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by fludlight 2445 days ago
Lifetime value (LTV). It’s tricky to measure in the travel industry because users only transact once every few months or even years.
1 comments

If the assumption is that the user is looking for the cheapest option regardless of how he's been treated, this strategy makes sense.

But that leaves you at the mercy of the competition, which in an open data business (I mean, airlines are more than happy to tell you which flights they have available) implies that your product is undifferentiated. So eventually you resort to this tactics: as soon as a user gets in, do anything that's humanly possible to convert that sucker.

That's in essence what's wrong with Booking. This trickles down, unfortunately: Ryanair hides most of its costs in effectively forcing you to upgrade to Premium in order to be treated as something just a bit more than lifestock, because the assumption that travelers' main concern is price pervades the industry, even if the price they are shown isn't the price they pay in the end.