Priceline.com

Priceline.com - could wait for demand to materialize, such...

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Priceline.com 1. The customer specifies the days and destination and the amount they would be willing to spend for their tickets, instead of the customer comparing rates from airlines. 2. Priceline customers have to be flexible. They target budget-minded leisure travelers. The airlines are actually benefitting more from the process. Since the prices of the available tickets are kept secret, they may actually be paying more than the asking price. 3. Priceline built their brand effectively which enabled them to expand to other products. They almost instantly had brand awareness amongst adult consumers. They achieved “mega-brand” status within 150 days of its launch. They quickly expanded to automobiles, hotels, and home financing. Some people did not feel they could be successful with situations where the supplier was not under pressure to sell but
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Unformatted text preview: could wait for demand to materialize, such as grocery staples. Grocery items were still launched, but customers would have to shop twice once online and again at the store. 4. Expedia announced Hotel Price Matcher and Flight Price Matcher services. They only focused on travel with flights, hotels, cars, vacations, and cruises. Other competition includes Cheaptickets, Travelocity, and Preview Travel. Priceline actually filed a lawsuit against Expedia, but Expedia showed that its services were differentiated from Pricelines services. One thing Expedia does is that if a customer name a price higher than the published rate, they charge the customer the lower rate, which is something that makes them a huge competitor for Priceline....
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