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Reverse Auction Sites
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Reverse Auction Sites

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Transcript

  • 1. Reverse auction sites
  • 2. Reverse travel auctions' history
    • Reverse auctions gained popularity in the late 1990s as a result of the emergence of Internet-based online auction tools
    • FreeMarkets: Pioneer of online reverse auctions
    • Other companies rushed to join the reverse auction marketspace
    • business-to-consumer (B2C) auctions were created after B2B auctions
  • 3. How they work, in general
    • buyers name their price and invite suppliers to bid for their customer
    • In the PriceLine model,
    • the company selects
    • generic categories such
    • as a weekend in Paris.
    • It then negotiates with a
    • number of suppliers who
    • would be interested in selling
    • to PriceLine's customers
    • (the buyers)
  • 4. Choose a reverse auction site - profile the types of hotels you found on the site
    • Priceline is the most famous consumer reverse auction site
    • Hotels found: from 1 to 4 stars
    • Famous hotel brands (Marriott, Accor,etc)
    • Main touristic venues
  • 5. Sites that give customers advice on using reverse auctions
    • www.Bugdettravel.com
    • www.excellent-romantic-vacations.com/
    • http://www.managingchange.com/dynamic/auctions.htm
  • 6. List the key points
    • 3 companies dominate the travel auction scene: ebay, SkyAuction & LuxuryLink
    • The most substantial discounts will generally be on ritzy vacations, which have a higher profit margin built into normal prices
    • SkyAuction and LuxuryLink are travel agents that negotiate deals directly with hotels and airlines.
    • The last half hour is when 50 percent of bids come in
    • Purchases on the spot are rarely a good deal
  • 7. Conclusion: how can a hotel best participate in a reverse auction site, if at all
    • Reverse auctions work best when:
    • buying products where there is a clear industry specification for the item and recognised quality standards.
    • the supplier and manufacturer are well known and have a proven track record.
    • the industry does not suffer periods of shortages
    • after purchase service is minimal or very unlikely
    • distance is not an inhibitor to the supply or the service of the product.
    • the required item is difficult to find.
  • 8. Links
    • http://www.budgettravel.com/bt-dyn/content/article/2006/02/08/AR2006020801519.html
    • http://www.excellent-romantic-vacations.com/travel-auction-websites.html