Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,579
It's all detailed in their annual reports. The travel provider gets what they ask for, Priceline gets 100% of the overbid.
In their early days, it appears Priceline did accept bids lower than the price they paid a travel provider. That does not appear to be the case so much anymore, except they now offer "Bonus Money" which does sometimes have a similar affect it would seem, but not always.