HOTWIRE JUMPSTARTS PLANNING ACTIVITY WITH TRIPSTARTER

By: Gregory Saks

May 18, 2007

Travel price prediction and modeling tools are evolving rapidly, and Hotwire is the latest to implement such a functionality on its site. Using the Hotwire TripStarter tool that was launched in February, consumers can view trended historical pricing data for flights and hotels. The display gives consumers an easy way to identify the lowest-priced time to schedule a trip. The TripStarter product joins price modeling offerings from Farecast, Kayak, Farecompare, and others, but are consumers really using this information?

After launching in February, Hotwire's TripStarter product attracted 20,000 users during the full month of March, or 0.4% of Hotwire's total U.S. site traffic of 4.9 million. Of the visitors to the TripStarter homepage, 60% actually engaged with the tool and performed a search. Beyond performing a search to look at price trend charts, the tool does not contain additional unique functionality.

Does usage of the TripStarter tool increase a consumer's likelihood to book travel? The opposite effect may take place: 4.0% of March TripStarter users booked a travel product on Hotwire in the month, compared to 4.7% for the website overall. If consumers are using a tool that helps them plan the timing of future trips, it is an indication that they are not far along enough in their consideration process to jump into completing a transaction.

Hotwire has developed a compelling, albeit bare-bones, tool for consumers. The consumers who are most likely to use it, though, are often not ready to book. As a result, additional features that are built around the tool should focus on generating an ongoing dialogue with consumers rather than force-feeding them into a booking funnel. If Hotwire evolved its TripStarter tool into a vehicle for getting inserted into the early stages of planning cycle, it could significantly improve its effectiveness, and other marketers should take note.