Earlier today Kayak announced the launch of a new self service tool that allows advertisers to concentrate their spend on dates when they have empty rooms in certain hotel properties. While Kayak’s initial courtship of the travel companies may have been everything they wanted to hear in terms of improved channel management – a consumer-friendly [...]
Earlier today Kayak announced the launch of a new self service tool that allows advertisers to concentrate their spend on dates when they have empty rooms in certain hotel properties.
While Kayak’s initial courtship of the travel companies may have been everything they wanted to hear in terms of improved channel management – a consumer-friendly way to aggregate and present travel inventory; travel bookings made via the company’s brand site – all this for a price equal to (or less) than the Expedia and Travelocity’s of the world. Travel companies would be foolish not to say, “Why yes Kayak, I’ll be your partner.”
However, Kayak missed the boat on the power and attraction of opaque travel players such as Priceline that offer suppliers the opportunity to unload excess inventory in a blind auction of sorts. The Priceline’s of the world allow travel suppliers to push excess inventory while maintaining their brand equity.
Hmm, brand equity, what a great concept…Imagine watching the value of your BMW’s plummet exponentially because others started selling the same model as yours for 50-75% less at the end of the year due to excess inventory.
So while Kayak hit the mark on its initial supplier pitch regarding channel management, its newest offering may have limited success, most likely pitting individual hotel managers against corporate marketing efforts. Definitely a mixed message.
Prashant Desai is Director of Product Development at Reprise Media
Sure there is a limit to the % of customers and situations that warrant a blind travel auction?
FWIW, I have never “gone blind” on travel, and I do not see it happening in the foreseeable future.
Isn’t there something to be said for the customer wanting to be in control of the shopping process?