Is it worth it to provide customers with price comparisons for last-minute travel?

How L’TUR succeeded in increasing the website’s conversion rate by 70% using market research

By Vocatus, a market research agency specialized in pricing and marketing.

Why?

Test out the idea behind the travel price comparison

The low cost/last minute travel company L’TUR had developed a price-comparison engine for its own internal purposes, in order to assess the prices offered by its competitors and adjust its pricing strategy accordingly. L’TUR needed to undertake a cost/benefit analysis for the introduction of their new tool, and understand how people would react to this new offering and how it would impact both the direct booking effect and the indirect image effect of the brand.

How?

Behavioural Economics

The findings of behavioural economics were the basis for this project. The first step allowed to discover that L'TUR has five different types of clients: Bargain Hunters, Risk Avoiders, Price Accepters, Indifferent Buyers and Loyal Buyers. These five types have different motives behind their search and booking behaviour. The research used various tests to examine the effect of the travel price comparison tool on the different client types. This allowed the study to make a valid prediction about whether the tool would work in practice.

So what?

Increased website’s conversion rate

Research revealed that clients leave the L'TUR website and see what the competition have to offer. Hence the idea of the "travel price comparison tool" by displaying competitors' prices directly on L’TUR’s website. L’TUR took away the client's need to carry out his own search. A somewhat paradoxical and risky idea that resulted in the website’s conversion rate increased by an incredible 70%. After this research project, the travel price comparison tool has been successfully integrated into the L'TUR website.

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