The encyclopedia · Marketing & Brand · Marketing decision · 2012
Orbitz showed Mac users pricier hotels — and called it personalisation
Mac users spent $20–30 more per night, so Orbitz sorted their results toward four- and five-star hotels. The WSJ called it price steering.
Orbitz Worldwide · 2012-06
What happened
In June 2012 the Wall Street Journal reported that Orbitz, the online travel agency, was showing Mac users different hotel search results from PC users. Mac users were 40% more likely to book four- or five-star hotels and spent $20–30 more per night, so Orbitz sorted their results toward pricier options.
Orbitz insisted it was not charging different prices for the same room — the difference was in sort order, not price. Mac users could still find cheaper hotels by scrolling. The CEO was publicly proud of the practice, calling it predictive analytics working as intended.
The story triggered a broader debate about whether data-driven personalisation crosses a line when it steers customers toward spending more. Regulators and consumer advocates questioned the practice, and Orbitz became the textbook example of 'price steering' in the personalisation debate.
Why it happened
- A correlation (Mac owners spend more) was treated as a licence to steer, not merely to recommend — the line between the two was never drawn internally.
- The CEO defended the practice publicly instead of acknowledging the optics, turning a product decision into a PR story.
- No one asked whether customers would feel manipulated if the sorting logic were printed on the search page.
The lesson
Personalisation that only benefits the seller reads as manipulation. If the logic embarrasses you on a front page, it will embarrass you on one.
Sources
- NPR: Orbitz Targets Mac Users For Pricier Hotels
- Forbes: Why Orbitz Steers Mac Users to Costlier Hotels and Rooms
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