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.
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