I've got an airfare to Europe here...going once...going twice...SOLD to the fella in Philly with the Macintosh who already gave us his credit card number and can't back out now!

"Supply and demand" is a two-way street, and the Internet is the traffic cop who pointed that out to us. Auction sites have truly come into their own—witness the stupefying success and broad cultural effects of eBay. Bidding for travel is no exception—indeed, back in the old days (1998), its champion in shining armor, Priceline.com, was once of the true darlings of the Internet. Even Captain Kirk loved it! Well, Priceline is still around, and it has a bit of competition (see right), plus there's that variant on bidding sites called opaque fares, but we'll get to that in a minute.

First: online travel auctions. Simple. You give them your home airport, your destination, and your travel dates, they provide you with a deal up to 50% lower than official fares. The catch? You gotta be flexible on departure time and you don't get to pick your airline. Also, you have to brush up on the going rates before you get started.

The idea is you put in your itinerary and a price you're willing to pay, it lets the airlines (all the biggies are members of Priceline) decide whether to accept your bid and sell you a seat. Once you enter a bid, you are obligated to pay if an airline accepts the bid, so you have to be sure of this going into it. After all, they have your credit card number.

You also have to do your homework and find out the absolute minimum you could get a ticket for through regular methods. That means going through the whole rigamarole described on the "Getting the Cheapest Airfare" page. Then, armed with that fare, hack maybe 35% off it and plug that amount into Priceline. No, that 35% isn't scientific; I just made it up. It's a fairly reasonable rate—and yes, it's pointless to try and get a transatlantic ticket for $10—and you may get a bite.

Seriously: find out the going rate first. Whenever I go to these sites, I wince to see folks bidding ludicrous sums for trips that would cost them less if they just rang up the airline and asked for a ticket straight out—like bidding $250 for a round-trip ticket from NYC to London when the going rate at the time, on the very same airline, was $170. (Yeah, I know: great price. That’s what you can find on the sales page of Virgin Atlantic in the wintertime.)

Now you can always raise your bid if the first one doesn't get a nibble on the line. In fact, even if Priceline sends you a "counteroffer," don't take it yet. Just raise the bid a bit. Nine times out of ten, you'll get a taker before you ever reach the level of that counteroffer.

Note that you get the most restrictive ticket imaginable; you won't be able to change the dates or travel times, not even by paying the normal change fee. Also, you might end up with a circuitous routing. (I'd rather pay an extra $20 or $30 to fly direct from New York to Rome than be forced to waste an extra day flying from New York to Detroit to Amsterdam to Rome—which is a distinct possibility if Northwest/KLM accepts your bid.)

You can pull out before the bid is accepted if you get cold feet or feel the number is going too high. But once the auction closes or your bid is accepted, that's it. Your Visa bill instantly gets longer and your ticket goes in the mail (so to speak).

Opaque fares are not quite as loosey-goosey as auctions. You give an opaque fares booker like Hotwire your dates (departure/return) and cities (where you are and where you wanna go), and they give you a price to match. You pick the price you like (hint: it's the lowest one). Only after you pay the virtual piper do you find out the name of the airline and precise times of the flights.

There's nothing fishy about all this (well, not with the legit operations listed to the right). It’s just a way for airlines to move empty seats at amounts that far undercut their published fares without admitting that they're willing to sell seats for so little.

The two big opaque sites....

priceline.com - Though William Shatner no longer sings (poorly) its praises on national television, this darling of the dot.com bubble is still alive and well and accepting bids. Though you get to pick your travel dates and departure and arrival cities, you don't get to be picky about the times of your flights. For international, the airline that accepts your bid is free to assign you a seat on any flight from 5am on your stated departure date until 2am that night (well, technically the next day). To help you be vague so as to cast a wide net, when you enter your departure/arrival cities, Priceline will provide you with a selection of airports in or near your choice cities, and you can select as many as you're willing to possibly use (the more you pick, the greater your chances of getting that low fare). The airline that accepts your bid will tell you where you're flying from and to. Also note that the price you bid out will not include taxes, which can tack on an additional $85 to $115 (this isn't fleecing you; that's actually how much government taxes, security charges, airport fees, etc actually run these days), plus $6.95 for processing and, if you get paper tickets, $19.95 for S&H.

