EXHIBIT A
1. Rates. (a) Hotel shall make competitive rates available to Priceline through the Designated System (as defined below) for reservation by users of the Travel Services selected in Section 1 of the Property Participation Agreement. All Travel Service rates shall be loaded by Hotel into the Designated System, using the appropriate Priceline plan codes. Hotel shall be responsible for the accuracy of all information loaded into any Designated System. In the case of Hotels that provide Travel Service rates through the Priceline Extranet via a third-party channel manager (a "Channel Manager Property"), the "Designated System" shall be the Priceline Extranet; and in the case of all other Hotels, unless otherwise designated by Priceline, the "Designated System" shall be the Worldspan SecuRate Hotel Program for Opaque Service and Packages Service rates and Pegasus for Merchant Service rates. Channel Manager Properties shall be responsible for any rate or other issues resulting from any error or issue between the Channel Manager Property and the channel manager or on the part of the channel manager acting for the Channel Manager Property. For the sake of clarity, as between Priceline and the Hotel, the Hotel shall be solely shall be responsible for the accuracy of all information provided to Priceline by the channel manager, and Priceline shall be entitled to look solely to Hotel, and not to a channel manager, for recourse in the event of such an error or issue, even when such error or issue is solely the fault of the channel manager.
(b) Rates for the Opaque Service and/or the Packages Service, as the case may be, shall be lower than Hotel’s lowest non-qualified rate and equal to or lower than any rates provided to any other travel website that makes rooms available in an opaque manner (in the case of rates for the Opaque Service) and/or packaged with another product or service (in the case of rates for the Packages Service).
(c) Without limiting the foregoing, Hotel shall make Merchant Service rates available to Priceline at a discount equal to or greater than 20% below Hotel’s lowest published non-qualified rate. Furthermore, Merchant Rates shall be made available to Priceline at prices, discounts and availability (including without limitation, room types) that are equal to or better than those made available by Hotel to any other Internet travel channel (mobile, desktop or other), including Hotel’s own website (each, a "Competitive Site"). In the event that Hotel provides more favorable discounts or commission percentages to a Competitive Site, then Hotel shall offer the same discount percentage equal to or greater than the discount or commission percentage provided to such Competitive Site.
(d) With respect to Channel Manager Properties, Priceline will transmit reservation details to Hotel through the Priceline Extranet so long as Hotel has the technical capability to receive such information in such manner (i.e., Hotel is participating through a “two-way” interface). If Hotel does not have such ability (i.e., Hotel is participating through a “one-way” interface), then Priceline will transmit reservation details to Hotel by email, and Hotel shall confirm such reservations through the Priceline Extranet within twenty-four (24) hours of receiving such email. However reservations transmitted for same day and next day arrivals should be confirmed within one (1) hour of receiving such email. Failure of any Hotel participating through a “one-way” interface to confirm such reservations through the Priceline Extranet shall not relieve such Hotel of responsibility for honoring such reservation.
(e) Hotel may elect to make discounted rates available to Priceline for distribution through one or more of Priceline’s private sales programs, which may include, but are not limited to, mobile exclusive rates, same night rates (currently marketed as “Tonight Only”), closed user group rates and other special and/or promotional rates (the “Private Sales Program”). Rates made available through the Private Sales Program may be dedicated Private Sale rates, Merchant Service rates, Opaque Service Rates or Package Service rates. Participation in any of the Private Sales Programs shall be deemed participation in the Travel Services. Hotel may determine in their discretion any reasonable restrictions that apply to rates provided through the Private Sales Program, and such restrictions shall be loaded into the Designated System along with the rates as provided in Section 1(a) above, provided, however, that rates provided to Priceline for the Private Sales Program shall be at prices, discounts and availability (including without limitation, room types) that are equal to or better than those made available by Hotel to any Competitive Site.
2. Rooms. The accommodations made available by Hotel through the Travel Services shall be non-smoking preferred (unless otherwise requested), minimum double occupancy and of the same or higher quality as rooms being made available to the general public. Hotel shall return appropriate rates through the Designated System as transmitted by Priceline in the availability request. Hotel shall ensure that the availability of accommodations (including, without limitation, room types) in the Travel Services is equal to or greater than the accommodations (including, without limitation, room types) made available by Hotel to any other travel website that makes rooms available in an opaque manner, packaged with another product or service, such as an airline ticket, or on any non-qualified rate, as the case may be. Hotel will honor room type as booked in reservations for the opaque service.
3. Payment. Priceline will provide Hotel with a unique credit card to charge for each individual reservation booked through the Travel Services. The unique credit card number will be transmitted by Priceline for each such reservation and this shall serve as Priceline’s authorization for Hotel to charge such credit card (no further authorization will be provided). Hotel shall only apply charges to such unique credit card for the room rate and government-imposed taxes for the specific corresponding reservation. Hotel shall charge the unique credit card in the same currency as the Hotel filed the room rate and government-imposed taxes. For Merchant Service reservations, Hotel shall charge the unique credit card no earlier than 48 hours prior to check-in. If Hotel fails to charge the appropriate Priceline credit card within 180 days after the customer’s checkout, the credit card will be deactivated and Hotel shall not assert any claim against Priceline with respect to that reservation. Hotel shall not bill any customer for a Travel Service reservation. Any improper use of unique credit card that is not consistent with payment policy will result in a chargeback by Priceline to Hotel. Hotel shall not remit commission payments on bookings made through the Travel Services, and any commissions so remitted will not be refunded. In addition, Priceline will provide the necessary details for each Travel Service reservation to Hotel electronically via the applicable Designated System.
