The Name Your Own Price feature on Priceline was a novel way for travelers to bid for discounted hotel rooms when it first launched in the late 1990s. However, in recent years Priceline ended this iconic offering that once set it apart in the online travel industry.

If you’re short on time, here’s a quick answer to your question: Priceline discontinued its Name Your Own Price bidding system in 2018 primarily due to shifts in consumer booking preferences and the rise of competing opaque booking sites.

In this comprehensive guide, we’ll take a deep dive into the key reasons why Priceline ultimately removed the Name Your Own Price feature after having it for over 20 years. We’ll also look at how the demise of this once-innovative bidding model reflects larger changes in the online travel industry.

The Origins and Popularity of Name Your Own Price

Name Your Own Price was a feature introduced by Priceline in the late 1990s that allowed customers to set their own price for hotels, flights, and rental cars. It was a groundbreaking concept that disrupted the traditional travel booking industry and gained significant popularity among bargain hunters and savvy travelers.

How Name Your Own Price worked on Priceline

With Name Your Own Price, customers could specify the price they wanted to pay for a hotel room, flight, or rental car. They would then submit their offer to Priceline, which would only reveal the name of the provider after the offer was accepted.

This element of surprise added a sense of adventure and excitement to the booking process.

Priceline would search its inventory and negotiate with hotels, airlines, and car rental companies to find a match for the customer’s desired price. If a match was found, the booking was confirmed. However, customers had to be flexible with their travel dates and times, as Priceline would determine the specifics of the booking based on availability.

The Name Your Own Price feature allowed customers to save significant amounts of money on their travel expenses. By offering a lower price than what was typically advertised, customers could take advantage of unsold inventory and last-minute deals.

This made it an attractive option for budget-conscious travelers who were willing to be flexible with their plans.

The feature grows Priceline’s customer base

Name Your Own Price quickly gained popularity and became one of the main reasons why customers chose Priceline over other travel booking platforms. The ability to name their own price gave customers a sense of control and empowerment, making them feel like they were getting a better deal than the standard prices offered elsewhere.

The feature also helped Priceline attract a new segment of customers who were looking for unique travel experiences at discounted rates. By offering a platform where travelers could potentially score amazing deals, Priceline was able to tap into a market of adventurous individuals who were willing to take risks in exchange for substantial savings.

However, despite its initial success, Priceline eventually decided to discontinue the Name Your Own Price feature. This was mainly due to changes in the travel industry, including the rise of online travel agencies and the increased availability of discounted rates on other platforms.

Priceline shifted its focus to other pricing models that better aligned with the evolving needs of its customers.

Although Name Your Own Price is no longer available on Priceline, its impact on the travel industry and its popularity among bargain hunters will always be remembered. It was a revolutionary concept that changed the way people approached travel booking and brought a sense of excitement to the process.

The Decline in Use of Name Your Own Price

Once a popular feature in the travel industry, Priceline’s Name Your Own Price (NYOP) option has seen a significant decline in its usage. There are several factors that have contributed to this decline, including changing consumer preferences and the rise of competing sites.

Changing consumer preferences

One of the main reasons for the decline in the use of Name Your Own Price is the changing preferences of consumers. In the past, consumers were more willing to take a risk and bid on hotel rooms or flights in the hopes of getting a great deal.

However, as consumer behavior has evolved, people now prefer more transparency and control over their travel bookings.

Consumers today want to compare prices, read reviews, and have the ability to choose the exact hotel or flight they want. This shift in preferences has led to a decrease in demand for the Name Your Own Price option, as it does not provide the same level of control and transparency that consumers are seeking.

The rise of competing sites

Another factor that has contributed to the decline of Name Your Own Price is the rise of competing travel websites. These sites have recognized the changing preferences of consumers and have adapted their offerings accordingly.

They now provide more options and flexibility, allowing users to search and compare prices across multiple travel providers.

Competing sites like Expedia and have gained popularity due to their user-friendly interfaces and extensive inventory. They offer a wide range of choices, including different room types, airlines, and price options.

This allows consumers to find the best deal for their specific needs without the need to bid on prices.

With the rise of these competing sites, consumers now have more options and greater control over their travel bookings. This has made Name Your Own Price less appealing as it no longer offers the same level of convenience and choice that other platforms provide.

