My husband and I used Priceline.com to reserve a hotel room at the popular Star Inn (Congress Hall affiliate) for a busy October weekend (Cape May Wine Festival). Priceline.com did offer a $200/night rate that appeared to be $40 cheaper than the $240/night charge that the hotel itself posted. However, when we checked out, the hotel gave us the invoice that showed that Priceline, on its corporate VISA card account, had actually paid only $160/night for the room yet charged us $200, which about a 30% markup. I called Priceline and they said the hotel should never have given me a copy of that invoice, that Priceline buys rooms at a bulk rate and essentially resells them. Nowhere is this practice disclosed. In and of itself the practice probably is not illegal, but the lack of disclosure may very well be.
As stated, my objection to this practice is in the lack of disclosure. Had I known of the markup attendant to their business model, I could have elected to book directly through the hotel and try for a better rate myself instead of paying Priceline the $40. Priceline has to make money somehow, but falsely advertising that they give you the lowest rates without explaining how they get their rates in my view is consumer fraud. I am investigating whether a consumer class action can be instituted against Priceline.com and would welcome any feedback from anyone with knowledge.
Robert
Irvine,#2Consumer Comment
Sat, October 24, 2009
Are you really that clueless.
They buy rooms at the "wholesale" rate and resell them to you. How in the world do you think they make..OMG a profit. Are you saying that you really thought that they sold the room to you at the same price they sold it to you for? I mean you saved $40 by going though them, they made $40 by selling it to you. So where is the Ripoff?
Oh..I see you think that every business should tell you exactly how much they are making on the sale so that you can go to the source and work a better deal. Then why don't you test this theory out. Go to a local store an when you want to buy a shirt ask the manager how much they paid for the shirt. Now say that they actually tell you. You would then have to go to the "source" to try and work out your deal. Now the manufacturer would probably be more than happy to give you the same deal, but of course they will want you to by the same 1000 shirts that the store did.
But if the manager does not tell you, then you perhaps should do the same thing with that store. That is write a report on them as well as threaten a "Class Action" lawsuit...Actually please don't.
Molly
New Jersey,#3Author of original report
Sat, October 24, 2009
The hotel is in NJ, not CT. CT is the corporate address of Priceline.