4. Guaranteed Availability. Travel Service reservations are pre-paid reservations and Travel Service customers shall be guaranteed availability upon arrival for the number of rooms and occupancy requested in the reservation sent to Hotel through the Designated System. In the event that a reservation booked through the Travel Services is not available for any reason, Hotel shall immediately (a) notify Priceline of such unavailability, (b) locate alternative accommodations of equal or higher Star Quality within the same Geographic Zone and (c) bear any and all costs associated with relocating the customer to such alternative accommodations including but not limited to, room and tax for the first night, any transportation costs necessitated by the displacement of the customer and any rate differential from the original rate booked. In no event shall Hotel relocate a customer to another property if Hotel has a room available at any rate. If a customer arrives at Hotel after the check-in date, but prior to the check-out date, and Hotel has a room available, Hotel shall accommodate the customer for the remainder of the original reservation. The customer shall not be entitled to a refund for any portion of such reservation. If Hotel is sold out, Hotel shall not be entitled to payment from Priceline or the customer for any date after the customer attempted to check-in. Determination of each Hotel’s quality level (“Star Quality”) and mapping location (“Geographic Zone”) for purposes of the Travel Services shall be made by Priceline in its sole discretion.
5. Taxes and Fees. Priceline stores applicable government tax rates, including occupancy tax rates, in its hotel database for the Travel Services. Hotel shall be responsible for providing Priceline with updated tax information on an on-going basis, as well as an accurate calculation of any Hotel-imposed mandatory fees. Hotel shall not collect local taxes and occupancy taxes from Travel Service Customers, and shall charge the Priceline credit card for applicable government-imposed taxes. If applicable, Hotel shall continue to collect any resort fees or other types of unique fees directly from customers unless otherwise notified by Priceline.
6. Cancellations. Priceline shall have the right to cancel reservations made through the Travel Services in extraordinary circumstances defined by Priceline, such as family death or natural disaster. If an Opaque or Package Service reservation is canceled due to extraordinary circumstances, Hotel shall be entitled to retain payment for the first night of the reservation only, and shall promptly refund Priceline for the amount of any remaining nights. Merchant Service reservations are subject to cancellation penalties and are non-transferable/non-changeable. Hotel shall not change dates or cancel any Merchant Service reservation unless directed otherwise by Priceline. Requests by Merchant Service customers to change or cancel a reservation shall be directed to Priceline or the website through which such reservation was booked. Individual Merchant Service reservation cancellations must be received a minimum of twenty-four (24) hours prior to the arrival date in order to avoid cancellation penalty. Cancellations received within 24 hours prior to 12:00 pm local hotel time on day of arrival are subject to the first night’s room and tax charge, which shall be charged to the Priceline-provided credit card on which the reservation was billed. In the event that a Merchant Service reservation is cancelled due to extraordinary circumstances defined by Priceline (such as family death or natural disaster), Priceline may elect to refund the Merchant Service customer in full and Hotel shall not be entitled to payment for such Merchant Service reservation. Notwithstanding the foregoing, Hotel shall ensure that each cancellation policy applicable to reservations generated through the Travel Services is at least as favorable as the cancellation policy applicable to reservations generated through any Competitive Site.
7. Other Hotel Obligations. (a) Hotel shall ensure that all front-desk, reservation and accounting personnel are properly informed and familiar with the Travel Services, and shall implement and adhere to Priceline policies set forth in the most recent version of the standard operating procedures provided by Priceline. Hotel shall bear responsibility for any improperly handled Travel Service customers. In the event Hotel is closed (due to sale, renovation or otherwise), Hotel shall ensure that all remaining future Travel Service reservations are honored by a nearby hotel of equal or higher quality. Hotel shall notify Priceline in advance of any flag, brand or management changes, and shall ensure that any advance deposits or future Travel Service bookings are carried over to the new owner’s property management and central reservations systems. Hotel shall ensure accurate hotel descriptions, images, amenities, facilities and other content are loaded into the Pegasus content database. Hotel shall not charge any penalty for system errors. Hotel shall not disclose underlying rates to customers.
(b) Channel Manager Hotels shall implement connectivity between Hotel and the Priceline Extranet via Hotel’s third party channel manager service, including without limitation, the initial set up of correct mapping and rates. Channel Manager Hotels shall ensure that promptly after the Effective Date, the applicable Hotel personnel receive instruction and training such that such personnel are familiar with Hotel’s third party channel manager service and the Priceline Extranet features and functionality (such as loading rates and availability). Channel Manager Hotels shall not be eligible for activation in the Travel Services until such time as such employees have received such training. Channel Manager Hotels shall not initiate any significant change to the way Hotel connects to the Priceline Extranet through Hotel’s third party channel manager service, without first providing at least sixty (60) days prior written notice to Priceline.
8. Termination. Priceline may terminate Hotel’s participation in the any Travel Service at any time and for any reason. In the event of termination of Hotel’s participation any Travel Service, Hotel shall honor, in accordance with this Agreement, all reservations made through the Travel Services prior to the effectiveness of such termination.