Priceline.com
Encyclopedia
Priceline.com is a company and a commercial website
that helps users obtain discount
rates for travel
-related purchases such as airline
tickets and hotel
stays. The company is not a direct supplier of these services; instead it facilitates the provision of travel services by its suppliers to its customers. It is headquartered in Norwalk
, Connecticut
, United States
.
Priceline was the brainchild of digital entrepreneur
Jay S. Walker. The company's origins were closely tied with Walker's company Walker Digital
. Hong Kong company Cheung Kong Holdings later purchased a significant portion of Priceline's stock.
system, where travelers would name their price for airline tickets, hotel rooms, car rentals and vacation packages. While the purchaser can select a general location, service level and price, the hotel, rental car company or airline (as well as the exact location of the hotel and the exact flight itinerary) is disclosed only after the purchase had gone through, with no rights to cancel.
Priceline's cut of the proceeds was the difference between the price an individual named and the price charged by the service establishment. More recently, it has added a more traditional model where travelers are presented prices and are also told the name of the establishment. Travelers can still choose to name their price for airline tickets, hotel rooms and rental cars. The number of airlines, hotels and car rental company participants in the name your own price program has increased as these suppliers utilize this opaque market Priceline created to sell their perishable inventory without lowering prices through other traditional sales channels. Priceline now also sells discounted cruises, as well as tours and attractions.
Priceline.com also experimented with selling gasoline and groceries under the Name Your Own Price model in 2000, at the height of the dot-com bubble
, through a partially-owned affiliate, WebHouse Club. Priceline also got into the online auction business with Priceline Yard Sales, where individuals would use the Priceline system to haggle for various second-hand items and trade them in person. Priceline also sold long distance telephone service and automobiles under the Name Your Own Price model. All of these experiments were terminated in 2002. Another experiment, the Name Your Own Rate system for home loans, continues under a license with EverBank
. In 2002 Priceline licensed its “Name Your Own Price” travel system to eBay.
Priceline returned to its original focus on travel products, such airfares and rental cars, with the addition of cruise sales and a special emphasis on hotel bookings in its commercials. During November 2007 Priceline “permanently” eliminated all booking fees on published airfares.
, who agreed to do the spots for free in exchange for stock
in the company. The arrangement turned out to be quite profitable for Shatner, who sold much of the stock shortly before its value plummeted in the dot-com bust
and has since made approximately $600 million from Priceline.com. (This reported sum has been met with some skepticism from the financial press.) An early ad campaign featuring Shatner had him belt out popular songs in spoken word
, in the style of his album, The Transformed Man
. He was "replaced" in 2004 by his Star Trek
co-star, Leonard Nimoy
. Shatner still appeared in spots for Priceline, running into Nimoy as his replacement. When that campaign ended, Shatner again became Priceline's sole spokesperson. In 2007, a new ad campaign by Butler, Shine, Stern & Partners
had Shatner take on the role of Priceline's Negotiator.
Priceline has been parodied on the Tonight Show by Jay Leno
and in multiple Saturday Night Live
skits. In a September 2008 SNL skit, during the opening monologue by Olympian Michael Phelps
, Shatner rose from the audience to give Phelps tips on product endorsements.
, an online hotel
reservations service which provides a service similar to Priceline's but specializing in Asia Pacific. Agoda's network includes 8,000 hotels in Asia and more than 49,000 worldwide.
Priceline is the parent company of the European organization Booking.com. Established in 1996, Booking.com is the world's leading online hotel reservations agency by room nights sold, attracting over 30 million unique visitors each month via the Internet from both leisure and business markets worldwide. Booking.com offers many types of property, ranging from small independent hotels to a five star luxury through Booking.com. The Booking.com website is available in 41 languages and offers over 168,000 hotels in 155 countries.
Booking.com is based in Amsterdam (Netherlands) and is supported internationally from offices in Amsterdam, Athens, Auckland, Bangkok, Barcelona, Berlin, Brussels, Buenos Aires, Cambridge, Cape Town, Casablanca, Chicago, Copenhagen, Dubai, Dublin, Edinburgh, Grand Rapids, Hong Kong, Honolulu, Houston, Istanbul, Kuala Lumpur, Las Palmas de Gran Canaria, Lille, Lisbon, London, Loulé (PT), Lyon, Madrid, Málaga, Mexico City, Milano, Montréal, Moscow, Munich, New York, Nice , Norwalk, Orlando, Oslo, Paris, Prague, Riga, Rome, San Francisco, São Paulo, Shanghai, Singapore, Sofia, Stockholm, Sydney, Tokyo, Vancouver , Vienna, Warsaw, Zagreb and Zürich.
