Edelman Award Paper
Revenue Management Saves National Car Rental
By M.K Geraghty and Ernest Johnson
In the January/February 1997 issue of INTERFACES magazine, M.K. Geraghty and Ernest Johnson were presented as finalists of the Franz A. Edelman award for their presentation on a state-of-the-art Revenue Management System that would turn a huge money losing rental car company, National Rental Car, into a profitable business within two years.
In 1993, General Motors took a $744 million dollar charge against earnings related to its ownership of National Car Rental Systems. National was facing liquidation and a layoff of more than 7,500 people unless it could post a profit in the near term and prove that the car rental business was worth saving.
Before National began using the Revenue Management System, it faced the same issues as its competitors. The car rental industry relied heavily on corporate customers that paid fixed rates and only traveled during the week leaving......
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Approximate Word Count: 1747
Approximate Pages: 7 (260 words per double-spaced page) |