What is the meaning of Auction Site in the hotel industry?
An auction site is a website, where the price of a product or service is determined by the winning proposal. The auction site allows the user to appeal their own price for any posted products or services within a certain time period. The price rises depending on the bidding by the public. The person who bid with the maximum price within the set time period will be the winner.
This tool is often used by Hotel Income Managers to sell unsold record at a lower price, in a dense way.
Instances for an auction site are: Ebay, Name Your Own Price (Priceline), Hotwire, eBid, Webstore.
Auction sites like Priceline are able to get the customers a substantial discount while not publicity directly the price of any particular hotel. As a substitute, they let the customer bid on a star-rated choice of hotels in a specific area. Hotels which want to fill up their property are willing to let rooms trade at a much lower amount.