Priceline introduced the name-your-own-price business model with its online travel service in 1998. Instead of displaying a conventional price, Priceline let customers submit a bid for services such as flights, hotel rooms, and rental cars.
The model operated like a reverse auction. A customer named a price and selected general requirements, while Priceline checked whether an undisclosed supplier would accept the offer. In many cases, the buyer did not learn the airline, hotel, or exact itinerary until after paying, making the product “opaque.”
This approach helped suppliers sell otherwise unsold inventory without publicly lowering their advertised prices. Priceline later expanded into ordinary published-price bookings, and it began deemphasizing the name-your-own-price feature in the 2000s. The company’s brand and corporate identity also evolved through later ownership changes.