Financial Fellow

Written by J.P. Wicklein

     I just booked a long weekend in Las Vegas.  After an exhaustive search for the best prices on Hotels.com, Expedia, Travelocity, and Orbitz I decided to name my own price with Priceline.  Through Priceline I wound up getting the Wynn Hotel for $120 per night (Thursday thru Saturday).  If I would’ve booked the Wynn, without naming my own price, it would’ve run me $205 per night on any of the online travel sites (Expedia, Hotels.com, Travelocity, etc…).  Needless to say I was pretty happy with the deal I got!

How naming your own price on hotels works

     When visiting Priceline you’ll have the option to name your own price on flights, hotels, or car rentals.  (I chose to use Priceline for the hotel but I booked my flight directly through Southwest.)  Once you visit Priceline, click on “name your own price” and enter the city you’re visiting along with the dates of your stay.  Next, you’ll select a geographic area of hotels to bid on (most cities are divided into several areas) and select a hotel star level.  Then, you’ll name the price you’re willing to pay for your stay. 

     Once you’ve entered a bid you’ll need to provide your credit card information.  Priceline will automatically charge your credit card if your bid is accepted by a hotel that meets your criteria (geographic area and star level).  By naming your own price you can save up to 50% on hotel rooms! 

The strategy to naming your own price on hotels

     Since you cannot pick the specific hotel you want, or know the lowest price that will be accepted, there’s some strategy to ensure that you’ll come away with the type of hotel you want at the lowest possible price.  Here are some tips:

·         Size up the hotels in your desired star level.  Take a close look at the hotels listed in the star level you’d like to book and find the least attractive one.  If you’re okay with winding up at that hotel then you’ve picked the right star level. 

·         Lowball them.  Priceline states you can save up to 50% off by naming your own price.  To play it safe my initial bid is typically half the cost of the cheapest hotel in the star level I’m bidding on.  (Priceline also guides you by providing the median retail price for the hotel star level in the area you’re bidding on.)

·         If your initial bid is not accepted you have three options:

1.     Change the geographic area and re-bid.

2.     Change the star level and re-bid.

3.     Wait 24 hours, then re-bid with the same geographic area and star level.  Or, you can try again immediately using a different name and credit card (works well for a traveling couple). 

What about flights and rental cars?

     There are two major drawbacks to booking a flight through Priceline:  1) You could wind up with a layover and 2) Your flight can depart anytime from 6am to 10pm on the day you choose.  (The airline that accepts your bid will choose your flights.)  If you’re booking a long weekend to Vegas, like I did, it’s probably not worth risking bad flight times.  On the other hand if you don’t care what time of day your flights are, or can deal with a layover, you may want to name your own price and save up to 40%.  

     I don’t have any experience naming my own price on a rental car, however, I suspect it could be worth it.  Priceline indicates that you can save up to 30% by doing so. 

The bottom line

     If you’re looking to stay at a specific hotel you may not want to use Priceline to name your own price.  There’s a chance your bid may not get accepted by the hotel you’re hoping for.  On the other hand if you’re just looking for a certain star level, I’d highly recommend submitting a bid.  I wound up saving $85 per night on a five-star hotel in Las Vegas, the Wynn, through Priceline.  That will pay for several buffets and enough drinks to keep the party going all weekend long!

     If you’re interested in naming your own price, or for more information, click here or on the Priceline link above.