The document discusses how the growth of internet and mobile usage has led to increased price transparency. It notes that 50% of the world's population now owns a mobile phone and 58% of American adults use mobile devices daily for non-voice activities. As a result, companies face pressure to either race to lower prices or adopt transparent pricing strategies that clearly communicate the full value to customers. The evidence presented finds that programs with transparent pricing generate higher prices, longer customer stays, and more repeat business compared to those that obscure true costs.

1. The High Cost of Ignoring Value Price Transparency in a Connected Age

2. Agenda Internet usage drives price transparency The impact of the mobile Internet Responses Results

3. The Internet enables price transparency

4. And it integrates marketing and distribution channels

5. Oh. And it’s growing Source: Compete.com (http://siteanalytics.compete.com/expedia.com+kayak.com?metric=uv)

6. Mobile? Even more so 4Info Slifter.com

7. Growth of mobile Internet 3.3 billion mobile phones worldwide 50% market penetration worldwide - in 26 years 50% of Americans over 65 have mobile 58% of all American adults use mobile for non-voice, data application every day

8. Possible responses Race to zero Transparent value

9. Race to Zero RyanAir “$20” flight LON-BCN Source: Wired Magazine

10. Requirements Rational pricing per add-on Skewed pricing to maximize revenue $17 per minute phone service $62 Continental breakfast Unhappy customers Risk tolerance

11. Transparent value programs Rate parity/Best Rate Guarantee Breakfast included Guaranteed dollar program One More Night Leading Suites Amazon Free Shipping

12. Successes Transparent value programs generate 15% higher prices Customers participating in transparent value programs stay 17% longer Revenue per reservation 35% higher 34% incremental business

13. Conclusion The future is already here, it’s just not evenly distributed The internet creates price transparency Marketers need to ensure their value is equally transparent

14. Thank you