DayRunner

Glossary

Ancillary revenue

Ancillary revenue is income from extras sold with a hire, like excess cover and child seats. How to measure it per hire day, with a worked example.

Ancillary revenue is the income from extras sold on top of the car itself: excess reduction, additional drivers, child seats, GPS, fuel options, one-way fees, and so on. In car hire it can be a big part of the margin on each hire.

Formula

Ancillary revenue per rental day = ancillary revenue ÷ rental days

Attach rate = hires with the extra ÷ all hires

Track both by extra. A falling attach rate on excess cover is often the first sign of a counter or website problem.

Worked example

Hypothetical. Say you did 300 hires and 1,200 rental days in a month.

ExtraHires taking itPriceRevenue
Excess reduction165 (55%)NZ$30/day, avg 4 daysNZ$19,800
Child seat30 (10%)NZ$50/hireNZ$1,500
Additional driver60 (20%)NZ$5/day, avg 4 daysNZ$1,200

Total NZ$22,500, or NZ$18.75 per rental day. If your time-and-km revenue per day is NZ$110, extras add 17%.

Lift the excess attach rate from 55% to 65% and you gain 30 × NZ$120 = NZ$3,600 a month with no rate change.

Why it matters for a rental operator

Extras let you price the base car competitively in a price-sorted list and still make the margin. They're also where complaints come from when the counter pushes hard. Watch value-for-money scores alongside ancillary revenue.

See it in Rate Pulse

Rate Pulse shows advertised car prices only, not extras. The brand ranking's value-for-money sub-score hints at which brands' customers feel stung at the counter. Start at Rate Pulse.

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