Name your Price Airline

State your price airline

Simply register and bid on the flight of your choice. Bidding on rental cars and airline tickets is easy. Here is the deal with Priceline When you' re like 43 per cent of Americans grown-ups, you've listened to William Shatner on the air who urges you on "State your price" for airfare, hotels - even a new vehicle - and Priceeline will compare your low, low price with a willing sell.

According to the brochure of the German Stock Exchange, 93 per cent of the offers for airline seats cannot be reached by Priceeline.

Evil price line in Thursday?s Wall Street Journal. This does not augur well for a business that wants to go to the stock market in less than two wards. And to put it in the right light, more than 95 per cent of eBay bidding remains unanswered. Price line is not a prime ticketing resource, it is a way to try to exceed the price of your agency.

You' ll find out in an hours time whether Priceline can give you a basic tariff. Otherwise, choose your agency. Priceline's knack is to name a sensible price. Whilst the displays of Priceline ask the user to name any price, the website places a fine dot on the instruction: State a price, but do not anticipate that it is much lower than the cheapest price Priceline has to offer for a certain distance.

Approximately half of the inquiries Priceline receives are sensible, the firm said, and a large proportion of these inquiries are met. Maybe the firm should ask Captain Kirk to clarify the intricacies in his radios. Priceline's finances are a cause for concern. Priceeline was down $90. Thats about $35. 2 million worth of goods - mostly airline cards - but it was paying $33. 5 million for those same goods.

This is a pre-tax profit of less than 5 per cent. Figures deceive, said Priceline' founders Jay Walker. "So it is - $45. 8 million in reserve notes to airline executives and airline affiliates. Still, the residual deficit - $45 million - is a whopper, especially when it' re metered against a meagre $1. 7 million in gross gains for the year.

On an annual average, the gloomy overall profit margins conceal a major uptrend. Priceline sold in the first three months of 1998 with an absolute deficit, resulting in a 13 per cent lower overall margins. In the second trimester, the airline gained new airline business and boosted its ticketing volumes, raising the operating profit to 4 per cent.

In the third three months it was up to 12 per cent. Much of the increase in margins stems from the sale of advertising spaces on the website. Nevertheless, a 12 per cent pre-tax return on investment will not be a source of income, especially on the Internet, where the cost of branding and other developments is astronomically high. Priceline's newer stores, which include car purchases and mortgage, are priced at a fee for dealers wishing to sell goods.

However, these new business accounts for less than 5 per cent of Priceline's overall turnover. "In order to make a profit, our revenue and operating margin must rise sufficiently to meet these and other forward-looking expenses.

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