Why do hotels let priceline sell their rooms so cheap?

[Laurabearz]

I have been poking aorund priceline and bidding for travel and it seems like a lot of really decent hotels which are renting rooms on their website for 150-300 bucks can be had for like 50 if you big correctly...

So why does a hotel that can get say 200 a night let priceline sell if for 50?

Thanks

 

[autumnbaby9]

To fill the hotel to capacity. It is better to let it go for $50 then to let it sit empty.

 

[Anewman]

To fill the hotel to capacity. It is better to let it go for $50 then to let it sit empty.

Exactly...

They just need to make sure the rate is going to cover the housekeeping/power/etc... costs.

And depending on the hotel, a full hotel will increase revenues at the bars/restaraunts/spas/and any other money makers that the hotel.

 

[dreamcometrue]

To fill the hotel to capacity. It is better to let it go for $50 then to let it sit empty.

exactly! And if you think about it, it really doesn't cost them $200 to upkeep that one hotel room and its occupants, so even if they give it away for $50 they cover their costs!

 

[Acklander]

Usually it depends on timing. I used to work for a hotel and if the time frame was far away, their wouldn't be much of a discount unless, historically, it was a slow time of year. The closer you get to the date, the lower they would list the accepting amount. About 4-5 days before hand they would drop the price way down, and a ton of bookings would come in. Even though the rate wouldn't necessarily cover the fixed expenses needed for that room (insurance, loan payments etc...) it would cover the variables (cleaning, utilities) and it helped with giving the employees hours so you didn't lose them until the "busy season"

 

[Laurabearz]

Thanks everyone