hotwire.com - Industry leader in online opaque fares, offering up to 45% off published airfares, 75% off hotel rates. Hotwire's 33 associates include founders America West, American Airlines, Continental, Northwest, United and US Airways. They also rep over 6000 hotels in 150 US cities and resorts. Unlike some bargain sites, they encourage you to shop around and try to beat their fares, and will hold a reservation free-of-charge for one hour. They also have some juicy last-minute deals. Hotwire was purchased in Sept 2003 by Barry Diller's insatiable InterActiveCorp (the same guy who owns Web travel powerhouses Expedia, Priceline, Hotels.com, and CitySearch plus other household-name business like TicketMaster, Match.com, and LendingTree.com), so be ready for possible changes—though Mr. Diller seems to operate under a "don't fix what ain't broken" mantra in companies he acquires; he just uses his clout to make them bigger.

Below are recent winning priceline.com bids for properties in Las Vegas, Nevada, USA.

 

Hotel	$79 , Dates, Area
Hotel	$79 , Dates, Area
Hotel	$79 , Dates, Area

2.5*, Convention Centre, UNLV Residence Inn, $47, 18 June 2005

4*, Strip, Alladin, $90, 6 June 2005

2.5*, Convention Centre, Residence Inn Hughes, $47, 17-19 June 2005

Quick overview of hotel bidding

You can get great discounts on hotels by naming your own price—by bidding on priceline.com. Priceline creates a win-win situation: it helps hotels and resorts fill empty rooms, while it gives you fantastic deals. This site gives you step-by-step priceline bidding tips so that you can make the smartest bids, for the lowest prices.

Here you'll learn:

• What you need to know about priceline's accommodations and its best price guarantee.
  
  
• Hotel bidding tips for the smartest hotel bids and greatest savings.

June 2005 update

• With occupancy increasing again, you can no longer expect 75% off at the most popular destinations, such as Midtown Manhattan, Orlando, or Seattle. However, still expect to save 40% over Expedia.com at popular destinations.
  
  Check out typical discounts:
  priceline Hotels: Our 10 Best Neighborhoods!
  
  
• Generally, you'll receive the biggest discounts on 3- and 4-star hotels and resorts.
  
  
• Hotels near large international airports continue to offer the best values in the U.S. and Canada when you use priceline.com (Hotels) or Hotwire.com. A Hyatt or Marriott often costs less than a nearby Motel 6.

Priceline's accommodations

• At priceline.com (Hotels), you bid on a star-quality range in a neighborhood. Most people want particular amenities, price, and neighborhood, rather than a specific hotel.
  
  
• You can bid up to 6 p.m. local time on the day of arrival in most cities.
  
  
• Priceline's star ratings closely approximate the American Automobile Association's 1- to 5-diamond rankings.
  
  
• For each city, priceline lists the amenities standard for each star rating. These could include a fitness center, room service, restaurant, a business center, and many more. Note, however, that using these amenities may cost extra.
  
  
• Rooms at some hotels may not be large enough for more than two people. If you require a larger room or kitchen facilities, check prices at priceline's main competitor, Hotwire.com.

Best price guarantee

Priceline.com guarantees you the lowest online price available on your hotel room. If you reserve a hotel on priceline, and then, within 24 hours, find a lower price on another website for the same type of room at the same hotel on the same dates and available to the general public, priceline will refund 100% of the difference.

You can't lose!

7 bidding tips for hotels and resorts

1. Do your research.
2. Consider days and seasons.
3. Remember priceline rules.
4. Prepare your money-saving bid on hotel rooms.
5. Compare your proposed bid to Hotwire's price.
6. Submit a "smart" bid that increases your chance for savings.
7. What to do if your bid is accepted, or if it isn't.

1. Do your research.

As always, BidonTravel's best tip for bidding on hotel rooms is to do your research first. Look for the best current prices on hotels for your desired quality range, dates, and destination the same day you want to bid on priceline. Seeing the lowest room rates available allows you to avoid overbidding on priceline.

Here are some of the places to check:

• Discount travel websites, such as Hotels.com and Travelocity Hotel Deals, which give prices for specific hotels, rather than offering a bidding opportunity.
  
  (Hotels.com lists hotels with best values first.)
  
• AAA auto club members may access http://www.aaa.com to check on price ranges.

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2. Consider days and seasons.