The Operational Challenges of Name Your Own Price for Priceline

Priceline, the popular online travel agency, made a significant change in its business model when it decided to end its iconic “Name Your Own Price” feature. This unique feature allowed customers to submit a desired price for a hotel room or a flight, and Priceline would then try to match that price with a hotel or airline willing to accept it.

While this feature was loved by many bargain hunters, it posed several operational challenges for Priceline.

Difficulty sourcing discounted inventory

One of the main challenges faced by Priceline with the Name Your Own Price feature was sourcing discounted inventory. In order to fulfill customers’ requests for lower prices, Priceline had to negotiate special deals with hotels and airlines.

This required extensive partnerships and negotiations, which became increasingly difficult as Priceline grew in size. Additionally, sourcing discounted inventory for specific dates and locations proved to be a complex task, leading to potential mismatches and customer dissatisfaction.

According to a study conducted by the Cornell School of Hotel Administration, the Name Your Own Price feature put significant pressure on hotels to provide rooms at deeply discounted rates. This resulted in a strain on hotel revenue and profitability, pushing many hotels to reconsider their participation in the program.

Complexity for hotels

Another challenge for Priceline was the complexity the Name Your Own Price feature introduced for hotels. Hotels had to carefully manage their inventory and pricing to accommodate the varying demands of customers using this feature.

They had to weigh the benefits of participating in the program against the potential loss of revenue from selling rooms at significantly discounted rates.

The operational complexities associated with the Name Your Own Price feature became more pronounced as hotels tried to optimize their revenue management strategies. They had to carefully analyze historical data, market trends, and demand patterns to determine the right price for their rooms.

This added complexity made it challenging for hotels to efficiently manage their inventory and maximize their profits.

How Ending Name Your Own Price Reflects Larger Industry Shifts

When Priceline made the decision to end Name Your Own Price, it was not simply a move made in isolation. Rather, it reflected larger industry shifts that have been occurring in the online travel booking sector.

These shifts have been driven by various factors, including the move toward personalized pricing algorithms and the push for greater pricing transparency.

The move toward personalized pricing algorithms

One of the main reasons behind Priceline’s decision to end Name Your Own Price is the growing reliance on personalized pricing algorithms within the industry. These algorithms use vast amounts of data to determine the optimal price for a particular user, taking into account factors such as past booking behavior, travel preferences, and even demographic information.

By moving away from Name Your Own Price, Priceline is able to leverage these algorithms to offer more tailored and competitive pricing options to its customers.

The use of personalized pricing algorithms is not unique to Priceline. Many other online travel booking platforms, such as Expedia and, have also adopted similar approaches. This trend reflects the increasing importance of data analytics and machine learning in the travel industry, as companies strive to better understand and cater to the unique needs and preferences of individual travelers.

Greater pricing transparency

Another factor that played a role in Priceline’s decision to end Name Your Own Price is the push for greater pricing transparency. In recent years, there has been a growing demand from consumers for more clarity and openness when it comes to pricing in the travel industry.

This demand has been fueled by concerns over hidden fees, surcharges, and misleading pricing tactics.

By moving away from Name Your Own Price, Priceline is able to provide customers with more transparent and upfront pricing options. This allows travelers to make more informed decisions and compare prices more easily, ultimately leading to a more competitive and fair marketplace.

It’s worth noting that the shift toward greater pricing transparency is not limited to Priceline. Other online travel booking platforms have also taken steps to address this issue. For example, now prominently displays the total price, including taxes and fees, right from the initial search results page.

This move has been well-received by consumers, as it eliminates the need to navigate through multiple screens to find the true cost of a booking.


In summary, Priceline ended its Name Your Own Price feature in 2018 primarily due to shifts in consumer preferences toward more personalized and transparent booking experiences, as well as the rise of competing opaque booking sites.

The demise of this once-innovative bidding model for discounted travel reflects larger changes sweeping through the online travel industry. While Name Your Own Price was pivotal in establishing Priceline as a discount travel leader, the company determined it was time to move beyond this model to align with contemporary booking behaviors and stay competitive.

The discontinuation of Name Your Own Price closed the book on one of online travel’s most iconic innovations.

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