The new "App" from Hotels.com is not really an app at all, but just an iPhone optimized website with an iPhone app wrapper. You would think that Interactive Corp, the large Barry Diller controled parent of Hotels.com would allocate sufficient resources to produce a decent iPhone version of their (excellent) Hotels.com service. You would think.
Instead, the Hotels App is just a location aware version of the hotels.com website, specifically designed to find "hotels near me". Admitedly, you do have access to the hotels.com database; but there are clear flaws with this "app" - in particular it does not default the reservation date to "today", so every time you pull up an individual hotel - it says that its unavailable.
You can go arround this, by manually entering your date and location -- so the app is in fact useful if you are on the road and need a place to stay, but it could be a lot better