Priceline's Revenue Recognition policy. Priceline recognizes the selling price of
its ticket sales as revenue, not the commission on the sale. Here is an excerpt
from their 2002 annual report (page 6 of the PDF file):

For the year ended December 31, 2002, we had revenues of approximately
$1.0 billion. Revenues for the year ended December 31, 2002 consisted primarily
of: (1) travel revenue and (2) other revenue. Travel revenue, which represented
substantially all of our total revenue in 2002, consisted primarily of:
(1) transaction revenues representing the selling price of airline tickets, hotel
rooms and rental cars; (2) ancillary fees, including Worldspan, L.P. reservation
booking fees; and (3) customer processing fees charged in connection with the
sale of our travel products. Other revenues consisted primarily of: (1)
transaction revenues and fees from our long distance phone service; (2)
commissions and fees from our home financing and automobile services; (3)
license fees from our international licensees; and (4) marketing revenues.