We recently changed the name of our Dynamic Pricing feature to “Automatic Pricing”, so we figured it’s a great time to give owners a refresher course on the daily pricing options, and how each pricing option works.
So what are your pricing options when you list a car on Turo?
Manual Pricing lets you have full control over your pricing. You set your daily price, customize prices on your calendar, and grant whatever discount you see fit for longer duration rentals (weekly, monthly). It’s handy to poke around Turo and other car rental sites to see what other, similar cars go for and to price your car competitively. Similarly, if there’s a festival in your neighborhood or a long weekend coming up, kick your prices up a notch to benefit from increased demand.
To use Manual Pricing, simply switch off “Automatic Pricing”.
Automatic Pricing, formerly known as Dynamic Pricing, lets you set it and forget it by automatically adjusting your daily prices to match demand in your area. It uses a statistical model that incorporates historical and current data to predict an optimal price for your particular car. It accounts for:
- Seasonality (weekends, holidays, high seasons, etc.)
- Geography (city- or region-specific usage patterns)
- Car attributes (make, model, age, and value)
- Listing attributes (whether you offer delivery or Book Instantly, your star rating, your historical price, past transactions, etc.)
- The competitive landscape (how your car measures up to similar cars in the Turo marketplace and at traditional rental agencies)
It’s important to note that Automatic Pricing does not consider trim or sports packages into the daily price.
With Automatic Pricing, you set a minimum daily price that will act as the pricing floor for your car. Since your prices will dynamically fluctuate based on regional demand and trip length, setting a conservative minimum daily price will ensure your car stays competitive, even during low periods when people don’t tend to travel much.
It’s also important to note that for longer duration rentals, your daily price may dip below your minimum daily price because of the discounting. Discounting encourages travelers to rent your car for longer periods of time, so it will end up paying more in the end. The fixed discounts are 15% off for weekly car rentals (10% for van rentals), and 25% off for monthly car rentals (20% for vans) when you have Automatic Pricing turned on.