Questions: Bid Price and Hotel Quality

[ezsampat]

Questions:

In a given location and specific star rating (say 3*), if there were multiple hotels in that star rating, then how does PriceLine determine which hotel the bidder will get?

If it is bid price based, then is the price difference reflective of quality within that star rating?

Is it better to bid slightly higher to get better quality hotel in a given star category?

Thx.

[Colfax]

Let's say there are two 3* hotels in a zone. Hotel A gives Priceline a rate of $50, and 3* Hotel B gives Priceline a rate of $60.

Bid $49 or less and you get nothing.

Bid $50-$59 and you win Hotel A.

Bid $60+ and you win Hotel B.

Bidding higher doesn't insure you'll get a better quality hotel within the class. The $50 hotel might be a better hotel than the $60 hotel. The hotels set their own Priceline rates.

[rayq]

Even though you bid $60+, can't they also give you Hotel A to maximize their profit until they sell out all rooms assigned to Priceline in Hotel A? I wish they give me the Westin Bayshore Vancouver instead of Hyatt Regency Vancouver for 2 night stay in 7/30 - 7/31. I got the rooms for $70/night.

[thereuare]

can't they also give you Hotel A to maximize their profit until they sell out all rooms assigned to Priceline in Hotel A?

This would go against their agreement with the hotels.

[Frank S]

This would go against their agreement with the hotels.

How does the Priceline agreement with the hotels work. I assumed that if you bid on a say a 3* that Pricleine whould give you a 3* property where they could maximize their profit.