The Cleartrip Hurry Algorithm
mobocube.com
mobocube.com
My name is Hrush. I am one of Cleartrip's founders and I'd like to clarify how things actually work.
Firstly, the "X seats left" feature is not an 'algorithm' at all. It is a simple count of the number of 'seats remaining' at a specific price point for a specific flight departure.
In the example illustrated in the post, there is only a single seat left at a price point of Rs. 34,255. This does not mean that there is only one seat left on the flight, it means there is only one seat left at that specific price.
When the search was repeated for 2 travellers, the price per person increased to 35,746, and then increased to Rs. 37,008 per person when the search was done for 4 travellers.
Airline pricing is based on 'fare classes' or 'buckets'. Buckets typically work like this:
1. Each bucket is allocated a fixed number of seats.
2. Each bucket is associated with exactly one price point
3. When there are no more seats available in a bucket, seats from the next highest bucket are displayed and so on
At Cleartrip, we work hard to give our customers the best prices. We never have and never will engage in the "fake scarcity tactics" that this post accuses us of.
I'd also like to point out again that we have a tool tip on the button that clearly reads that there are 'X seats left at this price'.
Don't you agree that the user's perception of this UI is that fake scarcity tactics are being employed?
http://en.wikipedia.org/wiki/Yield_management
We wanted to our users to be able see how long a price point is going to remain available. Our hope is that most users will be able to make better decisions about whether to book immediately or to wait a little longer.
With respect to whether the price differences are huge or not, the prices are going to be higher. Travel is an extremely price-sensitive category and India is an extremely price-sensitive market. So, in our opinion, this feature lets users make better decisions.
Since the button seems to be causing some confusion, we'll see what we can do to best improve it.
> We wanted to our users to be able see how long a price point is going to remain available.
On a flight where every single seat represents a discrete price point, this information becomes dubious at best. What's more, the UI on your website makes the semantics of this very murky, culminating in unnecessary misunderstandings like this article.
To make it perfectly clear: I'm not suggesting there is anything wrong with your business practices. Instead, the fault lies with your user interface for not making the distinction clear between the number of seats available on the flight in general and the number of seats left at the current price point (which is almost ALWAYS equal to the number of seats the user has requested).
Relying on tooltips is probably a bad idea. Maybe change the button text to 'X seats at this price'. Don't make me think. :-)
On the bright side, be thankful for the good user feedback. I wish everyone who stopped using my product wrote a blog post.
[] Not that I endorse that practice.
Edit: Just saw another person's reply that it does indeed happen sometimes.
You will never convince anyone here that the wording of the badge wasn't deliberately designed to promote the feeling of scarcity.
What I'm suggesting, however, is that this isn't really a bad thing. It's a little tough to call you guys out on the practice of optimizing the site for sales... we'd all be very hypocritical if we did that (since the next popular article on HN is just as likely to be a treatise on the fine art of A/B testing the wording on a "try it now" button).
I think what everyone is asking for is just that you say "yes, our tests showed this wording worked very well to increase purchases. However, perhaps we went a little too far. We'll reword the button."
What you SHOULDN'T expect is for any of your peers on this site to honestly believe the connotation of your explanation, which seems to be "the badge OBVIOUSLY represents the number of seats left at this price, instead of seats left on the flight. But since a few people have this weird interpretation, we'll change it just for you."
But you know what... I suspect it's all moot. I'm sure the way it's worded now ultimately generates the highest sense of urgency in the customer, but "1 left at this low price" probably generates a similar urgency.
We agree that we need to work on improving the design of the feature and we will be doing just that. “X seats left at this price” is a better label, but may be too long to fit for the way it is currently designed, so we will need to think about how we can best convey the information better.
This might be the best of both worlds, because you can keep the wording but you also let people know there's more information about what it means.
EDIT: Another idea...
So, you could make the price plus the "x left" be a single graphical unit, thus strongly tying the "x left" to the price, rather than to the seat selection. Then, right below that in a light font, you could say something like "12 left from $y to $z".
So, as an ASCII art example: http://pastebin.com/tS8MPeXK
We'll be making some changes to it very soon and we'll post details once the changes are live.
It actually looks like a neat feature which shows you how many seats are left in the cheapest fare group that applies to your settings.
EDIT: I just did some more testing, searching for different person counts, and it does exactly what I thought.
When you get "3 seats left" then you can book for 3 persons for the cheapest price, and whenever you add a 4th person, the price is higher than four times the 1-person price
Anyway, their website at some point had two hidden features: if you tried to book in a group it would charge you more per person (because you're depriving them of "credit card surcharge") AND just checking the price of a certain flight a certain amount of times (showing interest in that flight) would raise the price by some increment for every other customer on the website automatically.
All retail (web or bricks-and-mortar) and services advertising is lies pretty much at this point. A colleque gets an SMS from the local Bannatynes gym that he used to be a member of telling him about a limited time "rejoin" offer that has limited places. He has had the same message at least once a month for the last twelve months so basically both the calim of limited places and the claim that it is a limited time offer are basically lies. Or the DFDS sale "you'll never see these prices again!!!!!". The list is endless.
By being dishonest in these ways, some in the retail and services industries are pushing people like me (people with enough money to not mind that they might sometimes pay a little extra in order to avoid being lied to) away.
Having said that, the example given here isn't actually lying (they don't say "only X seats available") though it is misleadingly presented, either accidentally or the site is being deliberately disengneuous, and if that is deliberate than it is little better than a lie.
PS: I kinda take the word "algorithm" in teh lheadline as link bait. Without it, I would have never klicked the link.
P.S: I'm not the author, I only found the article interesting when I found it on twitter.
Someone on twitter mentioned that they had bought some flight tickets only because of this 'confusion' : https://twitter.com/#!/jayeshb/status/162512878287589377
Is that a one-off case because of confusion?
When deciding between being shady and getting more money, and being honest and getting less money, they already chose their side.
Details of the design changes: http://bit.ly/y3uvv0