You have to remember one thing .. that PL as great as it is to us, still represents only 1% of the total hotels booked online. I read an article which mentioned that in some cases, PL has helped the 'off the strip', or 'out of town' hotels as normal drive by 'traditional' customers never reached them. By setting the lowest price on PL, they have increased there business significantly (which still may be only 2-10% of 'online' bookings). If only hotel revenue managers were that smart... In fact, not all pay that much attention to any one individual report. My cousin from the Holiday Inn, she has a 4* Hilton which accepts $30 (less than her price) so any bid pretty much ends up getting upgraded to the 4*. In the $35 - $40 range, there are two participating 3*'s that share the remaining few bids. As the minimum bid for a 4* is set by Priceline's system at $40, that Hilton does really well in the zone essentially cannobolizing the bids because naturally, knowledgable people start off there. As an individual owner, she feels the pinch of setting her price too low BUT the smart ones are area revenue managers of chains who see how even getting $20 a night keeps things moving, staff are employed and look at the 'marginal cost' of the night's stay (essentially nothing). An example of this is .... I believe the corp. name is Mayfair properties in and around New Jersey which sets the prices of their Radissons effectively to win the majority of the bids (in Princeton, Holtsville, Saddle Brook ... their hotels have recently been acquired and renovated and this helps them fill all the empty rooms). Prime which owns the Sheraton Meadowlands NJ, and is the franchisor of Amerisuites is a another perfect example as you can see, all area Amerisuites accept the same low of $33. When the Radisson started coming up again at $37, they dropped their price of the Sheraton to $36. So the PL reports help but only so much. Another interesting tid bit of info is that Marriott hotels and most others must do 3 'phone arounds' every day to all area hotels and find out the avg. rack room rate and occupancy. This list is than faxed to their head office for future pricing decisions. If anyone has any other PL/hotel related info ... I would love to have it as I am trying to finish my thesis on the this very subject!!!