Priceline approach is truly unique, and, back in 1998, it has indeed turned marketing buyer system upside down. Jay Walker was the innovator of "name-your-price" concept, which can be interpreted as allowing people to set up prices for products or services. The model was mainly based on shifting power into the hands of consumers and away from the companies; and, according to impressive revenues of 482 million during the first year; it [concept] really worked. The idea of the venture lay in providing solutions to various needs of customers across the globe through application of new Internet technologies. It was also intended at finding new ways of doing business..
There has been substantial improvement in bookings comparing to last year and impressive growth in Europe, resulting in over 60% gross profits. In view of that, first question comes to mind: why the company has not been as successful as first imagined.
At the beginning many people, mainly money saving driven segment, were actually attracted to the pricing innovation scheme, as for the first time they felt that they were able to set their price and get offers which, according to the