Leveraging predictably irrational decisions

Date of publication: June 15, 2013

Abstract:

Last-minute travel is a market defined by low prices and discounts. At first glance, it may seem utterly ludicrous to offer an online function that tells your own customers if a competitor is offering the same product at a cheaper price. Although this idea sounds paradoxical at first, it turned out to be hugely successful: The LTUR price comparison resulted in dramatically higher conversion rates (+70%), profits, and significantly improved competitive positioning, sourcing efficiency as well as strategic product management. State-of-the-art research and in-depth understanding of the decision process can help to leverage the potential of ideas that otherwise would just have been ignored.

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