[Tripbtoz (trip bee-to-zee) Company Background]
Tripbtoz is a highly personalized online travel platform that recommends vacation and travel packages based on individuals’ personal preferences and trends. Tripbtoz users are connected with over 300,000 hotels across the globe and can write and read real-time reviews from all over the world. The company aims to develop a platform that lets users book flights, rent cars, and purchase a variety of activity packages in real time.
The online travel site Tripbtoz, which was founded in February 2017, introduced the ‘Price Hunter’ (박대리), an AI assistant that monitors rate changes in bookings and refunds the difference in points to the buyer in the event of a price decline. Price Hunter was born at the expense of marketing budget as Tripbtoz’s efforts to prioritize delivering value to customers over advertising.
While most global travel sites have a lowest price guarantee policy, it is nearly impossible to put it to use in real life. To receive refunds for a change in hotel rates, customers have to report the change and the changed rate must be valid at the time of confirmation by a representative. Since hotels typically offer discounted rates on the day of, timing is out of synchronization.
With Price Hunter, Tripbtoz has detected a price decline in 51% of all its bookings and refunded the difference in points. The average decline in hotel rates was 5.2%. Not having to worry about unpredictable rate declines, Tripbtoz customers make a reservation an average of 38 days before the check-in date and spend an average of ₩400,000 on one reservation. Considering the Korean market average between ₩40,000 and ₩60,000, it is significant.
“Even if the rates decline without your knowledge, you get compensated for the difference. It frees you from dealing with fluctuating hotel rates,” said Yoon Suk Oh, Tripbtoz’s Development Lead.
[Price Hunter Example]
Tripbtoz Customer Kim made a reservation for a 3-day stay at Hotel B in Barcelona, Spain from July 14th to 17th 30 days in advance. With a 15% 30-day early booking discount, Kim paid ₩940,000. 3 days before Kim’s check-in date, however, the original rates fell by 25% for 3-day early bookings to fill empty rooms. Price Hunter detected the change and rewarded Kim points equivalent to ₩110,000.