Priceline.com

Last updated
Priceline.com
Type Subsidiary
Industry Online travel agency
Founded1997;27 years ago (1997), by Jay S. Walker [1]
(online 1998)
Headquarters
Norwalk, Connecticut
,
United States
Key people
Brett Keller (Chief executive officer) [2]
Parent Booking Holdings
Website www.priceline.com

Priceline.com is an online travel agency for finding discount rates for travel-related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel services from its suppliers to its clients. Priceline.com is headquartered in Norwalk, Connecticut, United States and is wholly owned by Booking Holdings, which also owns Kayak.com, Booking.com and other sites. The company was founded in 1997. It operates in more than 200 countries and territories around the world and has partnerships with over 400 airlines and 300,000 hotels. Users can search for travel deals and discounts on the website, and in the past also offered the "Name Your Own Price" feature to bid on hotel rooms and flights.

Contents

History

Priceline was founded by Jay S. Walker, who left the company in 2000, [3] by which time Richard S. Braddock, Citicorp's #2, had come aboard as chief executive. [4] Braddock left in 2004, [5] having helped take the company public in 1999. [6]

Entrepreneur Michael Loeb assisted in the "creation and early funding". [7]

Priceline first became known for its Name Your Own Price system, where travelers would name their price for airline tickets, hotel rooms, car rentals, and vacation packages. While the purchaser can select a general location, service level, and price. The sales are for opaque travel inventory; details are disclosed only after the transaction is complete with no possibility of cancellation.

Priceline's profit from the proceeds is the difference between the price suggested by a customer and the one charged by the service provider. It has also added a more traditional model, called Express Deals, where travelers have presented prices and a geographical perimeter within which the hotel will be located but are not told the name of the establishment. [8]

Priceline offers a tool named Pricebreakers for Hotel bookings. It claims that the price of the hotels are up to 50% off retail. It is somewhat similar to Express Deal but instead of showing the geographical location within a perimeter, it provides the names of 3 hotels, and one of the hotels will be allocated after the payment is done.

Travelers can still choose to name their price for airline tickets, hotel rooms, and rental cars. The number of airlines, hotels and car rental company participants in the name your own price program has increased as these suppliers utilize this opaque market Priceline created to sell their perishable inventory without lowering prices through other traditional sales channels. Priceline also sells discounted cruises, as well as tours and attractions.

In 2002, Priceline licensed its Name Your Own Price travel system to eBay. [9]

In November 2007, Priceline “permanently” eliminated all booking fees on published airfares.

In April 2014, Priceline.com Incorporated changed its name to "The Priceline Group Inc." The corporate name change was intended to create a clear delineation between the global Priceline business. [10] Now, Priceline.com is one of six primary brands of Booking Holdings. [11]

Priceline announced in May 2015 that it would invest an additional $250 million in Chinese online travel company Ctrip to tap the fast-growing China market. [12]

Priceline officially ended its Name Your Own Price deals for flight bookings in 2016, [13] rental cars in 2018 [14] and hotels in 2020. [15]

Other services

Priceline.com experimented with selling gasoline and groceries under the Name Your Own Price model in 2000, at the height of the dot-com bubble, through a partially owned affiliate, WebHouse Club.

Priceline got into the online auction business with Priceline Yard Sales, where individuals would use the Priceline system to haggle for various second-hand items and trade them in person.

Priceline sold long distance telephone service and automobiles under the Name Your Own Price model.

These experiments were terminated in 2002.

Another experiment, the Name Your Own Rate system for home loans, continues under a license with EverBank.

In 2016, Brett Keller was named CEO of the priceline.com brand. [16]

Spokespeople

William Shatner

In 1997, [17] William Shatner became the spokesman for Priceline.com, agreeing to do the spots in exchange for stock in the company. [18] Shatner allegedly sold the stock before the burst of the dot-com bubble, making a $600 million profit; however, this number was disputed as an urban legend by CEO Jeffery Boyd. [19] [20] An early ad campaign featuring Shatner had him belt out popular songs in spoken word, in the style of his album, The Transformed Man . He was "replaced" in 2004 by his Star Trek co-star, Leonard Nimoy. Shatner still appeared in spots for Priceline, running into Nimoy as his replacement. When that campaign ended, Shatner again became Priceline's sole spokesperson.

