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Reverse Auctions

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Reverse Auctions

  1. 1. Reverse Auctions
  2. 2. Reverse Auction History <ul><li>The “Reverse auction” is born in the 90s, in the USA. It’s emanating from classical Internet-based online auction tools (Ex: Ebay) </li></ul><ul><li>The first online reverse auctions site on the web was FreeMarket (Creating in 1995). It’s actually a propriety of Ariba’s Group. </li></ul><ul><li>The biggest auctions site, Ebay enter in the race in 2000 in creating a new category where people compete to each other for a determinating price. </li></ul>
  3. 3. How a Reverse Auction works <ul><li>There are two main types of “reverse auction” </li></ul><ul><ul><li>One where the sellers bid down to compete for your business </li></ul></ul><ul><ul><li>One where buyers compete against each other, with the winner being the person with the lowest unique bid. </li></ul></ul>
  4. 4. The Example of <ul><li>On the PriceLine website, a large range of hotels are available. From the 1 star to 4 star and resorts hotels. </li></ul><ul><li>The website ask you few questions in order to respond to your needs. it give the impression of a personnalized product, perfectlyin the actual trend of the hospitality industry. </li></ul><ul><li>Really diversifierd product, different style, trend and way to travel. </li></ul><ul><li>Could offers both expensive and cheap hotels. Depends on what you have asked. It’s not only focusing on cheaps hotels. </li></ul>
  5. 5. Where finding advice for ReverseAuctions <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  6. 6. How can a hotel best participate in a reverse auction site <ul><li>In choosing a relevant reverse auctions website which corresponds to its criteria (quality, target...) </li></ul><ul><li>In being perfectely aware about how reverses auctions work. </li></ul><ul><li>In being well represented, explained in order to fit with customer’s needs. </li></ul><ul><li>In providing good quality service whatever was the bid ot the buyers. </li></ul><ul><li>In avoiding as much as possible complains emanating from customers. </li></ul><ul><li>In realising a dayly follow-up of the market price, the demands and many survey of competitors. </li></ul>