> But reputable hotels don't resort to that since that attracts price sensitive guests that aren't desirable anyway, such as prostitutes and drug dealers.

Maybe at the 1 or 2 star level, but every other hotel on the planet secretly loves the price discrimination that Priceline and Hotwire offer.

You won't see a $1400/night boutique hotel on there, but a $300/night place will offload for half the price if they're relatively unbooked.