Join Date: Feb 1999
Location: San Jose, California, USA
Programs: AS 100K, UA MM, AA MM, IC Plat Amb, Marriott Gold, Hilton Gold, Hyatt Explorist
Posts: 3,146
I think that hotels that cheap out on Priceline rates are doing themselves a disservice. Although people can't choose a specific hotel when bidding on Priceline, if they are given a great room and have a great experience, they might just decide to return to that specific hotel (and pay more) because they know what they are getting.
Conversely, if they are given a poor room, they might not think the hotel is worth paying more for. I can't imagine why any hotel would give a guest a poor room intentionally, because that pretty much ensures they will never be a repeat customer.