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The Practical Nomad blog: Priceline.com will now name its price -- sometimes


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"Edward Hasbrouck's blog « Focus on competition at PhoCusWright conference Blog Home Page CAPPS-II will require 3 new directives » Wednesday, 10 December 2003 Priceline.com will now name its price -- sometimes Priceline.com's US $100M startup blitz of television and other advertising in 1998 was the first time most people in the USA had heard of the discounts available on airline tickets through consolidators . Even five years later, Priceline.com remains the name-recognition (if not customer-service or customer-satisfaction) leader and largest-volume retailer in the USA of consolidator tickets. So it's no wonder that the general attributes of consolidators (travel agencies that have agreements with airlines to pay less than published prices for tickets, enabling them to mark tickets up for resale and still sell them for less than the prices offered directly by airlines) are often lumped together with the peculiarities of Priceline.com's business model in the public conception of what a consolidator is. Priceline.com does things differently from most retail consolidators in two ways: Priceline.com sells tickets on a so-called "opaque" basis: Priceline.com buys you a ticket on whichever airline and flights it can get most cheaply, so as to maximize its profit (you pay the same amount regardless), and only tells you the airline and a schedule after you have committed to buy. Some people think all consolidators work this way, but that's not true: in most cases (and in all cases except on automated Web sites), a consolidator's unwillingness to identify the airline until after they've taken your money is a red flag for probable fraud. Most consolidator ticket sellers aren't allowed to advertise names of airlines or list them on their Web sites, but will provide them with your confirmed itinerary before you have to pay. When Priceline.com started selling tickets, there was only on"
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