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I used to code for a hotel chain, and I remember that Priceline had some sort of weird legacy deal that made them essentially the only OTA (online travel agent)

by werber 9y ago

I used to code for a hotel chain, and I remember that Priceline had some sort of weird legacy deal that made them essentially the only OTA (online travel agent) that was able to undercut the hotel's lowest price.

lotsofpulp 9y ago
It's not exclusive to Priceline, and it's called Opaque pricing: https://en.wikipedia.org/wiki/Opaque_travel_inventory https://en.wikipedia.org/wiki/Opaque_travel_inventory Basically, in exchange for a lower price, the hotel guest gives up their right to choose which hotel they want to stay at. And for the hotel, they get to sell lower priced rooms without advertising lower prices, enabling them to engage in price discrimination so they don't lose out on the people willing to pay them more. However, I find that the type of hotel guest Opaque pricing attracts is not a desirable hotel guest anyway, so most decent hotels don't participate. Or if they do, only when demand is very low and they're sitting empty.
- planteen 9y ago
  What "kind of guest" does this attract? I sometimes do this, especially in ski towns. I also sometimes negotiate at rural hotels to get a fade rate. Do hotels hate me?
  - giarc 9y ago
    Not the commentor but I imagine those that are willing to find out the name of the hotel after they pay (to save some money) are not the type of customer that orders room service, get's spa treatments etc etc. Basically the opaque booking customer doesn't result in upsells during their stay.
  - DonHopkins 9y ago
    Not rich ones like Shatner.
  - lotsofpulp 9y ago
    The big problem is it attracts hookers/pimps/drug dealers, and a lesser problem is that it attracts price conscious customers, but that's fine since if you are opening up that channel for customers, then you need their business. But it's not worth it if you're also getting the aforementioned problem parties. It would be unreasonable for a hotel to hate you just for asking for a negotiated rate, but hotels (and any business) will hate you for being annoying, especially when they bring up stupid reasons like "well I paid $x in nowhere, kansas"....
- werber 9y ago
  Good to know, but I know they were on the other sites that do that, and specifically mentioned Priceline as having some sort of contract that allowed them to undercut them, and I can't find anything online to back that up.

by werber 9y ago

lotsofpulp 9y ago

It's not exclusive to Priceline, and it's called Opaque pricing: https://en.wikipedia.org/wiki/Opaque_travel_inventory https://en.wikipedia.org/wiki/Opaque_travel_inventory Basically, in exchange for a lower price, the hotel guest gives up their right to choose which hotel they want to stay at. And for the hotel, they get to sell lower priced rooms without advertising lower prices, enabling them to engage in price discrimination so they don't lose out on the people willing to pay them more. However, I find that the type of hotel guest Opaque pricing attracts is not a desirable hotel guest anyway, so most decent hotels don't participate. Or if they do, only when demand is very low and they're sitting empty.

planteen 9y ago
What "kind of guest" does this attract? I sometimes do this, especially in ski towns. I also sometimes negotiate at rural hotels to get a fade rate. Do hotels hate me?
- giarc 9y ago
  Not the commentor but I imagine those that are willing to find out the name of the hotel after they pay (to save some money) are not the type of customer that orders room service, get's spa treatments etc etc. Basically the opaque booking customer doesn't result in upsells during their stay.
- DonHopkins 9y ago
  Not rich ones like Shatner.
- lotsofpulp 9y ago
  The big problem is it attracts hookers/pimps/drug dealers, and a lesser problem is that it attracts price conscious customers, but that's fine since if you are opening up that channel for customers, then you need their business. But it's not worth it if you're also getting the aforementioned problem parties. It would be unreasonable for a hotel to hate you just for asking for a negotiated rate, but hotels (and any business) will hate you for being annoying, especially when they bring up stupid reasons like "well I paid $x in nowhere, kansas"....
werber 9y ago
Good to know, but I know they were on the other sites that do that, and specifically mentioned Priceline as having some sort of contract that allowed them to undercut them, and I can't find anything online to back that up.