How much is Hotwire's margins on its opaque deals?
May 10, 2016, 12:34 am
#1
Original Poster
Join Date: Apr 2016
Posts: 1
How much is Hotwire's margins on its opaque deals?
If I understand correctly, on its opaque deals, Hotwire adds their margins(profits) on top of the rates that
hotels provide. I'm wondering what percentage or a fixed amount do Hotwire add on top?
hotels provide. I'm wondering what percentage or a fixed amount do Hotwire add on top?
Last edited by badgerbucky; May 10, 2016 at 12:41 am
May 26, 2016, 6:08 pm
#2
Join Date: Apr 2000
Location: Toronto, Ontario, Canada
Posts: 3,665
The famous Utell articles on Priceline and Hotwire rate-setting for hotels has been put behind a security wall. However, there is a very detailed analysis for Priceline bid prices that also will apply to Hotwire at this link: http://scholarship.sha.cornell.edu/c...ntext=articles
But if you try to read it, you probably will be sorry you asked.
But if you try to read it, you probably will be sorry you asked.
May 26, 2016, 6:11 pm
#3
Suspended
Join Date: Oct 2006
Location: Atherton, CA
Programs: UA 1K, AA EXP; Owner, Green Bay Packers
Posts: 21,690
I've seen rates on a number of hotels booked through these sites when they hand me the sign in sheet. For a $75 room, the markup is often $5-10. Don't know if it is more on more expensive rooms.
May 26, 2016, 8:30 pm
#4
Join Date: Dec 2009
Location: New York, NY
Programs: AA Gold. UA Silver, Marriott Gold, Hilton Diamond, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,776
I booked a room via priceline years ago and the hotel oversold and had to walk us to a W in a city center location. Part of the agreement included refunding our stay at their hotel and covering our W stay expenses. The hotel screwed it up and after 60 days later Priceline refused to refund to me directly. So they sent me a check instead for the Rate-12.5%. I wasn't going to argue to get the 12.5% back as the hotel originially cost me under 100$ and paid out close to 350$ to the W.
May 28, 2016, 11:14 pm
#6
Join Date: Dec 2010
Location: DEL
Posts: 1,057
My experience is identical to this--a $55 hotel room costs Priceline somewhere in the $45-50 neighborhood. I've even gotten mistakenly billed a couple times (fixed without incident by the hotel in both cases), so I know that's what the hotel was collecting.