As of September 26th 2011 Darren R. Huston has been named Chief Executive Officer of Booking.com.
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
that helps users obtain discount
Discounts and allowances
Discounts and allowances are reductions to a basic price of goods or services.They can occur anywhere in the distribution channel, modifying either the manufacturer's list price , the retail price , or the list price Discounts and allowances are reductions to a basic price of goods or services.They...
rates for travel
Travel
Travel is the movement of people or objects between relatively distant geographical locations. 'Travel' can also include relatively short stays between successive movements.-Etymology:...
-related purchases such as airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
tickets and hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
stays. The company is not a direct supplier of these services; instead it facilitates the provision of travel services by its suppliers to its customers. It is headquartered in Norwalk
Norwalk, Connecticut
Norwalk is a city in Fairfield County, Connecticut, United States. According to the 2010 U.S. Census, the population of the city is 85,603, making Norwalk sixth in population in Connecticut, and third in Fairfield County...
, Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Priceline was the brainchild of digital entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
Jay S. Walker. The company's origins were closely tied with Walker's company Walker Digital
Walker Digital
Walker Digital is a privately held American research and development lab based in Stamford, Connecticut. It was founded in 1994 by Jay S. Walker, who also holds the position of chairman as of 2011. The company specializes in creating applications and business solutions that work with large-scale...
. Hong Kong company Cheung Kong Holdings later purchased a significant portion of Priceline's stock.
History
Priceline first gained prominence for its Name Your Own PriceName Your Own Price
The "Name-Your-Own-Price" system is where a buyer specifies a price and a product and/or service, and asks sellers to match that combination...
system, where travelers would name their price for airline tickets, hotel rooms, car rentals and vacation packages. While the purchaser can select a general location, service level and price, the hotel, rental car company or airline (as well as the exact location of the hotel and the exact flight itinerary) is disclosed only after the purchase had gone through, with no rights to cancel.
Priceline's cut of the proceeds was the difference between the price an individual named and the price charged by the service establishment. More recently, it has added a more traditional model where travelers are presented prices and are also told the name of the establishment. Travelers can still choose to name their price for airline tickets, hotel rooms and rental cars. The number of airlines, hotels and car rental company participants in the name your own price program has increased as these suppliers utilize this opaque market Priceline created to sell their perishable inventory without lowering prices through other traditional sales channels. Priceline now also sells discounted cruises, as well as tours and attractions.
Priceline.com also experimented with selling gasoline and groceries under the Name Your Own Price model in 2000, at the height of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
, through a partially-owned affiliate, WebHouse Club. Priceline also got into the online auction business with Priceline Yard Sales, where individuals would use the Priceline system to haggle for various second-hand items and trade them in person. Priceline also sold long distance telephone service and automobiles under the Name Your Own Price model. All of these experiments were terminated in 2002. Another experiment, the Name Your Own Rate system for home loans, continues under a license with EverBank
EverBank
EverBank is an American diversified financial services company providing banking, mortgages, and investing services. It is based in Jacksonville, Florida, U.S. It operates through standard banking offices, and through its Direct Banking division. EverBank Direct operates by telephone, mail, and...
. In 2002 Priceline licensed its “Name Your Own Price” travel system to eBay.
Priceline returned to its original focus on travel products, such airfares and rental cars, with the addition of cruise sales and a special emphasis on hotel bookings in its commercials. During November 2007 Priceline “permanently” eliminated all booking fees on published airfares.
Spokespeople
For years, Priceline's official spokesperson has been William ShatnerWilliam Shatner
William Alan Shatner is a Canadian actor, musician, recording artist, and author. He gained worldwide fame and became a cultural icon for his portrayal of James T...
, who agreed to do the spots for free in exchange for stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
in the company. The arrangement turned out to be quite profitable for Shatner, who sold much of the stock shortly before its value plummeted in the dot-com bust
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and has since made approximately $600 million from Priceline.com. (This reported sum has been met with some skepticism from the financial press.) An early ad campaign featuring Shatner had him belt out popular songs in spoken word
Spoken word
Spoken word is a form of poetry that often uses alliterated prose or verse and occasionally uses metered verse to express social commentary. Traditionally it is in the first person, is from the poet’s point of view and is themed in current events....
