reverse travel auctions v3
TRANSCRIPT
E BUSINESSE BUSINESS
Reverse Travel Auctions
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Reverse auctions’history Reverse auctions gained popularity in the late 1990s
as a result of the emergence of Internet-based
online auction tools.
FreeMarkets was the first company, launched in
1995 by former McKinsey to use the reverse auctions
process.
At the beginning of the new millennium, eBay created
an online auction model where buyers compete to
each other for their highest price for a particular item.
In 2005, the reverse auction concept arrived in
France.2
The reverse auctions process
An online auctions is a process where Internet buyers can set a purchase price as the basis for finding a vendor willing to sell at that price.
Reverse auctions can effectively be used for procurement of a variety of goods and services, as well as financial products.
Unlike a typical auction, prices in a reverse auction decrease as the bidding process continues.
The objective of reverse auctions process is to stimulate the demand.
The target of reverse auctions is price sensitive customers.
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The reverse auctions process
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Reverse auctions’benefits
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Reverse auctionsReverse auctions in the travel industry in the travel industry
Case study : Priceline.com
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Business description: Priceline.com
Priceline is an OTA that uses the reverse auctions
process as their main strategy.
Priceline.com enables customers to name their price.
“Name your own price”.
In 2002, Priceline licensed its “Name Your Own Price”
travel system to eBay.
The offer of Priceline is airline tickets, hotel rooms, car
rentals, and Vacation Packages.
Priceline is the parent company of the European
organization Booking.com.
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Hotels’ profile on priceline.comPriceline hotel participants are major national
brands: what are their characteristics?
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Sites giving customers advice on using reverse auctions
www.reverseauctionsblog.com : This site gives information about the benefits of
using a reverse auctions process whether its is for a company or for a buyer. It really gives details on how to use a reverse auctions process.
www.reverseauctions.com: this website describes the history, the issues and opportunities about reverse auctions.
www.oltiby.com : it is like Ebay, a website which sales products and services with a reserve auctions model. In this website the process of purchasing a product is well described and easy for the customers to understand.
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The keys points of using the reverse auctions process.
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Conclusion :How can a hotel best participate in a reverse auction site?
Hotels most particulary chain hotels can participate
in reverse auction by adding their hotel to a well
known OTA which uses the reverse auctions
process
The hotel must choose the OTA regarding its
reputation, its fee policy, its rate of
customers’satisfaction and its cancellation policy.
It will allow the hotel to sell its inventory and gain
revenues. 13
Webography
www.reverseauctions.com
www.priceline.com
www.reverseauctionsblog.com
www.dublinetwork.com
www.oltiby.com
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