• Keep in mind the days of the week you want to book.
  
  Hotels in most cities offer their lowest rates and biggest discounts on weekends—Friday, Saturday, and sometimes Sunday nights—and around holidays, except during special events.
  
  Because weekend rates are usually priced 25 - 50% off regular rates, do not base your bid on a Wednesday rate if you are actually arriving on Friday.
  
  Exceptions: Weekends in Orlando, Las Vegas, Reno, and most resorts are more expensive. (In Vegas, Sunday through Wednesday are cheapest. The prices rise each subsequent night, with Saturday night the most expensive. You can practically (well, almost) name any price at the best hotels in Las Vegas if you book for mid-week nights when there are no conventions in town.)
  
  
• Of course, hotels in resort areas give bigger discounts during off-seasons.

3. Remember priceline rules.

• You can only rebid on a hotel range with the same particulars once every 72 hours. You can rebid immediately if you change the neighborhood, city, dates, or star category.
  
  For maximum savings, be sure to read how to submit your initial bid and any rebids in Section 6.
  
  
• Once you authorize priceline to charge your credit card, your reservations become non-refundable and cannot be changed in any way, even by paying a penalty.

Click on priceline.com (Hotels) to bid

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4. Prepare your money-saving priceline bid.

• When determining your bid, consider everything, such as season, school holidays, days of week, the prices for specific hotels you found in your on-line research, as well as how much you want to go.
  
  
• In general, the higher the star category, the greater percentage off the listed price you should bid.
  
  
• If you saw a lot of hotels in your quality range available at an on-line site like Travelocity.com, you can bid lower on priceline.com (Hotels). If not, you'll need to bid more.
  
  
• Currently, the majority of successful priceline bids range from 25 to 55% off discount sites, such as Hotels.com or Travelocity, which list prices for specific hotels. Priceline customers save on average over 40%.
  
  Never bid less than 30% off the prices you see on sites that list prices for specific hotels, unless you are traveling during a large convention or another exceptionally busy time or have no time to rebid.

Click on priceline.com (Hotels)  to bid

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5. Compare your proposed bid to Hotwire's prices.

• A great way to avoid overbidding on priceline is to check Hotwire.com's prices just before you bid on priceline.
  
  Priceline and Hotwire.com are similar. (You don't know your hotel name until you pay, no refunds, no changes . . ..) However, Hotwire offers only fixed prices and no bidding.
  
  Although priceline has relationships with many more hotels, which increases your chance to save, Hotwire.com does give you more room choices (such as kitchenettes).
  
  
• The 15% rule: In most cases, plan to make your priceline bid 15% less than Hotwire's displayed price, which excludes taxes and fees.
  
  
• The 30% rule: Before you submit your priceline bid, make sure that 15% off the Hotwire rate is at least 30% off the rates you have found on other online sites, for the same dates and star rating (except during large conventions or other special events). In the rare instance when Hotwire's price is unusually high, this policy will help you avoid overbidding on priceline.
  
  
• If your priceline bid or rebids are not successful (see rebidding strategies), you can go back to Hotwire within its payment deadline, and still get a bargain price.

6. Submit a "smart" bid to priceline hotels.

• Remember priceline's 72-hour requirement for rebidding on the exact same quality and dates. However, you can bid again before 72 hours if you change a date, city, star category, or neighborhood.
  
• When you tell priceline.com (Hotels) what city you want, you are usually given a choice of neighborhoods. If you are interested in more than one neighborhood, hold back your second choice neighborhood (or several), in case you have to bid again.
  
  Using this flexibility allows you to rebid immediately, and also to make an especially low first bid. You may get lucky.
  
  
• Also, use star quality as part of your bidding strategy. Start bidding with a higher star quality so that you can make immediate rebids using lower stars.
  For example, if you start bidding with 2 stars, priceline checks for 2-, 3-, 4-, and 5-star hotels in your price range. You cannot re-bid using 3, 4, or 5 stars (even if you want to bid a higher price).
  
  But, if you start with 4 stars, you can re-bid for 3 stars and then for 2 stars right away.
  
  
• When you enter a bid, priceline gives your total cost, including taxes and fees, before you confirm payment. If this total is higher than you want to pay, adjust your bid as many times as you like before you submit it as an official bid.
  
  
• Click on priceline.com (Hotels) to bid on accommodations.