Car rental is one of the most price-comparable industries. Almost all people who consider renting a car compare the prices of different car rental companies online before making a purchase decision. From a peer-to-peer rental perspective, this is an excellent thing, because when renters want value for money, often the best value for money can be found in cars rented through GoMore.
However, most peer-to-peer car rental platforms have not developed a highly automated model whereby car owners who rent their car on the service can rely on the car price to remain competitive in relation to the overall car rental market after setting the daily price. This reduces the number of rental requests received by car owners through the service, which in turn reduces the earning potential of the owners - not to mention the amount of work for owners to update pricing!
GoMore offers a solution to this problem that makes life easier for car owners and allows for higher rental income. In what follows, we’ll take a closer look at what technology GoMore uses in pricing, and how this aims to ensure consistently competitive prices from the perspective of both our renter and caravan members.
Setting the day rate
Each car owner who rents out their car through GoMore decides for themselves how to set the daily rate. The car owner sets the price during the car profile creation phase by dragging a smiling (or grimacing) tomato icon to the left (lower price) or right (higher price) on the pricing scale. The look of the tomato icon and the recommended text based on the price below give the owner information on how the price he sets relates to the vast car rental market. This recommendation is based on the very comprehensive pricing data that GoMore collects from the Internet, then automatically comparing it to the information provided by the car owner (including age, make, model, size, location, accessories, etc.).
Ultimately, however, the car owner himself decides on the daily price, which he can also adjust at any time after the car announcement is published in the car's pricing settings. In addition, the car owner can decide on the minimum (1h-3 days) and maximum rental times (1 day-90 days) for his car if he wants to receive, for example, only weekend bookings.
In order to provide car owners with adequate compensation for shorter bookings, renters will always pay at least 40% of the daily rate set by the owner, even if the car is only rented for an hour. Each starting hour increases the price in steps up to the tenth rental hour, after which the rental will be charged the full Daily Price. For example, 4h rental = 60%, 6h rental = 73%, 8h rental = 87%, 10-24h rental = 100% of the daily price.
At the stage of creating a car advertisement, the owner is given information on how the total price of the car rental will be formed for the renter. The easiest way to find this information is to press the question mark icon (pictured above in the upper right corner) when setting your car's daily rate. In addition, owners can view the factors influencing pricing at any time in the pricing settings for their car listing, which also includes discounts on durations.
Duration discounts are an integral part of car rental pricing, as virtually all players in the industry reduce the daily price of cars in relation to the duration of the rental. Often, one- to two-day rentals are relatively more expensive at car rentals than, for example, full-weekend or week-long rentals. In other words, the longer it takes to rent a car, the lower the average daily price of the car will be. For a month-long rental, the daily price of a car in the most affordable offers on the entire car rental market could drop as low as € 10, and such "mini-leasing" offers have grown significantly in recent times.
For the reasons mentioned above, GoMore offers its car owners an automated way to stay competitive even for longer rentals, so the owner does not have to constantly adjust the price themselves. Without duration discounts, owners renting their cars at GoMore would receive significantly fewer rental requests - meaning less rental income. This in turn is due to the fact that in the absence of permanent discounts, potential renters would rent their cars, especially for longer rentals, from car rental companies that offer permanent discounts. It is also noteworthy that at GoMore, the car owner always makes the decision on the adequacy of the rental offered, either accepting or rejecting the offer.
An indicative calculation formula for permanent discounts is shown in the figure to the right below. The same picture can also be found on each GoMore car owner's own car profile under “Pricing -> Duration Discounts -> How is this calculated?”.
The duration discount is calculated based on the total price due to the total duration of the lease, including the effects of dynamic pricing. The GoMore service fee charged separately to the renter is not included in the calculation of the permanent discount.
For rentals of more than 28 days, the last three days are discounted 100%. This way, car pricing also automatically ensures one month of uninterrupted rentals - and you get more rental requests!
Please note that the duration discounts listed in the table above are indicative and may vary slightly in one direction or another depending on the competitive situation. GoMore always actively strives to ensure that car owners receive as many suitable rental reservations as possible at all times. This in turn requires competitive prices in the general car rental market. Please note that the calculation formula is indicative, and for rentals lasting for example 4-6 days, each has its own discount percentage, as the duration discount varies for each day.
Dynamic pricing means that the price of the car is automatically adjusted to meet daily or seasonal demand. This way, in addition to permanent discounts, we can make sure that car prices keep pace with changes in supply and demand - and you always get the best possible price for your car.
The price changes depending on the season and the day of the week, so renting a car is more expensive when more people need a car, and a little cheaper on days or seasons when demand is less high. For example, Christmas week, ski holidays, Easter, and summer vacation months are the busiest in terms of car rental demand, with prices also rising due to dynamic pricing.
Dynamic pricing allows us to provide owners with rental requests even during quieter times when demand is lower and higher earnings at a time when many people need a car. Car owners can turn off dynamic pricing or edit dynamic pricing percentage increases / decreases independently at any time in their car's pricing settings (see image above). Learn more about dynamic pricing here.
GoMore provides both its car rental and rental members with a first-class platform that makes sharing cars as safe, easy and affordable as possible. To make all this possible, we have to charge small service fees for car rentals from both owners and renters.
However, we promise to provide plenty of coverage for service fees, as these will enable us to offer our members e.g. comprehensive insurance for every private car rental (at no extra charge), 24/7 roadside service rentals, operational and constantly evolving websites and Apple + Android apps, pre-filled leases directly to the app, our customer service team, and secure community and payment services with our partners.
In addition to all this, GoMore constantly invests large sums in marketing (including TV, streaming, outdoor advertising, paid online + some advertising, and monthly discount codes) to provide our car rental members with plenty of rental requests (and thus earnings) and quality rented cars for our renters.
Our service fees are 25% for private car owners and 15% for business owners of the total daily rental price (including possible dynamic pricing effects and duration discounts) and any additional mileage and accessory earnings.
In addition to the daily price set by the car owner, the generation of earnings is also affected by the discounts described above, in addition to which the owner can earn extra from any additional earnings consisting of additional kilometers and accessories.
If dynamic pricing has been turned on, this will also affect the owner’s earnings. In this case, the owner receives higher earnings from high-season bookings because the total price also rises when demand is high, and if demand is lower, the total price that affects earnings is also lower.
The service charge paid by renters is € 4,50 per rental day + 15% of the total price of the booking (including the effect of any dynamic pricing) before any other discounts (such as discount codes or permanent discounts). The renters service fee is not included in the car owner's earnings share.
If it were a Keyless rental, a € 2,20 per day Keyless service fee would be added to the above-mentioned price example, with the help of which we maintain e.g. 24/7 our Keyless emergency telephone exchange. In addition, GoMore's 5% service charge applies for additional kilometers.
GoMore presents price details to both car owners and renters at all stages of the rental booking. In addition, car owners can view rental-specific price breakdowns in their own profile under “Earnings-Balance-Rental'' and renters under “Rentals-Finished Rentals-Rental Information”. In addition, car owners see their share of earnings directly with each rental request (SMS, push, and / or email, depending on the owner’s notification settings).
At the end of the rental, both the renter and the car owner will still receive a receipt for the rental in their emails, where a price breakdown can be found.