2 Replies Latest reply on Dec 27, 2011 9:02 PM by Gourish Birajdar

    Auction - Air Tickets

    Avishek Purkayastha Novice

      Does anyone have experience with auctions for Air Tickets?  Who did you invite for such event (Travel Agencies or Airline companies). What type of auction did you run and was it successful?  Any advice on this would be greatly appreciated.

        • Re: Auction - Air Tickets
          Michael Brannon Novice

          I wouldn't recommend an auction for this type of project. My company runs auctions (reverse auctions, actually) for commodities and the occasional service where inputs

          are tightly controlled -- for example, a reverse auction for a specific brand/item/purchase quantity of television: We want an Acme model 123 and are looking to purchase 500 each.

           

          You could reverse auction Air Tickets (and I hope I'm correct in assuming we're talking about tickets for travel aboard an airplane) if you are looking to purchase a known quantity of tickets, departing on the same plane from the same place at the same date/time, following the same flight path (i.e. everyone flies direct, or everyone takes the same connecting flights), and arriving on the same plane at the same place at the same date/time. Ditto for the return from destination to home. Establishing those strict guidelines will eliminate confusion and allow your vendors to bid "apples to apples." **

           

          If that's not the case -- if you're simply looking to reduce your annual spend on flights in aggregate -- in my opinion an auction isn't your most effective tool.

           

          **(Yes, I've left out guidelines on baggage fees, processing fees, and all the other little line items. I think the point has been made that airline tickets are tough to reverse auction.)

           

          Hope my opinion helps.

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          • Re: Auction - Air Tickets
            Gourish Birajdar Novice

            Hi Avishek,

            I agree with Michael,s opinion. The auction can be conducted only for spot buying of tickets for  a fixed route, time and no. of tickets. But it will be difficult to execute in case of a annual contract with airlines as the prices, availability of passenger seats and flight timings are variable throughout the year based on seasonality and demand.

            But one way to minimize the annual expense is to have a rate contract with travel agents / portal, where the service charges can be negotiated through reverse auction and you get the best deal available any time in the market.

            Hope my comments help you.

            Regards,

            Gourish