Accepted Bid Less than Priceline Cost

[nvherron]

I have a new one for you all. I just stayed at the Hilton Santa Clara on Saturday night. I won the room for $45, which I have done 3 times in the past at this hotel. I consider it a very good deal. :o

At check-in, I gave them my Hilton HHonors card, which I always do. Sometimes I get a comment back saying I cannot get HHonors credits for "this" stay. But the guy took it and said no problem. I occasionally get lucky on Priceline stays and get credit, so I always try. Or sometimes I get credit for incidentals, so I give it every single time. Other times, it's good for an upgrade.

Anyway, the stay went like normal, but at check out time yesterday they gave me two folios...one for my incidentals, and the other was for my room. They are not supposed to give you the room folio on a PL stay...in fact I've only had this happen to me once before. The other time it happened, the PL rate was $2 less than what I bid. So I felt pretty good about my bidding.

But this time, the Priceline rate was $50! It was $5 more than my bid. :) It said on the folio, directbill to Priceline.com. However, it had my HHonors information to give me credit (so I'm happy about that). I can't come up with any ideas as to why, other than maybe the hotel messed up and PL is going to be overbilled for my stay, or PL made an error with my bid and is honoring my rate. Has anyone else had this happen before where Priceline paid more than you bid? :)

[WillTravel]

I suspect I've had this happen, but can't recall details, and I've certainly read of other cases. You're at a US hotel, so I don't think it's a matter of tax being included, as it tends to be at European hotels. Maybe Priceline's service fee that is lumped in with the taxes gives them the margin to do this?

[bbbb]

Priceline still made $ off of the service fees.

[nvherron]

They did make some money. Break Down as follows:

Hilton Folio:

Guest Room $50.00

Room Tax $4.75

Calif Tourism Tax $0.02

District Improvement Fee $1.00

TOTAL: $55.77

My Priceline Bid:

Winning Bid $45.00

Taxes & Fees: $12.74

TOTAL: $57.74

So Priceline paid $5.77 in taxes and fees on my purchase, but I paid $12.74 in my winning bid, so even though they paid $5 more for my room then I bid, they still appear to be ahead by just under two bucks. So I guess two bucks profit was good enough for them on my bid. I'm not complaining, though!