Reverse Auction Site

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Reverse Auction Site

  1. 1. REVERSE AUCTION SITES<br />
  2. 2. 1. Travel auctions&apos; history<br />Reverse Auctions <br />Following on from the success of normal auction web sites, it is not<br />surprising that attention soon turned to reverse auctions where<br />buyers name their price and invite suppliers to bid for their customer. <br />Travel Most Successful <br />The travel category has been the most successful reverse auction<br />items, as it is for normal internet sites like LastMinute.com. The<br />product is a commodity, uses well known brands (airlines or major<br />holiday companies), is of high value with the potential for significant<br />savings, it is easy to deliver the goods (the tickets), the item is<br />perishable and there is over supply.<br />
  3. 3. 2. How do they work?<br />A company selects generic categories such as a stay. It then negotiates with a number of suppliers who would be interested in selling to customers at a very low price. <br />To give supplier flexibility, the company usually has restrictions on buyers or the product. For example, with travel tickets it does not allow users to use frequent flyer programes, select a preferred airline, or receive refunds. <br />Then, customers select their criteria for what they want (travel, hotel, etc) and companies check if the price proposed corresponds to the products they offer. <br />
  4. 4. 3. Priceline.com - types of hotels you found on the site<br />Priceline proposes a large range of hotels, from the * to the ***** hotel.<br />Hotelscanalsobeselectedaccording to their brand or name<br />Pricelineboth proposes famoushotels brands and lessknownhotels brands.<br />
  5. 5. 4. Sites that give customers advice on using reverse auctions<br />DynamicPricingexplainscustomerswhatis a reverse auction and how do reverse auction sites work.<br />(http://www.managingchange.com/dynamic/auctions.htm)<br />Epiqexplainswhat are the interests for bothbuyers and sellers to use reverse auction<br />(http://www.epiqtech.com/reverse_auctions.htm)<br />
  6. 6. 5. List the key points<br />Customers createonly a projectdescription<br />Buyers have to compare the bid and what they include<br />Buyers can communicate with bidders so that they can refine their bids or offer clarifications<br />Price may be an important factor in the decision but other elements, such as added services, must also be taken into consideration<br />Buyers need to be cautious and read the proverbial fine print involved in the bids<br />
  7. 7. 6. Conclusion<br />If a hotel wants to best participate in a reverse auction, it has to adapt its services to customers’ expectations.<br />It also has to negotiate lower prices as possible with suppliers.<br />It has to keep in mind that it is better to sell a service for a low price than to not sell it at all.<br />All hotels have equal access to buyer’s invitation to tender.<br />
  8. 8. THE END<br />Thankyou for your attention<br />

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