Bill Gurley on the 'Rake': pricing strategies for online marketplaces

Posted by Alex on August 28, 2019

 

I came across this classic post on the "rake" by Bill Gurley written back in 2013. It's as relevant today as ever, and for anyone running a marketplace (or trading Apple or Amazon stock), it's worth a re-read. 

Gurley, General Partner at Benchmark Capital and one of the most respected VCs in the valley, highlights how transaction fees can create problems for marketplaces – even if the higher fees result in increased revenue in the short-term. 

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Dynamic Pricing for Airport Parking

Posted by Alex on May 28, 2019

Growing Airport Revenue and Improving the Trip Experience

Even with passenger volumes rising, ride-sharing is hitting airports where it hurts – parking revenue. Traditionally the top revenue source for airports, parking revenue cannot be replaced by $1 to $4 fees from ride-share companies like Uber and Lyft. Meanwhile in some markets, increases in passenger volume mask the overall shift away from parking–but still may require significant expansion of parking facilities. 

This article explores how leveraging the same dynamic pricing technology used by ride-sharing companies can help airports increase funding for operations, avoid costly infrastructure investment, and even improve the traveler experience.

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Perfect Price Wins Phocuswright Award

Posted by Alex on December 5, 2018

I am delighted to announce that Perfect Price has won the runner-up Phocuswright Award for Travel Innovation at its recent flagship conference in Los Angeles. Phocuswright is among the most internationally-respected sources for research and analysis in the travel, tourism, and hospitality industries; its flagship event is now in its 25th year and attracts thousands of senior executives from around the world, all of whom are there to learn about the latest trends in travel technology.

Selected from a pool of dozens, Perfect Price was among a handful innovative startups to present at the conference and was selected as a winner by a panel of industry expert judges (nicknamed "dragons") including, among others: 

  • Tom Botts, Chief Commercial Officer of UpLift
  • Erik Blachford, Venture Partner at Technology Crossover Ventures
  • Todd Henrich, Head of Corporate Development at Booking Holdings
  • Jim Hornthal, Managing Partner at Hornthal Investment Partners as well as Cofounder and Chairman of Zignal Labs, LaunchPad Central, M34 Capital, and Triporati
  • Regi Vengalil, Head of Corporate Development at Expedia

I want to thank the panel of "dragons" not only for choosing Perfect Price but also for their insightful questions and candor, which we hope will help shed light on the power and promise of dynamic pricing. We are particularly  excited about this achievement because it again shows conclusively that the traditional way of doing pricing is no longer sufficient in the digital economy—and that AI-powered dynamic pricing is the next logical step forward for travel brands.

Below is our winning presentation, followed by a short Q&A. I encourage you to watch, share, and let us know your thoughts by dropping us a note here.

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Costs and Car Rental Revenue Management

Posted by Alex on August 30, 2017

Most companies optimize prices to either gain marketshare or maximize profit. When marketshare is the goal, costs can largely be ignored–assuming you are a company such as Uber or Amazon and can afford to lose a lot of money for a long time, you price primarily to stimulate demand. When profit is the goal, you have to know your costs to set prices.

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What launching rockets can teach us about revenue management

Posted by Alex on April 25, 2017

Would you promise to send a rocket to Jupiter before you proved you could get one into space at all?

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Why car rental revenue management is more complicated than nuclear physics

Posted by Alex on February 27, 2017

Did you think car rental companies make money from renting cars? 

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How to test a new pricing model without changing anything

Posted by Alex on October 19, 2016

Have you ever wondered, what would happen if we made a big change to pricing? I don't mean try ending a few prices in $0.99 or $0.95. No. I mean changing everything!

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