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Both Priceline and HOTWIRE each have their own "terms of service" which are the actual rules which govern your puchase, but here is a short tutorial on each:

Priceline and Hotwire share many similarities, as well as many differences.

The general theme of each service is that you will get a great deal, but will only be told the name of the hotel after you agree to purchase it. This is presented as a “win-win” since the hotel is able to get revenue for a hotel room that would have otherwise gone empty, and the consumer gets a great deal. As well, by not disclosing the name of the hotel until it is purchased, the hotels are able to charge higher prices to guests that only want to stay at their specific hotel and book through “traditional” methods.

With Priceline you are able to pick the area you’d like the hotel to be in, the dates of your stay, the minimum star rating (quality level), and the price. You tell Priceline that you want a hotel in XYZ city, 4 stars or better, and you are willing to pay $50/nite. Priceline will then see if they have any rooms that fit your criteria. If they do, you now own it.

HOTWIRE follows the same general theme, except Hotwire allows you to pick the area you’d like the hotel to be in and the dates of your stay. Hotwire will then show you prices for a variety of hotels (without disclosing the names) at different quality levels, as well as what amenities are available at each one. You can then decide which, if any, you’d like to purchase. Once you agree to buy the hotel, the actual name and address will be revealed.

If you have any questions about either service, feel free to ask. The users here are a friendly bunch and will be happy to help.