This is something I've wondered about for a while...

Let's say a hotel has a Priceline rate of $42 a night. I bid $60 on Priceline and the hotel accepts. If my understanding is correct, Priceline still pays the hotel only $42 and gets to keep the difference between my bid and the PCLN rate, which in this case would be $18 per night on top of whatever the transaction fee is. Is this accurate or not?

Also, what if you book a multiple-night Priceline reservation but no-show? I've heard that Priceline often only has to pay the hotel for the first night and then they just pocket the rest. Any idea?

Just trying to better understand how the Priceline business model works.