Online Travel Booking and Bidding Agencies - 2007 Priceline Savings Results




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Matt-KC
Jan 13, 08, 7:16 pm
I started using Priceline heavily this year as I found that saving real $$ was more important to me than earning points in many cases. As a result, from 1/1/07 through 12/31/07 I tracked my priceline wins along with the rates of booking the hotel directly to do an analysis on exactly how much I was saving, and whether it was worth the effort. I know many others have needed to make the same considerations and hope that by sharing my results, it may help others decide if using Priceline (or another opaque channel) is worth the time and effort.

Nights in 2007 booked via Priceline: 123
Star Levels: Ten 4*, One Hundred Seven 3*, Six 2.5*

Priceline total Before Taxes/Fees: $5320 (Avg 43.20/night)
Direct Booking total before Taxes/Fees: $14885 (Avg 121.02/night)

Total Savings: $9565 ^

Priceline total including taxes/fees: $6848.11
Direct Booking total including taxes/fees* (estimated): $16522.35


Note that I had to estimate the taxes on the direct bookings as not all sites listed them in the same manner or individually....however I was generous to the direct booking estimation by using an 11% rate...some areas are much higher than that due to the practice of cities over-taxing hotels to pay for their various arena's, infrastructure, museums, zoos, etc. By using only 11%, it actually favors direct booking in the comparison by lowering their total...so using the "before" comparison is more accurate.

Neither comparison includes any incidentals such as parking, internet, room service etc...but these items are likely charged regardless if you booked direct or through an opaque channel.

The rates used in the direct booking totals were the lowest rates available on the hotels own website at time of PL win, including pre-pay rates since PL is a pre-pay as well.

Not included in the totals above were two stays that were refunded by PL due to the property being under renovation and having no a/c or heat.

Out of the 123 stays completed, I only had one stay where I was treated badly for being a PL customer...and even on that stay, after the front desk MGR who was the one being rude and outright lying had left, another agent working the desk, who had over-heard the situation, came to my room and moved me to an acceptable room, apologized for the MGR's actions and urged me to write a formal complaint to corporate as the specific MGR has a history of doing this and the property GM looks the other way. So in the end, really no bad stays.

Also note that I do book hotels directly as well, especially if an area has a really crappy property I want to avoid...the key here is to do your research first so that you know going in what hotels you might get, and knowing when to forgo PL in order to avoid getting a dud.

For me, the $9565 savings more than paid for the value of points/rewards had I booked directly. I usually travel solo so getting top-tier in a program, and subsequently looking for suite/best room upgrades are really not high on my list. That said, I still often get upgraded to SPG/Club floors, concierge levels, Regency Club floors and occasionally suites even on a PL booking. Being polite and non-demanding goes a long way in getting a decent room from a front desk agent, whether on a PL stay or not. I have never specifically asked for an upgrade on a PL stay, but I do ask for a quiet room which usually triggers the upgrades mentioned above. I also occasionally received points/stay credit for PL stays without even asking...most came from the check-in agent asking for my reward card if I had one. Those points were enough to pay for 8 nights of award stays. I also book PL through ebates which has earned a few more nights via the cash back.

Sorry for such a long post, but I hope some of this helps others decide whether using an opaque channel is right for them....especially considering the $$ savings you can get if you research and plan accordingly.


WillTravel
Jan 13, 08, 9:39 pm
I think it's pretty clear you did very well with Priceline.

As for the total money saved, I can see the merit of comparing it to the hotel's lowest rate, but I think the metric I would use is the lowest rate that I could get at an acceptable property.

Say the cheapest rate for an acceptable property that I can get in a particular city is $100. I am excluding taxes and fees from this consideration.

Say I get a Priceline hotel for $70, and its lowest rate elsewhere is $200.

I wouldn't say that I saved $130 per night, but that I had saved $30. Most likely, but not necessarily, the Priceline hotel is nicer, of course.

zbenye
Jan 14, 08, 12:23 am
I also book PL through ebates which has earned a few more nights via the cash back.

Ebates gets you 2% back. You might want to switch over to FatWallet where PL gets 3% back. And now 4% during most of January.


boxo
Jan 18, 08, 3:16 pm
^ Great post, Matt-KC. I luv stats on these kinds of things. I think you've inspired me to keep a 2008 tally.

allset2travel
Jan 18, 08, 4:29 pm
Great stats and informative post.
Out of the total number of hotels that your "pricelined" and won, how many were outside of US?
I am a light user of priceline. Am always amazed how others can so successfully won bids.

Beckles
Jan 21, 08, 9:28 am
Ebates gets you 2% back. You might want to switch over to FatWallet where PL gets 3% back. And now 4% during most of January.I've started using MyPoints, which pays 3 points/dollar, which I then convert to either UA miles (5,000 MyPoints = 2,500 UA MP miles) or HHonors points (5,000 MyPoints = 5,000 HHonors points), I consider that roughly the same value as teh 3% back, I do go back to FatWallet when they have the 4% "sale" as they do this month.

krobbins
Jan 21, 08, 9:37 am
While I haven't done nearly as many nights as the OP, I too have had good success with PL. The money saved has more than made up for the points that weren't earned. Also, I will say that my less-than-scientific analysis shows that I have done better than 50% on getting miles for PL stays, particularly at one chain, which I won't mention lest the lurkers clamp down on this. Since much of my travel is paid for by me, not reimbursed by work, saving 50% or more is more critical to me than the points and I do maximize those when traveling on the company dime.

Anyway, thanks to the OP for the great breakdown. I think I'll be tracking that this year too with your example.

kukukajoo
Jan 21, 08, 5:01 pm
Can't you use a card that accrues points for every purchase as well as FW or Ebates and maximize your savings and still collect points?

ColoBill1
Jan 21, 08, 9:14 pm
Star Levels: Ten 4*, One Hundred Seven 3*, Six 2.5*

Priceline total Before Taxes/Fees: $5320 (Avg 43.20/night)


I am quite surprised at this rather low average per night rate, considering the * level of the hotels you bid on, and since you have 10-4* included.

Not sure of the geographic locations your bids covered, but I am finding out that all of the 2.5* and a majority of 3* I have accepted are minimum $45, and many $50 or more a night, and that is almost exclusively for weekend stays.

I add on another $7 for a bid fee before computing the savings using Priceline, over the best available rate I could have gotten booking directly.

jayflyer
Jan 22, 08, 4:28 pm
You did pretty well with PL and considering the volume, the extrapolation data is valuable. I also agree with willtravel point that you really have to look at the area averages, and not at the specific hotel price to figure the savings. :)

USAFAN
Jan 23, 08, 10:15 am
2007 Priceline Savings Results
Matt-KC:

Thanks. Great post!

I have had also great success with Priceline .. especially in Europe. Often got a $-price much better/lesser than Euro-price .. $ to Euro being 1.46

Thanks again^

BTW, I don't agree with WillTravel and jayflyer. You have to compare apples with apples, 3-star hotels with 3-star hotels, 4-star hotels with 4-star hotels!
When I know a "cheap acceptable property" in a city, I offer even less at Priceline for a better (like 4-star) class in that city.

USAFAN
Jan 23, 08, 10:23 am
Ebates gets you 2% back. You might want to switch over to FatWallet where PL gets 3% back. And now 4% during most of January.

True or Not True?

I have read (may be here at FT) that going through Ebates or FatWallet may influence/lower your chances to win at Priceline ...

I have used the eBay link for some time (it's gone now), never Ebates or FatWallet.
Any comments ...?



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