In 1993, National Car Rental faced liquidation. General Motors Corporation (National's parent) took a $744 million charge against earnings related to its ownership of National Car Rental Systems. National faced liquidation, with the loss of 7,500 jobs, unless it could show a profit in the short term. National initiated a comprehensive revenue management program whose core is a suite of analytic models developed to manage capacity, pricing, and reservation. As it improved management of these functions, National dramatically increased its revenue. The initial implementation in July 1993 produced immediate results and returned National Car Rental to profitability. In July 1994, National implemented a state-of-the-art revenue management system, improving revenues by $56 million in the first year. In April 1995, General Motors sold National Car Rental Systems for an estimated $1.2 billion.
[1]
Elizabeth Louise Williamson,et al.
Comparison of optimization techniques for origin-destination seat inventory control
,
1988
.
[2]
Peter Belobaba,et al.
OR Practice - Application of a Probabilistic Decision Model to Airline Seat Inventory Control
,
1989,
Oper. Res..
[3]
Renwick E. Curry,et al.
Optimal Airline Seat Allocation with Fare Classes Nested by Origins and Destinations
,
1990,
Transp. Sci..
[4]
Samuel E. Bodily,et al.
A Taxonomy and Research Overview of Perishable-Asset Revenue Management: Yield Management, Overbooking, and Pricing
,
1992,
Oper. Res..
[5]
Barry C. Smith,et al.
Yield Management at American Airlines
,
1992
.
[6]
G. Ryzin,et al.
Optimal dynamic pricing of inventories with stochastic demand over finite horizons
,
1994
.