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Prodigy, Priceline Form Alliance

Priceline.com Inc. customers will soon have an extra edge as they name their price for leisure airline tickets or hotel rooms, when they sign up for Internet access from Prodigy Communications Corp.

Prodigy (PRGY) and Priceline.com (PCLN) Tuesday teamed to introduce an innovative customer acquisition model for Prodigy that allows priceline.com customers to enroll in the Prodigy Internet service, while earning extra money toward the purchase of their priceline.com airline tickets and hotel rooms.

David Trachtenberg, Prodigy president and chief operating officer, said the national ISP was breaking new ground by building their subscriber base with Price.com

"Priceline.com and Prodigy are natural strategic partners, we're both the number two recognized brands in e-commerce and Internet service, respectively." Trachtenberg said.

"Priceline.com has over 3 million unique customers and the potential to deliver incredible value and convenience to our Prodigy Internet members," he added.

Daniel H. Schulman, Priceline.com president and chief operating officer, said Prodigy shares their mission to develop innovative programs that deliver added value services to their our customers.

"By contributing dollars to our customers' airline ticket and hotel room offers, Prodigy enables Priceline.com to attract even more customers and make it possible for those customers to get tickets and rooms at their price," Schulman. "In addition, these customers will experience one of the country's leading Internet services in Prodigy Internet."

Under the agreement, Prodigy will add dollars to a priceline.com customer's purchase when they enroll in the Prodigy Internet service. The additional money increases the likelihood that an airline or hotel will accept the customer's offer at no cost to the customer.

Priceline.com plans to leverage Prodigy's proprietary registration process, which allows a priceline.com customer to enroll immediately in Prodigy and receive an instantaneous credit applied toward their offer.

The two companies also plan to offer priceline.com specials to current Prodigy Internet members.