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Priceline for London hotels

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I have never used Priceline - my GUESS is that is would be good for last minute deals but for planning a trip to a big city - why would the hotels want to pre-sell rooms at a discount esp. during regular season? Anyways we are going to London in Sept. (after the Olympics) with two other couples. One of the couples believes they can get a good deal on Priceline for $150 USD?! I have found a nice hotel for about $250 per night - I know I could pre-book that hotel and then wait and see how the Priceline plays out but that doesn't seem quite right to the hotel I am booking up.

I am looking for feedback from this board as to whether in your experience, Priceline has lived up to its hype. Thanks!

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