The Yield Management is a parameter which
is well known in transport prices variation: the price of services varies
greatly depending on several conditions, including occupancy rates. In general,
the most advantageous rates are available when the ticket is taken well in
advance, or on the contrary, at the last minute.
But it is not the only reason for the
rapid price increases for tickets on the Internet. On several travel websites
and airlines, the price of the same product increases with each new request.
The trick has been decrypted by Rafaële Rivals, journalist in Le Monde, and
could be illegal.
How it works?
The journalist from Le Monde explains us
that when we are looking for tickets, the operator records this research and
associates it with the IP address of the terminal we are using. It then offers
a price "p" which corresponds to the usual model of yield management.
The objective? Trigger the sale
If the customer do not buy immediately,
and tries again a little later, the operator remembered that you had expressed
an interest in this trip, and then offers a price slightly higher" p + e
", in order to encourage the immediate purchase, by letting him believe
that the number of seats decreases and the price increases. And this is
happening even if no change has occurred, even if no other client showed
interest for the trip. Then, the more you reiterate the simulation, the higher
the price will increase - always by small stages. So we can understand that the
objective here is clear: encourage the customer to book as quickly as possible.
How to check it?
The
journalist tried to check this practice. He made the same simulation of tickets
purchase from the same terminal, several times. The price rose from 100, 105 to
115 euros.
Then, he performed
the same simulation from another terminal, with a separate connection and the
price remains the same (100€).
Who uses the IP tracking?
The
journalist interviewed the SNCF and it ensured that it does not practice
the" IP tracking it is aware that it exists on some airlines, including
low cost airlines. Regarding Air France, the company assures that “the algorithms
do not use IP recognition system." Today, it has not been determined a
clear list of companies practicing IP tracking. However, according to the
journalist, it is a classic from airline companies, and some other rail
operators in Europe. Also, it is a regular practice for local airlines
companies, particularly in Asia.
Data protection problem
In
addition to the reasons mentioned in the article, the IP tracking should be
banned because it makes no economic sense. Indeed, the price is not depending anymore
on the law of supply and demand but the estimated interest of the buyer. The
consumer is deluded because he thinks it is yield management, and this makes
the detection of abuses difficult.
The advice?
To not get caught with IP tracking, you
must make ALL simulations on a terminal, and once you made your choice, use a
different terminal to complete the transaction.
Chloé Mattei & Mélissa Leverd
Key words: yield management, IP tracking, transport
prices variation, IP recognition, terminal, airline companies
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