, in the style of his album, The Transformed Man
The Transformed Man
The Transformed Man is actor William Shatner's debut album. It was released in 1968, while Shatner was still starring in the original Star Trek series, and began his musical career. The concept of the album was to juxtapose famous pieces of poetry with their modern counterparts, pop lyrics...
. He was "replaced" in 2004 by his Star Trek
Star Trek
Star Trek is an American science fiction entertainment franchise created by Gene Roddenberry. The core of Star Trek is its six television series: The Original Series, The Animated Series, The Next Generation, Deep Space Nine, Voyager, and Enterprise...
co-star, Leonard Nimoy
Leonard Nimoy
Leonard Simon Nimoy is an American actor, film director, poet, musician and photographer. Nimoy's most famous role is that of Spock in the original Star Trek series , multiple films, television and video game sequels....
. Shatner still appeared in spots for Priceline, running into Nimoy as his replacement. When that campaign ended, Shatner again became Priceline's sole spokesperson. In 2007, a new ad campaign by Butler, Shine, Stern & Partners
Butler, Shine, Stern & Partners
Butler, Shine, Stern & Partners is an independent advertising agency located in Sausalito, California.-History:Butler, Shine, Stern & Partners was founded in 1993 when John Butler and Mike Shine became the first creative team to leave Goodby, Silverstein & Partners to form their own agency...
had Shatner take on the role of Priceline's Negotiator.
Priceline has been parodied on the Tonight Show by Jay Leno
Jay Leno
James Douglas Muir "Jay" Leno is an American stand-up comedian and television host.From 1992 to 2009, Leno was the host of NBC's The Tonight Show with Jay Leno. Beginning in September 2009, Leno started a primetime talk show, titled The Jay Leno Show, which aired weeknights at 10:00 p.m. ,...
and in multiple Saturday Night Live
Saturday Night Live
Saturday Night Live is a live American late-night television sketch comedy and variety show developed by Lorne Michaels and Dick Ebersol. The show premiered on NBC on October 11, 1975, under the original title of NBC's Saturday Night.The show's sketches often parody contemporary American culture...
skits. In a September 2008 SNL skit, during the opening monologue by Olympian Michael Phelps
Michael Phelps
Michael Fred Phelps is an American swimmer who has, overall, won 16 Olympic medals—six gold and two bronze at Athens in 2004, and eight gold at Beijing in 2008, becoming the most successful athlete at both of these Olympic Games editions...
, Shatner rose from the audience to give Phelps tips on product endorsements.
Agoda.com
In November 2007 Priceline acquired Bangkok-based AgodaAgoda
Agoda is an internet company which provides online hotel reservations services for properties focused primarily in the Asia Pacific Region, with offices in Singapore, Bangkok, Hong Kong, Kuala Lumpur, Phuket, Bali, Sydney, Tokyo, Seoul, Beijing, Shanghai, and Manila.-History:The company was...
, an online hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
reservations service which provides a service similar to Priceline's but specializing in Asia Pacific. Agoda's network includes 8,000 hotels in Asia and more than 49,000 worldwide.
Booking.com
Priceline is the parent company of the European organization Booking.com. Established in 1996, Booking.com is the world's leading online hotel reservations agency by room nights sold, attracting over 30 million unique visitors each month via the Internet from both leisure and business markets worldwide. Booking.com offers many types of property, ranging from small independent hotels to a five star luxury through Booking.com. The Booking.com website is available in 41 languages and offers over 168,000 hotels in 155 countries.
Booking.com is based in Amsterdam (Netherlands) and is supported internationally from offices in Amsterdam, Athens, Auckland, Bangkok, Barcelona, Berlin, Brussels, Buenos Aires, Cambridge, Cape Town, Casablanca, Chicago, Copenhagen, Dubai, Dublin, Edinburgh, Grand Rapids, Hong Kong, Honolulu, Houston, Istanbul, Kuala Lumpur, Las Palmas de Gran Canaria, Lille, Lisbon, London, Loulé (PT), Lyon, Madrid, Málaga, Mexico City, Milano, Montréal, Moscow, Munich, New York, Nice , Norwalk, Orlando, Oslo, Paris, Prague, Riga, Rome, San Francisco, São Paulo, Shanghai, Singapore, Sofia, Stockholm, Sydney, Tokyo, Vancouver , Vienna, Warsaw, Zagreb and Zürich.
As of September 26th 2011 Darren R. Huston has been named Chief Executive Officer of Booking.com.