October 29, 2014

Online travel booking sits rig prices by customer's history

Travel Mole - Online [travel] booking sites, according to new research, says available prices can be dependent on past browser history and 'personalization.'

A study by researchers at the Northeastern University said price discrimination, whereas price is customized to a specific user, and price steering, when the order of search results is customized are two ways that OTAs manipulate results.

The study looked at 16 e-commerce sites and found these practices were more often used by travel search websites.

Examples found included Priceline personalizing search results based on a customer's previous booking history and Expedia and Hotels.com steered some users to more expensive options.

Travelocity also personalized results specifically for mobile users.

Researchers found that Orbitz customers who registered on the site are charged an average of $12 less than first time users.

Most of these practices are not illegal and in some cases rewarded loyalty by offering lower 'member only' rates but lack of transparency means it is hard to know when customers are really getting the best deal, said study co-author Christo Wilson.

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