Monday, May 23, 2011

Another Niche Penny Auction Opens

I have long predicted that the next step in penny auctions will be sites catering to a very specific niche. This way, the penny auction can establish itself instead of competing with industry heavyweights like Quibids. There is already ScoreLuxe for luxury penny auctions and CrazyCigarDeals for cigar penny auctions. Now, there is one for hotels!

BaiduHotels is a new penny auction that actually uses a reverse penny auction model. The site is specially made for travel auctions and hotel stays. It is selling gift certificates at popular hotel destinations.

Travel and hotel stays is a very specific niche and unless the site offers gift cards of hotel chains and not specific hotels, I doubt it will generate enough bids to come out profitable. However, since it uses the reverse penny auction model (price ticks down instead of up) it is quite possible that the site ends up not making a loss. That of course doesn't mean that users will like to be a part of the site though. In any case, it is a good attempt to enter a niche penny auction. 

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