I don't see a timeline - you book the hotel with Priceline and immediately call the hotel? The hotel can't see your Priceline transaction. The hotel places their inventory into a computer system and Priceline sells what they have access to in that system. If the hotel has no rooms available, then it is their obligation to remove them from the system. They accepted the reservation from Priceline so it is their obligation to find you a place to stay at no additional cost. If they won't do it, you must contact Priceline immediately and Priceline deals with the hotel. If you simply don't show up then you are obligated to pay. I once had a Priceline booking that a hotel claimed it didn't have and for which I had a confirmation. They also said they were full. I called Priceline's support number on the reservation - they called the hotel and a room became available. I have often stayed at hotels where the hotel's reservation system says no rooms are available but Priceline does get a room anyway - perhaps they are holding a block of rooms separately. My advice is that if you have a reservation, show up and demand your room. If necessary, call the booking agency to get it fixed. The solution has often been an upgrade in room or an alternative hotel that is better.