Priceline.com, a pioneer in online travel booking, has officially discontinued its Name Your Own Price bidding service for car rentals. This move, which follows the removal of the same feature for flights in 2016, marks a significant shift in how consumers can find deals on rental cars through the platform. For over two decades, Priceline’s Name Your Own Price tool allowed users to bid for flights and car rentals by specifying their desired price, with Priceline either accepting or rejecting the offer. The catch was that customers only discovered the specific car rental company after their bid was accepted.
With the elimination of the Name Your Own Price option for both flights and car rentals, Priceline is now directing users towards its Express Deals feature. Express Deals offers pre-negotiated discounted rates, providing savings without the bidding process. Similar to Name Your Own Price, the identity of the car rental agency is revealed only after the booking is finalized.
Currently, Priceline has stated no immediate plans to discontinue the Name Your Own Price feature for hotels, a more substantial part of their business compared to flights and car rentals. “Priceline isn’t going to speculate publicly on the future of Name Your Own Price for hotels,” stated spokesman Devon Nagle, emphasizing, “There are no plans to sunset it for hotels.”
However, industry experts suggest that the trend is clear. The evolution of online booking and the increasingly competitive landscape have diminished the relevance of Priceline’s Name Your Own Price model, even for hotels.
The Rise of Instant Booking and the Decline of Bidding
Today’s travelers, especially those booking on mobile devices, expect speed and convenience. Whether securing a last-minute hotel after an evening out or adjusting plans on the fly, users are accustomed to quick solutions. The bidding process inherent in Name Your Own Price, with its waiting periods and potential for rejected offers, no longer aligns with the demands of the modern traveler. Navigating bidding parameters and resubmitting offers on a mobile device can be cumbersome when compared to the instant gratification of booking through other platforms.
Priceline’s own website subtly reflects this shift. The homepage prominently features Express Deals, advertising “Hotels up to 60% off,” while Name Your Own Price promotions are relegated to a less visible position, indicating a clear change in focus.
Express Deals Take Center Stage: A Sign of Changing Times
The prominence of Express Deals, offering discounts of up to 60%, is also telling. Historically, Name Your Own Price was positioned as the gateway to the deepest discounts, with Express Deals initially touting maximum savings of around 45%. The fact that Express Deals now offers comparable, if not better, discounts underscores the reduced need for the bidding model.
The mobile revolution, fueled by apps like HotelTonight, has further accelerated the obsolescence of bidding for travel. These apps provide discounted hotel rates with just a few taps, eliminating the complexities of the Priceline bidding system. Why engage in a process of bidding, rejection, and parameter adjustments on a mobile device when alternative platforms offer seamless booking experiences without the hassle?
Industry Insights on the End of an Era
Brian Harniman, who was involved in the launch of Priceline’s Name Your Own Price service in 2000, believes the discontinuation for car rentals validates the preference for transparent, published rates. He notes that Priceline’s sister brand, Rentalcars.com, delivers “global coverage and competitive rates” through a traditional retail model.
Harniman argues that operating both a published rate model and an opaque bidding model for car rentals became redundant for Booking Holdings, Priceline’s parent company, especially considering comparable commission structures. He also suggests that the increasing popularity of ride-sharing services like Lyft and Uber may be influencing Booking Holdings to streamline operations and optimize resource allocation.
While car rental bidding may be phased out, Harniman believes Name Your Own Price for hotels retains some value, citing a “small, loyal base.” He also proposes that offering the bidding option for hotels allows Priceline to expand its keyword bidding strategy, potentially directing users towards Booking.com’s retail hotel offerings even if they don’t utilize Name Your Own Price directly.
Sam Shank, CEO of HotelTonight, a competitor to Priceline, views the bidding service as outdated. “Making consumers choose blindly to get a deal is a gimmick that’s no longer relevant,” Shank states. “In a mobile world that increasingly books last-minute, the specifics of what you’re booking matter – is there a rooftop bar that looks fun? Will it be open when I arrive?” Shank emphasizes the growing importance of “experiences” in travel, arguing that modern travelers seek unique and memorable stays rather than just a basic room.
Suzanne Markham-Bagnera, a former hotel general manager and professor at Boston University’s School of Hospitality Administration, acknowledges that Name Your Own Price served hotels effectively but has become less relevant in an era where major hotel chains prioritize direct bookings. She points to the time-consuming nature of bidding and the increasing demand for speed and last-minute booking options as key factors. Markham-Bagnera anticipates the eventual phasing out of Name Your Own Price for hotels as Express Deals offer a faster alternative. She notes that both Express Deals and Name Your Own Price models obscure brand identity until booking, allowing major brands to utilize Priceline as a distribution channel while maintaining brand control.
Conclusion: The Evolving Landscape of Car Rental Booking
The end of Priceline’s Name Your Own Price tool for car rentals reflects a broader shift in consumer expectations and the online travel market. Speed, transparency, and mobile-first experiences are now paramount. While Name Your Own Price was once a revolutionary approach to securing travel deals, the current landscape favors instant booking and readily available discounted rates. As Priceline focuses on its Express Deals and other transparent pricing models, consumers are encouraged to explore these streamlined options for securing car rentals and other travel services.
