4Hoteliers
SEARCH
SHARE THIS PAGE
NEWSLETTERS
CONTACT US
SUBMIT CONTENT
ADVERTISING
Opaque Pricing.
By Patrick Landman - Xotels
Wednesday, 2nd June 2010
 
We hear a lot of talk about Opaque Pricing and Opaque Travel Websites, but what is it really? It is in short a non-transparent value offer.

What??? This needs to be explained in a bit more detail, right?

A non-transparent value offer, or pricing opacity, basically means that you can't see the brand of the product type you are buying. It allows hotels to offer discounts, varying with great range from their public prices, without affecting their price positioning.

Wikipedia defines Opaque Inventory as follows: a term used to describe the market of selling unsold travel inventory at a discounted price (click here for more).

It is called ‘opaque' because the supplier, in this case the hotel, remains hidden until after the reservations (purchase) is complete.

It allows hotels to reach more prices conscious consumers apart from their direct target markets. This type of hotel guest is less concerned with the specifics of the hotels facilities and services. Instead he is driven mainly by price.

The best known Opaque Travel Websites are Priceline and Hotwire:

I love Robert Wagner by the way. Best co-branding and marketing campaigns ever...

They do not show the name of the hotel to the client until the reservation is confirmed and payment is taken.

Priceline is a bidding website where the consumer names his price and the website matches anonymous hotel offers. Hotwire however works with a fixed price for a hotel. It is a travel search site where the consumer can compare hotel location, facilities, services and star rating; just the hotel name is hidden.

This segment is an important one and offers a substantial amount of demand to help fill your unsold rooms. Potential of such importance that many online travel agency websites have since introduced their own variant of Opaque Pricing;

  • Travelocity / Lastminute - Top Secret Hotels
  • Getaroom.com - Unpublished Rates
  • Booking - Hidden Hotel
  • GTAHotels.com - Mystery Hotel
  • Hotel.de - Hotel Roulette
  • HotelsCombined.com - Hotel Roulette
  • TravBuddy.com - Hotel Roulette
  • Easyclicktravel.com - Off The Record
  • HotelDirect.co.uk - Hidden Gem' Hotels
  • BookIt.com - Mystery Hotel
  • SuperBreak.com - Mystery Hotels
  • Wotif.com - Wot Hotel?
There are even some communities or info board websites with tips and discussions by consumers on how to get the best deals on these opaque hotel websites;

  • biddingfortravel.yuku.com
  • betterbidding.com
  • bidontravel.com
For more information on how to implement yield strategies in your hotel, click here: www.xotels.com/en/revenue-management, and subscribe to receive our tips and ideas.

Cheers,

Patrick - www.Xotels.com
Global Brand Awareness & Marketing Tools at 4Hoteliers.com ...[Click for More]
 Latest News  (Click title to read article)




 Latest Articles  (Click title to read)




 Most Read Articles  (Click title to read)




~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2024 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy