Priceline's core business model includes its reverse auction pricing system, which allows users to find discounted travel items by placing bids. It also acts as a middleman by providing price quotes from major hotels, airlines, and rental car companies for tickets, hotel rooms, and car rentals. Since turning a profit in 2003, Priceline has succeeded through its reverse auction model and expansion into Europe and Asia to protect itself from volatility in the US market.

2. Q1. Core components of priceline.Com'sbusiness model? Technology: Technology refers to both infrastructure and operational technologies such as Data Centers, High-Speed data links, workstations and E-Commerce systems development. Reverse auction pricing system: allows its users the ability to find discount travel related items by placing bidsPurchasing: To support its purchasing activities through acquisitions, Priceline bought Amsterdam-based Bookings B.V. in July 2005, following its purchase of UK-based Active Hotels the year before

3. Q 1 (contd..)Tickets, hotel room reservations, and car rentals: The company is not a direct supplier of these services; it functions more as a middleman, providing price quotes from various major hotel chains, airlines, and rental car companies. Human Resources: With a sizeable work force it is imperitive to manage the asset of human resources to ensure continued growth and sustainability. Legal:Priceline operates in multiple economies. Each economy has its own jurisdiction

4. Q2. Priceline will ultimately succeed or fail? Why? Earlier loss of $ 1 BillionSince its turnaround in 2003 it has been able to reach and maintain sustained profitability Reverse auction model which Priceline uses to link the sellers with buyers is what has made it profitablePriceline’s expansion in to Europe and Asia would protect the business from volatility on its home (US) market.

5. Q2.(Cont..)If the major market space Priceline operates is not negatively affected by Global financial, political and security issues outside control of the Company, our group believe Priceline will succeed in the long term.

6. Q3. How has Priceline impacted the travel services industry? Increased competition and low cost of air travel has opened up new markets for both the airline industry and consumers. Birth of ‘no-frills’ air travel concept, online ticket auctions, self serve reservations and reverse auctions (pioneered by Priceline Inc) Consumers are provided with powerful Web tools to select their own travel schedules, prices and service levels.more flexibility in arranging for the sales of its services.affordable vacations.

7. Q4. Change of Business ModelEmphasis has been focused on full service offering in the USA, growth through acquisitions in Europe and Asia while maintaining ‘lean’ operating costs including human resources. The site's travel bookings increased of 101% from the previous year to $319.1 million. (Farrell, 2007) In Asia, Priceline acquired Bangkok- and Singapore-based Agoda Company, an online travel company specializing in hotel discount bookings throughout Asia

8. Q4. Contd..In the Asia Pacific region, Agoda offers hotel properties.In addition, Agoda offers hotels in Europe, the Americas, the Middle East and Africa. Agoda's services are offered in 12 languages Agoda maintains a broad suite of content features, including customer hotel reviews, travel tips, journals and other user-generated content

9. Q4. Contd… - CompetitorsPriceline’s strongest competitors are Expedia and Orbitz Worldwide, including Pricelines these three companies make the top three publically traded online travel agencies. PROFITABILITY: As per Forbes.com, Priceline.com reported earnings of $33.3 million or 73 cents per share in 2008 compared with $32.9 million or 68 cents per share, in the year-prior period

10. Thanks to Everyone for being Attentive & Patient..!!