In 2007, an ad campaign by Butler, Shine, Stern & Partners had Shatner take on the role of the Priceline Negotiator. In commercials that began airing January 22, 2012, Shatner's Negotiator character apparently dies as a bus falls off a bridge and explodes. [21] Subsequent ads have featured his "spirit," still advertising Priceline.com from beyond the grave. In August 2012, Shatner was brought back in a commercial located on a stormy, cloudy beach, parodying the end of the film Point Break . A man, apparently an investigator, stands next to Shatner. Shatner is holding a wooden surfboard, wearing a suit with shortened pants and pitching the new way of booking a hotel. He states that surfing is his life now and "we'll see where the waves take me. Sayonara!" and goes charging into the waves.

Priceline has been parodied on The Tonight Show with Jay Leno and in multiple Saturday Night Live skits. In a September 2008 SNL skit, during the opening monologue by Olympian Michael Phelps, Shatner rose from the audience to give Phelps tips on product endorsements. [22]

Theresa Caputo

In June 2012, Theresa Caputo, star of the television show Long Island Medium, appeared in a commercial for Priceline.com, in which she portrayed herself "connecting" with the late Priceline Negotiator character previously played by William Shatner. [23] However, this commercial has sparked controversy, since the commercial appears to make light of the Native American belief of smudging.

JREF President DJ Grothe released an open letter calling out Priceline.com for endorsing Caputo, stating, "It is difficult to watch the show and not feel heartbroken for those who are desperate to hear from the departed... and even more so if they are being manipulated by a charlatan." Grothe urges Priceline.com to "invite... your new representative" to take the James Randi One Million Dollar Paranormal Challenge and prove her credentials. [24]

Kaley Cuoco

In January 2013, Kaley Cuoco from the sitcom The Big Bang Theory joined William Shatner as his fictitious daughter in Priceline.com commercials. [25]

Criticisms

Priceline does not include resort fee amounts in the bidding. Therefore, it's possible to win a bid for a hotel and then be forced to pay mandatory resort fees (for example, often $25 per night for resort hotels in Las Vegas). [26] Priceline continues this practice despite a 2012 warning to the industry from the Federal Trade Commission (FTC). [27] The FTC continues to state the following regarding how hotels and third parties should disclose such fees:

Listing the "resort fee" near the quoted price or in the fine print—or referring to other fees that "may apply"—isn't good enough. [28]

Priceline is one of the companies accused of using the services of Wiki-PR, a public relations firm specialized in editing of Wikipedia that has been accused of subverting Wikipedia content for business interest. [29] [30]

See also

Related Research Articles

<span class="mw-page-title-main">Name your own price</span> Pricing strategy

Name your own price (NYOP) is a pricing strategy under which buyers make a suggestion for a product’s price and the transaction occurs only if a seller accepts this quoted price. What happens is that the seller waits for a potential buyer's offer and can then either accept or reject that 'named price' that the user had offered. As the Internet is continuously being developed and online marketplaces are becoming increasingly more popular, consumers have more choices in terms of product pricing. Popularized by the reverse auction pioneer, Priceline.com, such pricing strategy asks consumers to 'name their own price' for various products and services like air tickets, hotels, rental cars, etc. The first bid a consumer places and the subsequent bid increments express the consumer's willingness or unwillingness to haggle. "The economic argument is that the number of bids a consumer submits to win a product in a NYOP auction is determined by the bidder’s intention to trade off higher expected savings from haggling against the associated frictional costs". NYOP retailers do not post a price for their products, and the final price of the transaction is only determined via a "reverse auction process", and these are key features that distinguish hotels and travel intermediaries from NYOP retailers. Similarly, LetYouKnow, Inc. pioneered the application of its own patented matching method within confines of the reverse auction process, whereby consumers name their own price for new vehicles.

Travelocity.com is an online travel agency owned by Expedia Group. It has 12.4 million monthly unique visitors, making it the third most popular website owned by Expedia Group, after Expedia.com and Hotels.com.

Online hotel reservations are a popular method for booking hotel rooms. Travellers can book rooms on a computer by using online security to protect their privacy and financial information, and by using several online travel agents to compare prices and facilities at different hotels.

<span class="mw-page-title-main">Vacation rental</span> Furnished apartment for short-term stays

A vacation rental is the renting out of a furnished apartment, house, or professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel. The term vacation rental is mainly used in the US. Other terms used are self-catering rentals, holiday homes, holiday lets, cottage holidays and gites.

<span class="mw-page-title-main">Amadeus IT Group</span> Spanish travel technology company

Amadeus IT Group, S.A. is a major Spanish multinational technology company that provides software solutions for the global travel and tourism industry. It is the world's leading provider of travel technology that focus on developing software for airlines, hotels, travel agencies, and other travel-related businesses to enhance their operations and customer experiences.

