1.0 Determine how you might be able to create value

Wotif.com has succeeded in creating value for a basis of customers, which includes the users of hotel rooms and hoteliers regularly burdened with a supply of unsold rooms. This value originates from an established practice of offering un-booked rooms at a reduced price. While this practice has offered somewhat of a solution for hoteliers and the one-off bargain for some travelers, it has always been viewed as unreliable and highly inaccessible for many.

By redeveloping this practice on its easily accessible website, Wotif.com has identified clusters of trapped value. The previous offline market for unsold hotel r

It is important to determine the attractiveness of the opportunity to identify threats of competitors, as well as spotting new opportunities in the market. Wotif.com¡¦s various direct competitors are online hotel booking companies such as Lastminute, Expedia, Priceline, and Travelocity. With Lastminute¡¦s Web User Reader Award for ¡¥Best Travel Site¡¦ in 2002 (www.lastminute.com, 2002), it is proposing a huge threat to Wotif.com¡¦s business. Hotels, travel agencies, and other accommodations are indirect competitors that are reaching and attracting same customers as Wotif.com. With advanced technology, Wotif.com is able to meet the increasing demands of huge inventory and heavy visitor traffic at the last minute. With 2000 bookings made per day and an increasing trend of individuals purchasing last-minute hotel accommodations, Wotif.com has a great opportunity in the market with such high growth rate (Nash, 2002).

5. Assess how attractive the opportunity is

Segmentation is a process of grouping customers based on their similar needs. Wotif.com targets customers who need last-minute bookings by demographic, geographic, and occasion segmentation. Age and income are targeted in the demographic segment. Income is an indicator of price-sensitive customers such as budgeted or last minute travelers. People under the age of 40 are more likely to be Internet users and buyers (Mohammed, 2001, 116). Wotif.com targets customers who want to travel to countries such as Australia, New Zealand, and United Kingdom. The company also used situational segmentation such as routine occasions, special occasions, and business trips. To be effective, Wotif.com has to ensure that the segmentation is both meaningful and actionable to increase customers¡¦ likelihood of using Wotif.com¡¦s services. The segments are meaningful as there is an increasing travelers demand for last minute accommodations and actionable because the target segments are large and profitable enough to serve.

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