taalhiker Posted April 28, 2003 Report Posted April 28, 2003 Sheraton Suites Columbus Worthington201 Hutchinson Avenue Columbus, Ohio 43235 614-436-0004Check-In Date: Sat, May 24, 2003 Check-Out Date: Sun, May 25, 2003 Your Offer Price: $30.00 (plus $10 bonus money / room)Number of Rooms: 3 Number of Nights: 1 Subtotal: $90.00 Processing Fee ($5.95 per room): $17.85 Local Taxes and Fees: $18.00 Total Charges: $125.85
thereuare Posted April 28, 2003 Report Posted April 28, 2003 Welcome to BetterBidding.Thank you for sharing your winning bid results with us... the time you took to do so is very much appreciated as i'm sure others will benefit from the information. Please use this HOTWIRE and these PRICELINE LINKS: HOTELS, CAR RENTALS, and AIRFARE to begin your travel purchases
WillTravel Posted April 28, 2003 Report Posted April 28, 2003 The tax calculation here is quite interesting. Here is how I understand it.Because the total amount you bid for the 3 nights was $90, Priceline cannot charge you more than 20% of the $90, which is $18, since they promise not to charge you more than 20%. The actual tax rate in Columbus, Ohio is 15.75%, which Priceline would normally apply to the actual price it paid for the room. But given the relatively low room cost and the amount of bonus you got, Priceline cannot charge you 15.75% of whatever price it paid. You can deduce the room price that Priceline paid has to be more than $38/night, so this was an excellent bid and even better with the bonus.Hope that makes sense!
thereuare Posted April 28, 2003 Report Posted April 28, 2003 You can deduce the room price that Priceline paid has to be more than $38/nightWillTravel,I don't understand what you are saying here, although i do agree with your calculation.Priceline bonus money is actually "paid" by Priceline, so dividing the nitely taxes paid by the tax rate: $6 / .1575 = $38.I think that $38 is indeed the price that Priceline paid for the room. Why do you suspect that Priceline's cost has to be more than this? Please use this HOTWIRE and these PRICELINE LINKS: HOTELS, CAR RENTALS, and AIRFARE to begin your travel purchases
WillTravel Posted April 28, 2003 Report Posted April 28, 2003 Priceline caps the amount of taxes they can charge, based on the amount you can bid. It can never exceed 20% of what you bid. It can't include the bonus money in this. In this case, 20% of $90 is $18 exactly.If the price had been $38/night, then Priceline would have charged $17.96 in tax. A small difference, but it seems to prove the point here.
thereuare Posted April 28, 2003 Report Posted April 28, 2003 :) Gotcha now, thanks for explaining that further!(and a good point!) Please use this HOTWIRE and these PRICELINE LINKS: HOTELS, CAR RENTALS, and AIRFARE to begin your travel purchases
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