TravelMole Interview: Glenn Fogel, Priceline.com
Name-Your-Own-Price internet travel site Priceline.com is seeking to expand its presence in the UK by linking with other travel websites.
Glenn Fogel, senior vice president international and corporate development told TravelMole that he believes an affiliate programme is the best way for the company to increase its sales in the UK.
Mr Fogel said that while thousands of pounds had been spent on advertising the Priceline name when the UK operation was initially launched at the beginning of 2001 with venture capitalists General Atlantic Partners. But, he explained, today’s different trading environment and the fact that General Atlantic are no longer involved in the UK operation meant that the approach had to change.
He told TravelMole:”In 2001 there was television and radio advertising, the Priceline name was on taxi cabs in London. But the market was different than it is now.”
He added: “We have to look at what is the best way to get out there. Is it to take this route or spend a lot of money on mass media marketing?”
Mr Fogel said he was looking to work with travel websites as well as other internet sites. It could offer either a white label solution, a co-branded Name Your Own Price search or else a simple affiliate link to the Priceline site.
Customers using Priceline choose the area they want to stay, the rating of the accommodation they want and the price they are prepared to pay. Priceline then sees if anything matches their request.
Mr Fogel claimed that Priceline’s average room rate was 40% below that offered by Expedia or hotels.com. The trade-off is that consumers do not know the name or brand of the hotel they are choosing until they have accepted and paid for the booking. The reservation is also non-refundable.
According to Mr Fogel there is no reason why this sort of booking model should not prove as popular in the UK as it has in the US. He said that while he could understand why first time bookers may worry about the standard of hotel they would get, he was confident that when they had used the site once they would return. He pointed out that if the hotel was not up to scratch it would be self-defeating for Priceline as people would not return to the site and it would not receive word of mouth recommendations.
“Go to other sites find out their prices for that type of hotel in the area you want and then take a 40% haircut to it,” he said. He added that there were particularly good savings to be made on US hotels due to low demand in the States and the strength of sterling compared to the dollar.
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