Dynamic Pricing Model

1
Dynamic Pricing Model

• Scott Marshall
• Cpsc236
• January 22 2000

2
What Is It???

• Name Your Own Price
• Submit an online bid

3
www.PriceLine.com

• One of the most popular
• Launched April 6, 1998
• Variety of things to bid on
• Quick
• Not without drawbacks

4
Drawbacks

• Caters to a TARGET audience
• Can ONLY choose dates NOT departure time
• Credit card charged prematurely
• Non-refundable
• NO airline guarantee
• What if your bid is rejected?
• No shopping

5
Advantages

• If you are willing to be flexible you can save
  
• No leg-work
• Convenience

6
When Mistakes Occur

• Confusing criteria
• NO error checking on bids
• Customer Service???
• Cancellations???
• Orlando trip

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ConclusionHow to use PriceLine-gtAccording to
BusinessWeek.com

• Be flexible when you plan your trip PriceLine
  doesnt give you any say over what time of day
  you will be flying.
• After you submit a bid you should hear back from
  PriceLine within an hour while you wait you may
  want to make a conventional reservation you can
  always buy that ticket if your bid is rejected.
• Do NOT submit unrealistic bids you are not
  allowed to a submit a second bid for the same trip