System and method of protecting prices

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.

1 - 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.