Cheapflights is a travel fare metasearch engine. The website is part of the Kayak.com subsidiary of Booking Holdings.

<span class="mw-page-title-main">Kayak (company)</span> Travel metasearch engine owned and operated by Booking Holdings

Kayak is a metasearch engine owned and operated by Booking Holdings.

Hotwire is a travel website that offers airline tickets, hotel rooms, rental cars, and vacation packages. It operates by selling off unsold travel inventory at discounted prices. The company is headquartered in San Francisco, CA, Hotwire, Inc. is an operating company of the Expedia Group, which also operates the website ClassicVacations, Expedia, Hotels.com, Orbitz, Travelocity and Egencia.

The intention economy is an approach to viewing markets and economies focusing on buyers as a scarce commodity. Customers' intention to buy drives the production of goods to meet their specific needs. It is also the title of Doc Searls book: The Intention Economy: When Customers Take Charge published in May, 2012.

An opaque inventory is the market of selling unsold travel inventory at a discounted price. The inventory is called "opaque" because the specific suppliers remain hidden until after the purchase has been completed. This is done to prevent sales of unsold inventory from cannibalizing full-price retail sales. According to TravelClick, the opaque channel accounted for 6% of all hotel reservations for major brands in 2012, up 2% from 2010.

<span class="mw-page-title-main">Agoda</span> Thailand online travel agency

Agoda.com is an online travel agency catering primarily to consumers in the Asia-Pacific region, with headquarters in Singapore and operations in Bangkok, Thailand. Agoda facilitates reservations for lodging, flights, ground transportation, and activities. It is a subsidiary of Booking Holdings.

Corporate travel management is the function of managing a company’s strategic approach to travel, the negotiations with all vendors, day-to-day operation of the corporate travel program, traveler safety and security, credit-card management and travel and expenses ('T&E') data management.

<span class="mw-page-title-main">Booking.com</span> Dutch online travel agency

Booking.com is one of the largest online travel agencies. It is headquartered in Amsterdam, and is a subsidiary of Booking Holdings. In 2022, the company's mobile app was the most downloaded mobile app in the travel agency category. As of December 31, 2022, Booking.com offered lodging reservation services for approximately 2.7 million properties, including 400,000 hotels, motels, and resorts and 2.3 million homes, apartments in over 220 countries and in over 40 languages. It also offers flights in 54 markets and tours and activities in more than 1,200 cities.

HomeAway was a vacation rental marketplace. It operated through 50 websites in 23 languages through which it offered rentals of cabins, condos, castles, villas, barns, and farmhouses.

Trip.com Group Limited is a multinational travel service conglomerate headquartered in Shanghai, China. Founded in 1999, the company owns and operates several travel fare aggregators and travel fare metasearch engines including namesake and flagship Trip.com, Skyscanner, Qunar, Travix, and MakeMyTrip. It operates websites in about 40 languages and 200 countries. Trip.com Group is currently the largest online travel agency in China and one of the largest travel service providers in the world.

A resort fee, also called a facility fee, a destination fee, an amenity fee, an urban fee, or a resort charge, or a hidden hotel booking fee is an additional fee that a guest is charged by an accommodation provider, usually calculated on a per day basis, in addition to a base room rate.

<span class="mw-page-title-main">Hurb</span> Brazilian online travel agency

Hurb Founded in January, 2011 by João Ricardo Mendes, Hurb was valued at R$ 2.6 billion or approximately US$590 million when Booking Holdings purchased a small percentage for US$60 million in 2016. Its headquarters are in the city of Rio de Janeiro, Porto and Montreal.

Trip.com is a subsidiary international online travel agency headquartered in Singapore. It is owned by Trip.com Group, one of the world's largest online travel agencies with over 400 million users worldwide, and also the parent of Skyscanner.

Booking Holdings Inc. is an American travel technology company incorporated under Delaware General Corporation Law and based in Norwalk, Connecticut, that owns and operates several travel fare aggregators and travel fare metasearch engines including namesake and flagship Booking.com, Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars.com, Momondo, and OpenTable. It operates websites in about 40 languages and 200 countries.

Also known as partitioned pricing or shrouded pricing, drip pricing is a technique used by online retailers of goods and services whereby a headline price is advertised at the beginning of the purchase process, following which additional fees, taxes or charges, which may be unavoidable, are then incrementally disclosed or "dripped". The objective of drip pricing is to gain a consumer's interest in a misleadingly low headline price without the true final price being disclosed until the consumer has invested time and effort in the purchase process and made a decision to purchase. Naïve consumers will purchase based on headline price and sophisticated consumers will consider total cost when comparing offers. Drip pricing can distort competition because it can make it difficult for businesses with more transparent pricing practices to compete on a level playing field.

