Group 6- Priceline - Assignment PDF

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You can save up to 60% on travel costs with Priceline Express Deals. This is the same amount you can save when you Name Your Own Price and pricebreakers. When using pricebreakers you are able to get a lower cost. Three of these models have that in common, finding the lowest cost.

Since the seller is anonymous through the buying the buyer gets a price shield. This allows the buyer to choose their date, location, and price. This benefits the customer by giving them preference on what is important and the rates they need. After the customer has paid, the information that was not first shown, such as amenities, is revealed to the customer. This benefits the suppliers because there are no refunds and the supplier is guaranteed the revenue, while it may not affect the brand loyalty.

Unique properties of travel products could include location, price, dates, etc. The opaque/semi-opaque selling models work in segmenting the travel product market because customers can choose a maximum or minimum price. Through specific websites, if you were booking a flight you could filter the maximum/minimum price you would like to spend, and the dates you would like to go. From there, an airline begins segmenting by splitting first class plane tickets from regular. You buy a more expensive plane ticket, and in return have much more space. This allows the airline to sell more tickets and increase revenue. However, the airline still offers affordable options for customers, just with less benefit.

Opaque selling is not always the best option because. When customers are too “diverse”, even with excess capacity, the firm will serve only high-value customers with

full-information products, and ignore low-value customers. It can also hide attributes and consumers are not given the full details of the ticket (hotel name and specific location) until after they have purchased it....