Originally Posted by WillTravel
Thanks, that is very helpful. I knew that sometimes sold-out hotels can still give out Priceline rooms, and that helps explain it.
Do you know if the 10% margin can include the service fee that is bundled in with the taxes? I, and other posters, have sometimes seen Priceline's rate charged to the hotel (or what looks like it) and often there isn't a 10% margin based on our bid and the taxes alone.
Is the 30% below rack rate a hard and fast minimum discount requirement?
Do you only provide Priceline one single rate, or do you have multiple rates?
Please don't feel obligated to answer. I can understand if you feel that it would give too much away to say.
I do not know if the min10 % margin includes their fee but would bet no. When a hotel signs up to PL or even expedia or hotels.com-- they contract a maximum rate and min allocation of rooms. It is at the hotels discretion to reduce the rate, hence being able to secure $50 rates at a 4 star marriott that would be £220-- , As far as room type only one room type is given which is usally a twin room (2 beds) and I beleive on the request page of PL you can "request" bedding type. One post said hotels give 50 rates if they want-- unless some hotels have special privledges that is not true. There maybe be 50 different PL rates for any given date only because the rate had been reduced by the hotel to PL again and again etc etc.
I can guarantee you that PL always makes a margin-- they are never stuck with no show charges that they do not have revenue for as they have release dates usually 1 day before and then the hotel gets those rooms back-- This is another story on why hotels have to overbook--