Hotwire.com negotiates deals with various airlines, hotel chains and car-rental agencies to offer their unsold inventory online at significantly reduced prices. While this approach typically results in a more limited choice, it also allows the site to feature some of the most competitive rates on the Internet. Hotwire sells discount airline tickets from some 30 major carriers, including all seven of the major U.S. airlines, and rooms from more than 20,000 hotels in North America, Europe and the Caribbean. The site began as a fully "opaque" service, in which the name of the vendor is revealed only after the customer completes the purchase. This allows Hotwire's partners to sell their products at steep discounts, without publicly undercutting their published prices.
Site Fundamentals
Search for a hotel in a given city, and you'll be provided with a price, location and general description of the rooms, but the actual name of the establishment is withheld until it's paid for. The same holds true for rental cars, where prices and models are revealed, but the name of the rental company is only disclosed when a booking is confirmed. On the other hand, if you search for a vacation package, you'll be given the actual name of the hotel, along with the cheapest airfare available, called the Hotwire Limited Rate; however, the airline and actual flight times are withheld until purchase. If you're willing to spend a few extra dollars, click on "see other flight options," which brings up a list of additional flights, complete with airline, flight numbers, and departure and arrival times. Similarly, a search for a given itinerary will yield a list that includes Limited Rate flights that have no specific times, plus more expensive options that include airline names and flight times. Hotwire's cruise offerings clearly indicate all key information up front, including the name of the cruise company. One option that can be fun, if somewhat impractical for all but the most flexible travelers, is to click the "Deals" tag on Hotwire's homepage, where last-minute bargains are posted.
Other Options & Services
Flexible Date Search: This option targets the cheapest flights to a given destination within a 30-day window.
Trip Watcher: Alerts customers when prices drop for a specific route, hotel or car.
Travel Ticker: Click here for the latest in travel discounts, or subscribe to receive the news in e-mails.
Trip Starter: Helps customers decide the best time to visit a destination based on prices, weather, activities and local events.
The Competition
One of Hotwire's closest competitors is Priceline.com, best known for its "Name Your Own Price" service that lets customers bid, or name their price, for even deeper discounts on flights and hotel rooms. Like Hotwire, the Web site now functions more or less as a full-service online travel agency.
What Makes Hotwire.com Noteworthy
Hotwire has a reputation for competitive rates and deals that can't be found elsewhere. In 2007, the website was cited by J.D. Power and Associates for ranking highest among independent travel websites in customer satisfaction for the second year in a row. In late 2007, Hotwire announced that it had eliminated its booking fees for both opaque and retail listings on all flights.
A Brief History
Hotwire.com was founded in 2000 by a group of entrepreneurs, in partnership with six major airlines and with funding from the private equity firm Texas Pacific Group. It was bought by IAC in 2003 and was subsequently spun off as part of Expedia Inc. in 2005.
Ownership
Hotwire.com is owned by Expedia Inc. and is based at 333 Market Street, Suite 100, San Francisco, CA 94105.
