Opaque travel inventory
Encyclopedia
Opaque inventory is a term used to describe the market of selling unsold travel inventory at a discounted price. The inventory is called "opaque" because the specific supplier (i.e. hotel, airline, etc) remain hidden until after the purchase has been completed. This is done to prevent sales of unsold inventory from cannibalizing full-price retail sales.
The primary consumer of opaque
inventory is very price conscious and is less concerned with the specifics of their travel plans. Buying opaque travel inventory is best for price-conscious travelers whose primary aim is the cheapest travel possible. Hotel discounts of 30-60% are typical, and bargains are stronger at a higher star hotel. While one has control over the dates and times of a travel itinerary, the downside is these purchases are absolutely non-refundable and non-changeable, and as noted above, the specific hotel or airline is not revealed until after purchase.
The main sources of opaque inventory are Hotwire.com
and Priceline.com
, but Travelocity.com and Expedia.com have also recently added opaque booking options to their sites. Priceline
functions with a bidding model, while Hotwire
has a fixed pricing model, meaning it sells at a fixed price and travelers do not bid for inventory. Typically hotel deals are greater than airline discounts on opaque travel sites, namely because airlines have limited seating and also take monetary cuts when publishing discounted fares, whereas a hotel sells to opaque sites to fill empty rooms.
In response to these opaque travel sites, there are also 'decoder' sites that use feedback from recent purchasers to help construct a profile of the opaque travel property. BidGoggles is one tool that focuses primarily on Hotwire hotels while there are others that provide instructions on how to best work Priceline.
The primary consumer of opaque
Hotwire.com
Hotwire is a discount travel website that offers low prices on airfare, hotel, rental cars, and vacation packages by selling off unsold travel inventory at discounted prices....
inventory is very price conscious and is less concerned with the specifics of their travel plans. Buying opaque travel inventory is best for price-conscious travelers whose primary aim is the cheapest travel possible. Hotel discounts of 30-60% are typical, and bargains are stronger at a higher star hotel. While one has control over the dates and times of a travel itinerary, the downside is these purchases are absolutely non-refundable and non-changeable, and as noted above, the specific hotel or airline is not revealed until after purchase.
The main sources of opaque inventory are Hotwire.com
Hotwire.com
Hotwire is a discount travel website that offers low prices on airfare, hotel, rental cars, and vacation packages by selling off unsold travel inventory at discounted prices....
and Priceline.com
Priceline.com
Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. The company is not a direct supplier of these services; instead it facilitates the provision of travel services by its suppliers to its...
, but Travelocity.com and Expedia.com have also recently added opaque booking options to their sites. Priceline
Priceline.com
Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. The company is not a direct supplier of these services; instead it facilitates the provision of travel services by its suppliers to its...
functions with a bidding model, while Hotwire
Hotwire.com
Hotwire is a discount travel website that offers low prices on airfare, hotel, rental cars, and vacation packages by selling off unsold travel inventory at discounted prices....
has a fixed pricing model, meaning it sells at a fixed price and travelers do not bid for inventory. Typically hotel deals are greater than airline discounts on opaque travel sites, namely because airlines have limited seating and also take monetary cuts when publishing discounted fares, whereas a hotel sells to opaque sites to fill empty rooms.
In response to these opaque travel sites, there are also 'decoder' sites that use feedback from recent purchasers to help construct a profile of the opaque travel property. BidGoggles is one tool that focuses primarily on Hotwire hotels while there are others that provide instructions on how to best work Priceline.