Priceline, the online travel agent, has been running a promotion (which I blogged about here) on their website which offered a refund should the weather be inclement while a customer is on holiday. Weatherbill provided the structure and derivatives traded backstop for this promotion. Now some figures are emerging from one of the internet measurement companies on how this promotion has impacted what is known as their conversion rate.
First a lesson in web measurement… In the e-commerce world, a conversion rate is a metric for the number of users of a website who perform a certain interaction or task, for example made a travel booking. This is a widely accepted metric used to ascertain the effectiveness of website promotions or functionality.
Compete, a web measurement and analytics firm, have released some data specific to the Priceline weather guarantee promotion which shows that it has been extremely effective at converting visitors into customers. They say that the measurements they have taken show that visitors who interacted with the Sunshine Guaranteed promotion were twice as likely to actually make a booking. This suggests that the promotional offer of weather proofing your holiday was enough to increase the tendency of visitors to book with Priceline.
This could result in a lot of coverage for Weatherbill as Compete are a popular tech company and this will no doubt end up on blogs all around the world and of many topics which is great for the weather risk management industry as a whole.
Read the full report on Compete’s blog.