Andrew Sullivan Gets Mad at Priceline

Andrew Sullivan had a very bad hotel experience with Priceline. He delayed his trip a day and the hotel wouldn’t let him start his stay when he arrived. He lost all his money. Frustrating, but his analysis of Priceline’s business model is just wrong:

    the profit margin is obviously highly correlated with suckers and incompetents like me.

Priceline doesn’t make more or less depending on whether someone shows up for their reservation. Priceline makes money from their booking fee, from a commission charged to the hotel, and from any overbid (the difference between a successful bid and the highest applicable rate that bid allows Priceline to book). (Link via Spot On.)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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