Priceline Hotel: 3* Newport (Goat Island-Newport-Newport Beach) Hotel Viking

[arbitrageur]

I'm trying to snag a 3* for 1 night on 3/17 in Newport/Newport Beach. Because there have been very few winning bids posted in this area, I'm not sure where to start and am requesting bidding assistance. I'd like to keep my max bid at $80, but I don't know if that's realistic.

The posted rates are as follows:

1. Hyatt - $169

2. Marriott - $155

3. Viking - $189

4. The Newport - $139

Thanks.

[thenewbie]

I don't know if you've checked hotwire, but it is showing a 3.5* hotel in the Newport/Middletown area with the following amenities for $57. Restaurant, Pool, Fitness Center, Business Center. Judging by the "retail" price (matches Orbitz) and the amenities, I believe it could be the Hotel Viking.

With this information, and the trip in more than a month, I'd recommend bidding somewhere between $40-45 on priceline. You have time to wait the 72 hours to bid higher or you could jump on the hotwire deal if you are unsuccessful.

[thereuare]

You do have two re-bid zones when bidding 3* in this area, so you could:

Select 3* Newport Beach

Bid $40, if rejected add re-bid zone1...

Bid $45, if rejected close browser and re-access priceline however you did previously

Select 3* Newport Beach and re-bid zone2...

Bid $50, if rejected add re-bid zone1...

Bid $55, if rejected take the Hotwire offer.

[arbitrageur]

Since I'm travelling in the off-season, as the date of my stay approaches, would the hotwire offer generally increase, decrease, or stay the same? I'll bid on the strategy above later today and tell you how it goes.

[thereuare]

Rates are based upon expected demand, so 'low-season' is likely already factored into the pricing.

How actual demand begins to come in relative to expected demand will affect rates... could be up or down (depending upon whether actual demand is weaker or stronger than expected). However, often when the opaque suppliers are given inventory, it is inventory that the hotel doesn't expect to otherwise sell, so they are often already priced at "distressed" levels and not likely too go too much (if at all). This is a general statement and can't be applied to all situations, but eventually a hotel reaches a point of diminishing returns... how much less than $50-$60 could a 3* hotel charge and still make money? While it does cost money to have a room sit vacant, it also costs money to fill a room: electricity, water, housekeeping, wear and tear on the room, washing towels and linen (as well as their own wear and tear), etc, etc.

[arbitrageur]

Got the Viking for $45!!! You guys rock.

Check-In Date: Friday, March 17, 2006

Check-Out Date: Saturday, March 18, 2006

Hotel Name: Hotel Viking

One Bellevue Avenue

Newport, Rhode Island 02840

401-847-3300

Your Offer Price: $45.00

Number of Rooms: 1

Number of Nights: 1

Subtotal: $45.00

Taxes and Service Fees: $13.33

Total Charges: $58.33

Placed through the savingsbarn link.

[thereuare]

GREAT!!

Congratulations on your success and we're happy to see you thrilled with the results.

Thanks you for using the SavingsBarn.com links to start your bidding.

Have a great stay!

[arbitrageur]

In general then, would it be safe to assume that as long as your posted rates stayed unchanged, and your opaque (hotwire) sites stayed unchanged, then you could probably bottom-fish for a lower rate bidding on priceline until close to your needed date? But if you started to see the opaque sites and posted rate sites increasing, it might be best to start increasing your max priceline bid and/or using a backup plan?

When evaluating the starting bid for a hotel, do you use a percentage from the lowest posted rate, or do you try to undercut the level you're getting from an opaque site?

[thereuare]

You can't do as you describe above, because there is no lag factor in prices... once the hotel rates, so does your 'back-up' Hotwire rate, and then you're left with nothing.

There are too many instances on the board of people trying to be 'smart' savings $4-$5 by continuing their lowball bids... then one day the hotel shows sold-out, a Hotwire alternative disappears, and then they're stuck paying much, much, more.

[thenewbie]

When evaluating the starting bid for a hotel, do you use a percentage from the lowest posted rate, or do you try to undercut the level you're getting from an opaque site?

Congrats on your win. Although I wasn't fully awake when I first posed (hence, no rebid areas listed in my original post) I knew you would likely have success around $45 judging from previous wins elsewhere.

As thereuare said, you don't want to gamble with your bids. If I had been fully awake :) , I would have suggested a bidding strategy to increase your bid all in one day's attempt. This would allow you to work up towards your back-up for that day. Hotel prices change frequently, so unless you have a cancellable reservation, you really don't have a true "back-up." The hotwire rate was more of a starting point to determine where to begin bidding. But in this case, I don't think Newport is a Spring Break destination, so rates could possibly stay this low for a few days.

[dahammer]

just saw an ad in USA today for the Viking, they are running a special for $169 including breakfast for two. I think with a $45 bid you can take care of breakfast on your own!! :)