SYSTEM AND METHOD OF PROTECTING PRICES

• US 20110046989A1
• Filed: 08/25/2010
• Published: 02/24/2011
• Est. Priority Date: 11/13/2006
• Status: Abandoned Application

• Current Assignee: Microsoft Technology Licensing LLC (Microsoft Corporation)
• Original Assignee: Farecast, Inc. (Microsoft Corporation)
• Inventors: Crean, Hugh, Hsu, David, Fridgen, Michael, Bartot, Jay, Etzioni, Oren
• Application Number:
  US12/868,667
• Publication Number:
  US 20110046989A1
• Time in Patent Office: Days
• US Class Current: 705/5
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing

Abstract

A method and system for protecting prices is provided. The price protection system increases consumer confidence when making purchases by reducing the risk associated with fluctuating prices. The price protection system receives a purchase specification from a consumer. Next, the price protection system determines the risk that the prices of items matching the purchase specification will change and reports a protected price to the consumer that represents the price that the price protection system will protect based on the determined risk for a protection period. Finally, the price protection system receives a request from the consumer to purchase protection of the protected price.

Claims

1-32. -32. (canceled)

33. A price protection system for protecting a ticket price, the system comprising:

a memory storing computer-executable instructions of;

a component that provides predictions of ticket prices for flight itineraries;

a component that receives a flight itinerary specification;

a component that offers to sell price protection for a protection fee to protect a protected price for a protection period for a flight itinerary matching the flight itinerary specification based on a current ticket price and a prediction of a ticket price for a flight itinerary matching the flight itinerary specification; and

a component that, when a purchaser purchases the offered price protection and then purchases a ticket with a flight itinerary matching the flight itinerary specification within the protection period, establishes a redemption price for the price protection and compensates the purchaser based on the protected price and the redemption price; and

a processor for executing the computer-executable instructions stored in the memory.

34. The system of claim 33 wherein the price protection is offered when the predictions indicate that the ticket price for the flight itinerary is likely to decrease.

35. The system of claim 33 wherein the protection period is fixed and the protection fee varies based on risk associated with the price protection.

36. The system of claim 33 wherein the protected price is the lowest ticket price for a flight itinerary matching the flight itinerary specification at the time of the offer.

37. The system of claim 33 wherein the redemption price is the lowest ticket price for a flight itinerary matching the flight itinerary specification when the ticket is purchased.

38. The system of claim 33 wherein the redemption price is the lowest ticket price for a flight itinerary matching the flight itinerary specification during the protection period.

39. The system of claim 33 wherein the protection fee is fixed and the protection period varies based on risk associated with the price protection.

40. A method performed by a computer for protecting a price for an item, comprising:

providing predictions of future prices for items;

receiving an item specification providing characteristics of items;

providing price protection to protect a protected price for a protection period for an item matching the item specification based on a current price and a prediction of a future price for an item matching the item specification; and

when a purchaser purchases an item matching the item specification within the protection period, establishing a redemption price for the price protection and compensating the purchaser based on the protected price and the redemption price.

41. The method of claim 40 wherein the price protection is offered for sale to the purchaser for a protection fee and wherein the purchaser is compensated only when the purchaser purchases the price protection.

42. The method of claim 41 wherein the item is a ticket for an airline flight.

43. The method of claim 42 wherein the compensation is based on the difference between the protected price and the redemption price.

44. The method of claim 42 wherein the redemption price is a lowest price available for an item matching the item specification.

45. A computer-readable medium containing instructions for controlling a computer to protect a ticket price for a flight itinerary, by a method comprising:

providing predictions of likely directions of ticket prices for flight itineraries;

receiving a flight itinerary specification;

offering to sell price protection for a protection fee to protect a protected price for a protection period for a flight itinerary matching the flight itinerary specification based on the likely direction of a ticket price for a flight itinerary that matches the flight itinerary specification; and

when a purchaser purchases the offered price protection and then purchases a ticket with a flight itinerary matching the flight itinerary specification within the protection period,

establishing a redemption price for the price protection; and

compensating the purchaser based on the protected price and the redemption price.

46. The computer-readable medium of claim 45 wherein the price protection is offered when the likely direction of a ticket price for a flight itinerary matching the flight itinerary specification is to decrease.

47. The computer-readable medium of claim 45 wherein the protection period is fixed and the protection fee varies based on risk associated the price protection.

48. The computer-readable medium of claim 45 wherein the protected price is the lowest ticket price for a flight itinerary matching the flight itinerary specification at the time of the offer.

49. The computer-readable medium of claim 45 wherein the redemption price is the lowest ticket price for a flight itinerary matching the flight itinerary specification when the ticket is purchased.

50. The computer-readable medium of claim 45 wherein the redemption price is the lowest ticket price for a flight itinerary matching the flight itinerary specification during the protection period.

51. The computer-readable medium of claim 45 wherein the protection fee is fixed and the protection period varies based on risk associated with the price protection.