Analysis of NYOP Business Model: Take Pricelinefor Example

Luhan LI

Abstract


With the popularization of global information technology in the world, the Internet companies develop rapidly. Now, Priceline.com is the world’s largest Internet service online travel company since its build in 1998. The success is mainly due to its core business model Name Your Own Price (referred NYOP). This paper introduces Priceline’s development and operation of NYOP unique business model. Innovative business model achieves without putting in a lot of resources in the case of lean value creation. This article also analyzes the reasons that NYOP make Priceline success. Finally, paper analyzes the company’s future development and the potential development in China.


Keywords


Priceline.com; Online travel; Name your own price; Business model; Market potential

Full Text:

PDF

References


Hann, I., & Terwiech, C. (2003). Measuring frictional cost of on-line transaction: The case of a NYOP retailer. Management Science, 49(11), 1563-1579.

Kagermann. (2008). Business model innovation is more important than product innovation. Informationization, (16).

Priceline SEC filing 10-Ks. Retrieved from http://yahoo.brand.edgar-online.com/Default.aspx?companyid=3671&formtypeID=7

Terwiech, C., Hann, I., & Savin, S. (2005). Online haggling at a name-your-own-price retailer: Theory and application. Management Science, 51(3), 339-351.

Xu, J. H., & Xu, W. J. (2008). Competitive analysis of online pricing strategy about reverse auctions. Systems Engineering: Theory & Practice, (5).

Xu, Y. Q. (2008). A study on online reverse of perishable commodities: Based on Priceline (Doctoral dissertation). Xidian University, Xi’an.

Xu, Y. Q., Wei, Y. H., & Hu, Q. Y. (2008). Revenue management problems for customer-and seller-pricing based on Priceline. Journal of Management Sciences in China, (6).

Xue, Q. H. (2010). The business model innovation of online travel company in E-commerce environment (Master’s thesis). Shandong University, Ji’nan.

Yeung, C. (2011). Dark horse: Priceline. Business Value, (11).

Zhang, X. (2012). Application research of reverse auctions in online travel companies: Take “Yueyu” Hotel as an example. Modern Business Trade Industry, (16).




DOI: http://dx.doi.org/10.3968%2F4499

Refbacks

  • There are currently no refbacks.


Reminder

How to do online submission to another Journal?

If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.



We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; css@cscanada.net; css@cscanada.org

Copyright © Canadian Academy of Oriental and Occidental Culture

Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada

Telephone: 1-514-558 6138

Http://www.cscanada.net Http://www.cscanada.org

E-mail:css@cscanada.net, css@cscanada.org