Posted on: Tuesday, May 14, 2002

Priceline.com expands offerings

By Greg Wiles
Bloomberg News

Norwalk, Conn. — Priceline.com Inc., the third-largest U.S. Internet travel company, is expanding into vacation packages to diversify its business, which has been hurt by declining airline-ticket sales.

Beginning yesterday, customers can buy vacation packages — air travel and hotel stays — in the United States, the Caribbean, Mexico, Europe and Canada on Priceline.com's site, the firm said.

Priceline.com is seeking to supplement revenue from its services, including car rentals and airline bookings. Sales of airline tickets fell 19 percent in the first quarter.

The company earlier this year joined with eBay Inc. to offer travel services through the Internet auctioneer's site. In February, it formed a partnership with National Leisure Group Inc. to sell cruises.

Most of Priceline.com sales are through a so-called "opaque" pricing system in which customers propose an amount they'd be willing to pay. Details of the booking, such as flight time or airline, aren't revealed until the purchase is made.