Reverse Travel Auctions V3

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Reverse Travel Auctions V3

  1. 1. E BUSINESS Reverse Travel Auctions
  2. 2. Reverse auctions’history <ul><li>Reverse auctions gained popularity in the late 1990s as a result of the emergence of Internet -based online auction tools. </li></ul><ul><li>FreeMarkets was the first company , launched in 1995 by former McKinsey to use the reverse auctions process. </li></ul><ul><li>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. </li></ul><ul><li>In 2005, the reverse auction concept arrived in France. </li></ul>
  3. 3. The reverse auctions process <ul><li>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. </li></ul><ul><li>Reverse auctions can effectively be used for procurement of a variety of goods and services, as well as financial products . </li></ul><ul><li>Unlike a typical auction, prices in a reverse auction decrease as the bidding process continues. </li></ul><ul><li>The objective of reverse auctions process is to stimulate the demand. </li></ul><ul><li>The target of reverse auctions is price sensitive customers . </li></ul>
  4. 4. The reverse auctions process
  5. 5. Reverse auctions’benefits
  6. 6.
  7. 7. Reverse auctions in the travel industry Case study : Priceline.com
  8. 8. Business description: Priceline.com <ul><li>Priceline is an OTA that uses the reverse auctions process as their main strategy. </li></ul><ul><li>Priceline.com enables customers to name their price. “Name your own price”. </li></ul><ul><li>In 2002, Priceline licensed its “Name Your Own Price” travel system to eBay. </li></ul><ul><li>The offer of Priceline is airline tickets, hotel rooms, car rentals, and Vacation Packages. </li></ul><ul><li>Priceline is the parent company of the European organization Booking.com . </li></ul>
  9. 9.
  10. 10. Hotels’ profile on priceline.com <ul><li>Priceline hotel participants are major national brands: what are their characteristics? </li></ul>
  11. 11. Sites giving customers advice on using reverse auctions <ul><li>www.reverseauctionsblog.com : </li></ul><ul><li>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. </li></ul><ul><li>www.reverseauctions.com : this website describes the history, the issues and opportunities about reverse auctions. </li></ul><ul><li>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. </li></ul>
  12. 12. The keys points of using the reverse auctions process.
  13. 13. Conclusion :How can a hotel best participate in a reverse auction site? <ul><li>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 </li></ul><ul><li>The hotel must choose the OTA regarding its reputation, its fee policy, its rate of customers’satisfaction and its cancellation policy. </li></ul><ul><li>It will allow the hotel to sell its inventory and gain revenues. </li></ul>
  14. 14. Webography <ul><li>www.reverseauctions.com </li></ul><ul><li>www.priceline.com </li></ul><ul><li>www.reverseauctionsblog.com </li></ul><ul><li>www.dublinetwork.com </li></ul><ul><li>www.oltiby.com </li></ul>

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