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Re:Google to Offer a Best Price Guarantee on Certain Flights by JumpCrisscross on Friday August 09, 2019 @04:56PM (#20658197)
> it is likely that simply by observing their pricing over time a sophisticated Google algorithm has "learned" the airline's less sophisticated ones

Simple systems acting in concert are devilishly complex. (Former algorithmic trader.)

Counterparties' systems fail. They misfire. They get confused by the weather and interns punching in parameters wrong. Internal dynamics, like someone stretching to hit a goal or getting lucky on a hedging contract, are material and unpredictable.

And that's the least of it. The limits on the sorts of adversarial behaviors that manifest when counterparties know you have an algorithm watching are profound. It incentivises betting against the watchman. Google may have the data. But the airlines control the book.

Re:Google to Offer a Best Price Guarantee on Certain Flights by evrydayhustling on Friday August 09, 2019 @06:35PM (#20658756)
Does anyone know enough about airline pricing to deconstruct the risk here? Are providers like Google required to disclose the underlying airline price, so Google is absorbing your risk of regret on that? If not, and Google has discretion in what to quote, isn't this guarantee really just a promise not to offer you a better price later?
Re:Google to Offer a Best Price Guarantee on Certain Flights by squeaky-clean on Friday August 09, 2019 @07:04PM (#20658920)
I work with airline pricing but I'm no expert on that (this vertical is ridiculously complex. Half for necessary reasons and half because of 70 years of technical baggage), and I'm also no legal expert. So take everything here with a million grains of salt.

But I do not believe so. From my experience airlines are extremely strict about their partners displaying correct pricing. I've been told displaying a price lower than what is available is illegal / a liability and work under that assumption but I'm not the person who knows the specifics. However displaying a price higher than the lowest available will also get us in big trouble with the airlines. Maybe my work is biased since I deal with promotional campaigns and ads, but the general reason for a complaint will be something like (just making up fake examples) the airline having a 24-hour sale, and because we our systems didn't pick up on that for 2 hours so that's 1/12 their marketing budget thrown away.

Furthermore, many airlines don't directly manage their own booking and pricing and instead have it managed by a third party. So aside from legality and conditions from the airline, you can also be bound to conditions by your reservation system. There are plenty of them, but if you want one to Google for your curiosity Sabre Corporation is the largest.

Re:Google to Offer a Best Price Guarantee on Certain Flights by leereeves on Friday August 09, 2019 @10:55PM (#20659856)
It seems to me that Google probably expects to lose some money, but they've decided it's worth it to buy some market share for their new product.
Re:Google to Offer a Best Price Guarantee on Certain Flights by bob_theslob646 on Friday August 09, 2019 @05:12PM (#20658290)
I am so lost as to what you are trying to say. What is your point?

Google does have a tremendous advantage if it controls the _flow_( sending traffic/customers to airlines) versus the airline's having control of the book.

Re:Google to Offer a Best Price Guarantee on Certain Flights by JumpCrisscross on Friday August 09, 2019 @05:16PM (#20658315)
> What is your point?

It's not a simple problem. It's unlikely Google has it remotely solved.

> Google does have a tremendous advantage if it controls the _flow_( sending traffic/customers to airlines) versus the airline's having control of the book

Google is one of many online travel agents for airlines. It doesn't control the flow.

"Controlling the book" means airlines know who has booked how many tickets and at what price. They control how many tickets are left. They control whether and when a flight flies. They control prices.

Reselling tickets is a distribution problem. Guaranteeing prices is a trading problem. Google has a pitch with the former. It holds few cards with the latter. The only stick it holds to dissuade aggressive behavior from airlines is cutting them off from its distribution.