Priceline roomsRoom price list
On my Priceline room night, the real amount that Priceline was paying was inadvertently passed on to me. These are usually very narrowly kept information, so it is great to get a seldom insight into the dates. Now, a few words about Priceline, just so you know what I'm on about and why this is something weird.
Priceeline is selling rooms through different canals. Like any other tour operator, Priceline will receive a fee for processing the booking. You can also opt for "express offers" that allow you to pick a property by rate, date, area, and asterisk, displaying the name of the property after selecting a particular feat.
However, the best offerings in the hospitality industry are Priceline's "name your own price" offerings. They work similarly to "express offers", but for a room and within the area you can select whether you want to take your deal or not. It' a questionable policy, but almost everyone does it for rooms.
If you use the "name your own price" approach, I have found that the real amount offered to the property is not the same as you offered on Priceline. It' actually a lower cost. In two cases I was able to obtain information to prove this (although it was accidentally provided to me).
Priceline bagged about $10 per room per evening for two different Bay Area rooms in different houses on different times, rejecting offers that would have resulted in lower profits. The first Priceline room I' ve reserved, my offer was $60. I was billed for $76.21 after my bill was filled with tax and tolls.
They made a mistake and unveiled the cost they charged Priceline. Well, I could see that Priceline actually did pay $65. 88 for the room. Your winnings in this room were $10.33. It' reminds you that this was still one of the hotels that sold its lowest priced rooms for $129 per room plus taxes, so the cost saving was still considerable.
It was almost empty and had to really resell the room. Considering the structure of my offer, Priceline could have given me the room for $50 and $55. to $60, which guaranteed them a winnings margin. With this, Priceline showed that she would have been prepared to let the space portfolio go to waste at the last moment instead of diminishing its profits.
The results for the second Priceline room nights I book were almost the same. Priceline was actually charged $61.56 by the hospital. So in this case, Priceline was $8. 08 and I' m offering for the same room-in the same area at $50, which would have turned $3. 08 Gross Gain.
So how much is the minimal pre-tax profits Priceline accepts for an overnight stay in a separate room? Priceline must finally cover all the cost of the room reservation and the handling of your payment cardhold. It' still a little higher than I thought, and locating this information encourages me not to even offer in $5 steps.
A part of the value promise for hotel owners in the Priceline listings is that it is a good way to close down last minutes stocks that are not sold, albeit at a high rebate. However, Priceline has shown its readiness to let stocks go to waste instead of selling them at an unacceptable low mark.
It would be interesting to know whether Priceline's agreements oblige them to take break-even offers to help their affiliates offload outdated room stocks and how much this actually is (taking into account Priceline's operational costs). Perhaps you ask yourself at this point: "How did this information leach out? I also hope that more information will still be leaking, so that I have more clues to make better offers.