In the OTA industry, securing first spots on travel aggregator sites at optimal rates has big impact on overall profitability.
The Before State
Bidding rates set manually based on intuitions & experience led to either expensive over-bidding or underbidding, which reduced transaction volumes by 50% in half of the major markets upon drop in bid spot.
Developed a tool which analyzed the number of quoters, transactions and purchase rates at days to arrival level for each city to forecast the most optimized bids for ‘first spots’ on travel aggregator websites.
The After State
Net annual financial impact of $532k with the aid of cost reduction (optimized bids) of $204k and increase in transactions (higher first spot ad placements) of $328k.