Better Than The Priceline Negotiator: A Reverse Auction Model for Travel
by David C. Wyld Southeastern Louisiana University on 13/06/10 at 2:25 pm
Empty airline seats, vacant hotel rooms, idle rental cars, and vacant cabins on cruise ships. All are revenue opportunities that can become bargain opportunities for travelers – if the the price is right. Today, reverse auctions are once again in the spotlight to help solve some of the travel industries’ woes.
With travel – business and leisure – still slumping, here’s an innovative idea from the East. Zuji Singapore (http://www.zuji.com.sg/) is an online travel agency that has a unique, reverse auction based promotion for hotel and airfare deals for individuals follow them through social media.
The details are in this story below, from Aviation Record:
“Zuji Singapore, an OTA, frequently uses Facebook and Twitter to disseminate information and to offer promotions and contests as a way to maintain members’ engagement. Recently, Zuji came up with an ingenious reverse auction promotion. Every Monday to Friday, from 12 noon onwards, ZUJI puts up airfares and hotels for reverse auction.
Prices fall one to five cents per second. Bidders can watch real time, the airfares, hotels and holidays prices drop by the second. When they feel that the price is right, they bid for the ticket. The excitement comes in anticipation of a competing bidder snagging the bid before they do.”
Source: http://www.aviationrecord.com/Cargo/tabid/68/articleType/ArticleView/articleId/2661/Social-media–the-next-big-thing-in-air-travel.aspx
This is like a more 2010, social media-infused version of the early Priceline model. With the power of instant notifications and the allure of real-time bidding (and watching the price of your vacation drop every few second before striking with your mouse in an engaging, audience-building and eyeball-holding idea)! And for travelers in Singapore and beyond, if this idea spreads, reverse auctions will do more for bringing down the cost of travel (and filling empty, non-revenue producing airline seats, rental cars, and hotel rooms) for service providers. For all involved, this is better than even having William Shatner on your side!
Here at the Reverse Auction Research Center, we’ll monitor the situation and see if this model is replicated elsewhere. Stay tuned…
About the Author:
David C. Wyld (dwyld.kwu@gmail.com) is the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/). He currently serves as the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a noted expert on reverse auctions and e-procurement topics, being widely published on the topic and a recognized expert/consultant in the area. He has been named among the Rising Stars in Federal Information Technology by Federal Computer Week.
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