Can you please introduce yourself?
My name is Camille Léger and I am responsible for managing all revenue management systems and RM data for Europcar Mobility Group. My role covers all the countries and, with my team, our main mission is to support these countries in their day-to-day profitability gains. We provide them with revenue management software and solutions, data analysis platforms and other decision-making tools they need to focus on their strategy.
What were Europcar Mobility Group's main challenges in terms of Revenue Management / Revenue Integrity?
We have identified several challenges within the Group’s revenue management teams, which we are tackling one by one. The first challenge was to have a robust revenue management tool that was more advanced than the one we had until now. We are currently in the process of transitioning to a new Revenue Management System (RMS), which is our main objective for the year.
In our drive to perfect our work around revenue management, we wanted to ensure that we weren’t losing revenue in an overly simplistic way and that we were paying the necessary attention to the fundamental aspects of the procedures. In adopting a more mature and advanced approach to revenue management, it was essential for us that the foundations of our data and revenue integrity were firmly established in parallel. And we found that this was not always the case.
This initial impression prompted us to delve deeper into the issue by launching a Revenue Integrity initiative. And we’re now realising just how right that decision was!
Before that, the concept of Revenue Integrity didn’t exist at all at Europcar. As Pascal (CEO of N&C) often reminds us, you need to have a certain maturity in revenue management to effectively implement Revenue Integrity. That’s the approach we’re taking to get a 360-degree view.
This means that, not only does my team guarantee that the data we import into our tools is correct, but also that these tools optimise the right revenue base. So we can’t afford to have any leaks or shortfalls in this virtuous circle. That’s why we decided to embark on this high value-added approach in terms of EBITDA.
How did you hear about N&C?
As part of our drive to improve our tools, we had already worked with N&C in 2023 to optimise our pricing tool. An initial assignment was carried out by N&C for the Europcar Mobility Group last year.
During our research into Revenue Integrity, N&C proposed the most « business-like » approach, adapted to the tourism industry. That’s why we chose N&C, because their approach is more geared towards our market sector, and they are familiar with our specific revenue management needs in terms of managing a vehicle fleet.
What specific objectives did you set for this assignment? What were your expectations?
Indeed, we set very precise financial and non-financial objectives. The first objective was to map out the anomalies to be studied: what are these anomalies, how many are there, where do they come from? Then to categorise and prioritise them.
In terms of financial objectives, each anomaly was assessed by focusing on the potential revenue to be recovered and the resulting margin. It is important to note that in the context of Revenue Integrity, each euro of revenue recovered essentially translates into pure margin. As a result, we have set some very concrete targets!
At the same time, we also have non-financial objectives, particularly in the areas of Change Management and Operational Excellence. Thanks to the work of Margot (consultant at N&C), we’ve been able to create a good sense of competition within our community of Revenue Managers. Every month we hold a performance review on the Revenue Integrity topics of the day, as well as taking the time to share best practice and answer questions from our countries.
How did the integration of our consultant into your teams go?
The integration went very smoothly, thanks in particular to Margot’s professionalism and adaptability.
For our part, although we had the necessary ambition and resources, we didn’t have the right methodology for tackling such a subject, given that we had never undertaken this type of approach before. Working with N&C saved us an enormous amount of time, as the methodology was already in place.
Having someone entirely dedicated to this task, combined with a methodology like that proposed by N&C, made integration much easier, as we were guided every step of the way.
What results or improvements have you seen so far as a result of this mission?
We are starting to see tangible results. This identification and detection phase is long and essential. Margot has been with us for five months now, and we started seeing tangible financial results about a month ago. The impact is remarkable because of the growing enthusiasm of the contributors and the better understanding of the importance of this approach by the management stakeholders.
That’s where Revenue Integrity starts: leaks often occur because of non-compliance with pricing conditions due to a lack or ignorance of procedures, not necessarily fraud. In reality, we carry out an in-depth examination of our internal practices and procedures. This requires a certain organisational maturity, because acknowledging our failings and admitting that we are losing money because of our own actions is not an easy process.
What were the main obstacles or difficulties encountered in carrying out this assignment?
The first challenge we faced was the accessibility and processing of the data, as it is essential to have tangible evidence to support our analyses. However, the data required for this analysis was not available in the required format, which meant that a significant amount of data reprocessing was required.
The second major challenge was to get the teams interested in the subject. Whether at the level of the operational teams in the various countries or at the level of the central teams, the concept of Revenue Integrity was not always known. Before we could take any concrete action, we first had to present and explain what was involved, what the responsibilities were, what the limits were, and above all to arouse interest in the subject.
What advice would you give to other companies considering setting up a Revenue Integrity mission?
Don’t think everything’s running smoothly! Before starting the mission, we all had preconceived ideas about where the revenue leaks should be. We were thinking mainly about fraud. However, once the interviews had been conducted and the data analysed, we realised that this assumption was not the reality. Of course, there were a few cases, but they were minimal.
My main advice would be not to rely on preconceived ideas. It’s essential to rely on tangible data to make informed decisions. You also need to ensure that you have access to all the necessary data, because without it, it’s impossible to carry out a successful Revenue Integrity initiative. Finally, the person in charge of Revenue Integrity must have a very strong affinity for attention to detail, for interdepartmental investigation, and a good pedagogical approach towards the various players in the company.
I would recommend the N&C team 100%, mainly because of their in-depth expertise in our industry. Their knowledge of revenue management in the services and tourism sector is truly impressive. It’s a major asset!
Keywords: Europcar Mobility Group, Revenue Management, Revenue Integrity, N&C, optimisation, financial performance, revenue management, expertise, tourism, service sector, strategy, profitability, methodology
