Reverse Auction

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Reverse Auction

  1. 1. Reverse auction<br />Matthieu LABOYE<br />
  2. 2. Reverse Auction History<br />Concept invented in 1995 by Glen Meakem<br />Freemarket was the first reverse auction website<br />Development in the late 90’s thanks to the dot-com boom era<br />1998: creation of priceline.com, the first reverse auction focused on hospitality and travel<br />
  3. 3. General Principles<br />In foreward auction there is one seller, many buyers and the buyer with the highest bid gets the product<br />In reverse auction there are many seller and one buyer who buys at the best (lowest price)<br />
  4. 4. General Principles: two main types of reverse auction<br />Attention: may be risky and expensive if there is a fee to make a bid<br />The sellers do they best to make the best offer to a specific demand<br />i.e.: mybestfarefinding.com<br />The lowest unique bid<br />Sellers make the lowest bid to match buyers expectations<br />
  5. 5. Types of hotels on priceline.com “name your own price”<br />All categories<br />1 to 4 star hotels<br />Many types:<br />Independents<br />Chains<br />International groups<br />
  6. 6. Customer advice websites<br />reverseauction.com<br />Reverse-auction.com<br />Encheresinversees.eu<br />
  7. 7. Can a hotel participate reverse auction?<br />Can be a useful tool to sell distressed inventory<br />But hotelier should chose carefully the auction site<br />There is a risk of for the image of the hotel because reverse auction users are mostly price focused and do not really care about the values or specificities of the hotel/brand<br />
  8. 8. Thank you for your attention<br />

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