hmmm.. good question. Maybe someone knows the right answer 
I think it offers a lot of protection for the hotel and priceline to do it that way. Priceline doesnt have to spend its resources constantly updating web pages of hotel lists every day. Their inventory available from the hotels changes and it would require a search engine in concert with all the hotels, or for priceline to manually update constantly. Also, by making it clear we dont have a choice, they probably have better luck in dealing with complaints when someone doesnt get the hotel they want. The hotel too doesnt lose customers willing to pay the full rate because everyone wont use priceline due to the chances involved... if we positively knew we would get a certain hotel(s) we would be much likelier to bid and wait it out than to call the hotel direct. This way they can put a number of rooms up and look at it as advertising.. or just filling empty rooms that wouldnt be filled otherwise. I say that because I know I am less likely to pay full price for Orlando because I have become so familiar with the hotel choices and bids that are likely accepted. If everyone could do that just by going to a page on priceline they might stop paying the full rate. This is all just speculation on my part of course, but I can see how it makes it simpler for Priceline to do business the way it does.
Sheila
I think it offers a lot of protection for the hotel and priceline to do it that way. Priceline doesnt have to spend its resources constantly updating web pages of hotel lists every day. Their inventory available from the hotels changes and it would require a search engine in concert with all the hotels, or for priceline to manually update constantly. Also, by making it clear we dont have a choice, they probably have better luck in dealing with complaints when someone doesnt get the hotel they want. The hotel too doesnt lose customers willing to pay the full rate because everyone wont use priceline due to the chances involved... if we positively knew we would get a certain hotel(s) we would be much likelier to bid and wait it out than to call the hotel direct. This way they can put a number of rooms up and look at it as advertising.. or just filling empty rooms that wouldnt be filled otherwise. I say that because I know I am less likely to pay full price for Orlando because I have become so familiar with the hotel choices and bids that are likely accepted. If everyone could do that just by going to a page on priceline they might stop paying the full rate. This is all just speculation on my part of course, but I can see how it makes it simpler for Priceline to do business the way it does.
Sheila
