Minimum rental length

A minimum rental length, or minimum LOR, is a rule that a hire starting on certain dates must last at least a set number of days. Operators use it on peak dates so short hires don't break up the fleet's calendar.

When to use one

Compare what a short hire earns with what it blocks:

Cost of a short hire = revenue lost from the longer hire it blocks − short-hire revenue

If that's positive and you expect enough long-hire demand to fill the cars, set a minimum.

Worked example

Hypothetical. Christmas week, one car, seven days.

If you're confident a 5-day hire will drop into the gap, the short hire is fine. In peak, if most of your enquiries are for the full week, you can't count on a mid-week 5-day hire turning up. A 5-day minimum protects the NZ$910.

Outside peak, a minimum just turns away bookings. Lift it as soon as demand drops.

Why it matters for a rental operator

Gaps between hires are lost car days you can't sell back. On the busiest dates, a minimum keeps cars free for the longest, most valuable hires. It also cuts turnarounds when staff are stretched.

The risk is setting it too long or leaving it on. Review it against your booking curve each week.

See it in Rate Pulse

Rate Pulse checks 3-day hires only, so it won't show you competitors' minimums directly. A brand that's missing from short-hire results on peak dates may have one. Start at Rate Pulse.