreciation and every rental day, price by lead time and occupancy, cost one-way repositioning and pick the hold period for an annual P&L: 8 graded labs on a fictional rental company.

8 lessons 8 labs 1.8 h Certificate

The first lesson is free — no account needed.

About this course

A car rental economics course that runs the fleet of one fictional rental company in a spreadsheet, for rental and fleet managers, revenue managers, mobility and travel analysts, investors and business students. You turn fleet size and out-of-service days into available car-days and utilization by class, calculate the average daily rate and the revenue per available car-day, size the fleet for a seasonal demand forecast at a target utilization and chart the season, spread depreciation over the hold period and per rental day, split monthly cost into fixed and variable parts for the cost per rental day and the break-even days, price quotes by lead time and occupancy with simple overbooking, cost one-way repositioning against one-way fees, and pick the cheapest hold period before building an annual fleet P&L. Fictional company, illustrative figures, with no affiliation with any rental brand or vehicle maker. The first lab is free.

Lessons

  1. Fleet Utilisation: Rental Days ÷ Available Car-daysLab13 minFree
  2. Average Daily Rate and Revenue per Available Car-day (RevPAC)Lab13 min Pro
  3. Seasonal Demand and the Fleet Size You NeedLab14 min Pro
  4. Depreciation per Month and per Rental DayLab13 min Pro
  5. Cost per Rental Day: Fixed, Variable and the MarginLab14 min Pro
  6. Dynamic Pricing by Lead Time and Occupancy, and Simple OverbookingLab14 min Pro
  7. One-way Rentals and the Cost of RepositioningLab14 min Pro
  8. Fleet Hold-period Decision and the Annual P&LLab15 min Pro