Priceline Business Model

Priceline Business Model The core components of Priceline’s business model are based around their pioneered and patented reverse auction pricing model which is a unique offering within the travel market place. This innovative model allows consumers to purchase travel services at a discounted prices by trading off brand and features. Priceline uses a business model known as brokerage model where a business creates their own market by bringing buyers and sellers together.
Priceline operate as the middle man or broker bringing the two parties together in a seamless and friendly manner. Revenue is earned based on the difference between the “Name your own price” amount entered by the customer and the amount charged by the service provider such as the airline. A more traditional travel agency model is also used by them offering a list of prices the customer can choose from and in this case Priceline receives a commission/agents fee.
Is the Priceline Model a sustainable one? ?During Priceline’s early start up days they experimented with variations of its business model by offering groceries and gasoline, which initially had negative impacts on profitability. However Priceline’s management was able to adapt and focus their model so that it started producing significant returns. ?Priceline improved from a $1 billion loss to a profit of over $10 million between the years of 1999 to 2003.

Since 2003 Priceline has continued to be profitable and grow, increasing its stock price over 27 times from its lowest to slightly under $200 USD in 2010 and is now sporting a market valuation of $8. 8 billion. ? Additionally Priceline announced a ground breaking hotel price guarantee that pays customers a nominal reward if they find a lower price than the one offered by Priceline. ?As part of their expansion and growth they recently acquired the multinational car hire reservation service TravelJigsaw to provide more their value added services to their customers. Although the travel industry is saturated and has ever increasing competition, the population of the internet and those willing to buy goods and services over the web also continues to grow. Priceline Model- Changes Priceline has changed its business model since 2007 focusing more on traditional online reservation services. Customers have the flexibility to select from brand and features rather than their more restrictive and discount “Name your own price” model.
The Priceline website is now organized much like those of its competitors. Customers can still choose to bid, but this is no longer the only option. Value for money remains high, strengthened by elimination of booking fees, while service quality has improved. Priceline also continues to strive towards providing customers with a superior user-friendly service such as the launch in Jan 2009 of a The Travel Ekspert blog providing advice to consumers and also offering over 2. 5 million hotel reviews (PhoCusWright)

Order your essay today and save 20% with the discount code: ESSAYHELP

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more