Travel Meta-Search: What’s Broken & How We Can Fix ItSam ShankCEO, DealBase.com

A Meta-Search Point of ViewWorked in comparison shopping since 1996Worked at Sidestep until December 2007Founder of DealBase.com – meta-search approach to travel deals

“But if it ain’t broke?...”Consumers love travel meta-search Solves a real consumer problem For suppliers, it’s an essential marketing channelThe strongest indicator it’s working…

…Imitation is the sincerest form of flattery

What’s WrongIt’s a zero sum game, low prices winFocus is on selling leads, not driving incremental revenueOne size fits all pricing model

When travelers see this flight search…

…here’s what they really seeBestOkayWorst

When travelers see this hotel search…

…here’s what they really seeGoodBad

Fixing It – Lessons from Comparison Shopping

Fixing It – Lessons from Comparison ShoppingSeller reviewsProduct-level custom messagingBest Value indicator*best value is lowest total price, new items, in stock with a seller rating of 4+ stars and 20+ reviews

Fixing It – Differentiate beyond priceReviewsQuality warnings a good startAircraft Rating:★★★★★14 RatingsRoute-specific custom messagingAircraft Rating: ★★★★★ 92 RatingsOnly Tues non-stopBetween SFO & LONBest ValueAircraft Rating: ★★★★★ 55 RatingsBest Value indicator

Fixing It – DealBase.comSort by Quality – low price, most savings & high customer interest

What’s WrongIt’s a zero sum game, low prices winFocus is on selling leads, not driving incremental revenueOne size fits all pricing model

Fixing It – Ancillary Revenue Relevant, interesting & affordable offerJust for you! Special Offer for this Flight from UnitedFor $49 you will receive priority standby for a full row. Based on the seats open right now, your odds of getting the row are 85%. If the row is not available, you don’t pay.Book this flight and offer now! Full Row Priority Standby $49

Fixing it – DealBase.comMerchandising the benefits of the offerSavings is transparent & compelling

What’s WrongIt’s a zero sum game, low prices winFocus is on selling leads, not driving incremental revenueOne size fits all pricing model

Fixing it – Inspiration from Google“Chicago Hotels”$3.71-$6.14“Quad Cities Hotels”$0.05-$1.92340% difference in top keyword prices

A Product’s Value is VariableHistorically sells 90% of seats. Why should Delta pay for more customers?60% sold, 5 days before departure. How can United pay for more customers?

Fixing it - How this can happenSuppliers demand variable pricingShare a percentage of margin, vs. a percentage of revenueSuppliers build systems to deliver variable pricingMeta-search engines build systems to track the dynamic pricesSuppliers commit to maintain the variable pricing rulesIncentives are aligned towards profitMeta-search functionality will “follow the money” and direct people to higher margin travel products

Fixing it – a Shared ResponsibilityDifferentiate beyond low pricesSuppliers: provide content to differentiate productsMeta-search Engines: surface this content to travelersDrive ancillary product salesSuppliers: build systems to distribute offers for ancillary productsMeta-search Engines: promote the offers to consumersProduct-level pricingSuppliers: demand variable pricing, commit to maintain pricingMeta-search Engines: build systems for product-level pricing

What’s on the LineTravelers get new choices & purchase opportunitiesTravelers spend more money and travel more frequentlyEveryone wins