NORWALK, Conn. -- The Connecticut Better Business Bureau has
rescinded Priceline.com's membership because of consumer
complaints.
The action came after more than 300 complaints were filed with
the CBBB and government regulatory agencies against Priceline.com,
based here, since its inception in April 1998.
Priceline spokesman Brian Ek said the company has the option to
appeal, but is first seeking further explanation about the
membership revocation. He said Priceline.com in June made changes
to the site so it could retain the Better Business Bureau.
He said it has answered every complaint letter it has received
from consumers. Further details were not immediately available
because CBBB members were at a conference in Puerto Rico.
Priceline.com's loss of its CBBB membership was disclosed Sept.
21 in a CBS 48 Hours program about consumer complaints.
The following day, Northwest's vice president of distribution
planning, Al Lenza, told an eTravelWorld session that Northwest will
re-evaluate its partnership with Priceline.com once rival Hotwire is fully
functional.
Northwest will measure the two sites' distribution costs,
incremental revenues, prices, customer service, and whether the
companies "are marketing our customer information to third
parties," Lenza said.
Priceline.com "doesn't sell, rent or share customer information"
with third parties, Ek countered a few days later.
Northwest is one of five airlines involved in Hotwire. Started
by the Texas Pacific Group, Hotwire, now in beta test, is designed
as an outlet for unsold airline seats.
During the eTravelWorld session, Forrester analyst Henry
Harteveldt asked Northwest's Lenza whether the industry should be
surprised if Northwest pulls out of Priceline.com.
Said Lenza: "I think I answered your question."
Following the conference session, Lenza told Travel Weekly that
"we think Hotwire will be preferable," but the airline will have to
wait to see how consumers feel about it.