Decoy pricing explained
Before: when only two hotel options are available to the traveller they'll often opt for the more expensive one
After: add a third, lower priced option and traveller behaviour changes
Therefore, when presenting hotel options, provide travellers with three similar choices in the same city. For example:
£185 £152 £185 £152 £142
1. A high-priced, 4-star upscale hotel 2. A mid-priced, 4-star upscale hotel 3. A low-priced, 3-star midscale hotel (the decoy)
You'll find the majority of travellers will select Option 2.
STEP 7
The good interruption Intervening or interrupting the decision process at critical moments – even with seemingly irrelevant information – can steer behaviour. Interrupt them
with ideas about fiscal or environmental responsibility at strategic times during the purchase process and they will be less likely to spend or travel irresponsibly. For example, indicate greener flights during
the research process or leverage your mobile app to communicate just-in-time reminders on preferred airport parking suppliers before the day of departure, for example.
STEP 8
The IKEA effect Based on the premise that if you help build something then you are investing in its success, travellers will find deeper enjoyment and value from their travel programme if they can be responsible for their own itinerary. Provide them with door-to-door planning capabilities, highlight various in-policy, multi-
STEP 9
Recognition bias In the absence of direction, travellers tend to opt for the choice that’s familiar to them if they’re indecisive, which isn't necessarily the right one for the company. Remind travellers which brands or choices
they last or most recently chose and which ones earned above-average satisfaction scores. If you don’t have past travel
data then remind your business travellers which particular brands and suppliers your most frequent travellers prefer. Also, frequently remind them
“If you help build something then you are investing in its success, so travellers will get deeper enjoyment and value from their travel programme if they can be responsible for their own itinerary”
of your company's preferred booking channels and suppliers.
* The BCD White Paper lists 17 key behavioural economics concepts, divided by Leverage, Compliance, Productivity, Experience, Social and Security. To download the entire White Paper, go to
www.bcdtravel.com/go/id/bmk
modal options which can be filtered by CO2 emissions, travel time, productivity and more, and use pictures, video and augmented reality during booking to enable travellers to visualise the travel components they have chosen. For example, Your Seat on seat maps or Your Car from the designated
rental car class.
THE BUSINESS TRAVEL MAGAZINE 7
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