Priceline Case Analysis

364 Words2 Pages
Recommendations Upon review of the Priceline case our group presents the following recommendations: * Consolidate services/products – Specialize * Focus on “perishable inventory” travel market; i.e., airline tickets, hotel rooms and rental cars * Eliminate non-travel related services; i.e. new car purchase, grocery, and mortgages * Enhance Business Model * Revise supplier participating agreements to ensure continued competitive advantage * Negotiate incentivized price and discount levels; principally for business travelers * Negotiate increased flexibility on price shields; e.g. open pricing up for competition among suppliers under set conditions; retain public price shielding * Negotiate limited exclusivity w/Priceline for certain discounted tickets * Maintain brand anonymity for all “name your own price” participating suppliers * Increase number of suppliers (hotels, airlines, car rental providers, etc.) * Expand service offerings * In additional to the “name your own price” service, offer a premium “name your own price” service focused on the business traveler ; offering greater travel choice and flexibility * Offer standard online access to suppliers published fares in order to hold the competition at bay * Offer price match guarantee (if customer finds a lower published price elsewhere) * Re-establish brand leadership in the travel services industry Rationale Priceline clearly overextended the “name your own price” marketing mix and diluted their brand by expanding into multiple markets. Additionally, Priceline failed to adjust to the emergence of the new internet environment and growing competition in its core airline business. As a result, Priceline took its eye off the ball and missed an opportunity to address a significant market
Open Document