Farecast Technology is pretty incredible. Type in your itinerary and Bing Travel recommends whether you should buy your tickets now… or hold tight just a bit.

They’ve aggregated data, developed algorithms and built predictive models. All towards the end of understanding what the airlines are going to do with their prices before the airlines actually do it.

I have a feeling that airline fares are just the beginning. Case in point, Murphy USA just released an app that helps you find the cheapest gas in your area (something Progressive has been doing with insurance for years). This type of technology can fundamentally change how Price Wars work. Your next move depends on what kind of brand you have.

Scenario One: Cutting prices is a necessary evil of the sales cycle. Things just got worse. The old adage – If you offer a sale, consumers will learn to wait for a sale – is taken a step further. “When is the best time to buy this? Wait, let me check.” And if I can predict if and when you will lower your price on that widget, your brand matters more than ever. And my bottom line is this: Can you justify your higher price or should you just skip to your final offer?

Scenario Two: Sales are a part of the brand experience. Things just got better. Bargain hunters have acquired another tool and the game just got more fun – a new study from Deloitte shows just how fun it is to save. “How can I stretch my dollar the furthest? Wait, let me check.” And if I can predict that next Saturday is the day where I’ll be able to work my most magic, your brand becomes more important to me than ever. Because you offer me the ability to succeed on whatever measure I choose. It’s no longer just about a sale, it’s about a brand experience.

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