Online Low-price Guarantees - Dollar.com (A)

Dollar Thrifty Automotive Group is an automobile rental service and has just launched its latest marketing campaign. The campaign is designed to entice customers to book car rental reservations on their website versus booking on more expensive online channels. The campaign hinges on a low price guarantee: book on Dollar's website, if rates go down Dollar will rebate you. A cost out for the low price guarantee can be determined using both historical data and potential price models, and a breakeven analysis can be performed to determine how much reservations traffic must move to Dollar.com to justify the campaign.