References

  1. ↑ Nusca, Andrew (April 26, 2017). "The Man Who Told Leisure Travelers to 'Name Your Price' Would Like a Word With Business Travelers". Fortune .
  2. ↑ "Priceline: Executive Team". Priceline.
  3. ↑ Post, Tom (September 18, 2012). "Priceline.com Cofounder Jay Walker On Turning The Art Of Giving Into A Systematic Business". Forbes .
  4. ↑ Timothy L. O'Brien (September 19, 1999). "In my Duffel Bag: Richard S. Braddock". The New York Times .
  5. ↑ "Braddock Resigns As the Chairman Of Priceline.com". The Wall Street Journal . April 9, 2004.
  6. ↑ "Richard Braddock".
  7. ↑ Michael, Loeb. "Michael Loeb Biography".
  8. ↑ Gardner, Terry (June 27, 2012). "Priceline introduces Express Deals for hotels" . Los Angeles Times .
  9. ↑ "Priceline and eBay Team Up to Provide Enhanced Travel Services | Booking Holdings". ir.bookingholdings.com. Retrieved 2020-11-28.
  10. ↑ "Priceline.com Incorporated Announces Corporate Name Change" (Press release). PR Newswire. April 1, 2014.
  11. ↑ "Booking Holdings". Booking Holdings.
  12. ↑ Ajmera, Ankit (26 May 2015). "Priceline to invest additional $250 million in China's Ctrip.com". Reuters .
  13. ↑ "Why Did Priceline Discontinue Its 'Name Your Own Price' Option For Flight Bookings? -". Trefis. Retrieved 2021-10-04.
  14. ↑ Trejos, Nancy. "Priceline ends 'Name Your Own Price' deals for rental cars". USA TODAY. Retrieved 2021-10-04.
  15. ↑ "How to Use Priceline's 'Name Your Own Price'- Simplified". Going Awesome Places. 2012-11-12. Retrieved 2021-10-04.
  16. ↑ "CORRECTED-BRIEF-Priceline Group appoints Brett Keller as CEO of Priceline.com". Reuters . November 7, 2016.
  17. ↑ "William Shatner Takes Center Stage In New Priceline Negotiator Advertising Campaign" (Press release). Hospitality Net. 17 January 2007.
  18. ↑ Carlson, Nicholas (May 4, 2010). "William Shatner Has Made $600 Million Shilling Priceline.com". Business Insider .
  19. ↑ Belvedere, Matthew J. (November 8, 2013). "No megabucks for Shatner on Priceline stock: CEO". CNBC .
  20. ↑ BERR, JONATHAN (May 5, 2010). "William Shatner Lives Long and Prospers -- but Did He Really Make $600 Million?". Aol.com .
  21. ↑ Elber, Lynn (January 19, 2012). "William Shatner 'dies' again. Bye-bye Priceline Negotiator". Christian Science Monitor. Associated Press.
  22. ↑ "SNL peason premiere fails to live up to expectations". The Observer. September 15, 2008. Retrieved 2021-02-08.
  23. ↑ "TV's Long Island Medium Theresa Caputo Channels The Dearly Departed Negotiator In New Priceline.com TV Spot (Press Release)". PR Newswire. 25 June 2012. Retrieved 2020-04-29.
  24. ↑ Grothe, DJ (August 13, 2012). "Priceline.com: Will You Prove Your Spokesperson Worthy for a Million Dollars?". HuffPost .
  25. ↑ "Kaley Cuoco joins Shatner in Priceline ads". USA Today . January 9, 2013.
  26. ↑ "Name Your Price, Then Get Ready for the Fees". The New York Times . 11 September 2011.
  27. ↑ Hunter, Marnie. "FTC warns hotels about 'resort fees'". CNN .
  28. ↑ "Travel Tips - Consumer Information". Federal Trade Commission.
  29. ↑ Robbins, Martin (October 19, 2013). "Is Wikipedia for Sale?". Vice . Archived from the original on October 19, 2013.
  30. ↑ Arthur, Charles (November 21, 2013). "Wikipedia sends cease-and-desist letter to PR firm offering paid edits to site". The Guardian . London. Among companies whose entries are said to have been edited by the company are those for Priceline and the communications company Viacom
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.