so for example say USC finished at 9-4 and WSU finished 10-2 The Holiday bowl can take USC because well I would guess they would draw more and sell more tickets than WSU.
Yes. But from some of the research I did, some bowls have different agreements with the conferences they are aligned with. Basically, in 2010, operation money grab was greenlighted which made it easy for many bowls to grab anyone with a winning record. regardless of where they ended up ranked in their conferences. Sometimes the decision comes down to regional stuff. Other times, it how deep the pockets are and how well the team travels. But say if Texas went 6-6, and were like 6th or 7th in the div, the Alamo bowl would look like a bunch of turds picking them just because the stadium would fill with mostly orange. Not just that, but if they were matched up with the #2 PAC12 team, Texas could get blasted. Sure they want some flexibility because they don't want the same matchups year after year, but with these 1st tier, non-BCS bowls like Alamo, they'll pick teams that usually deserve to be there.
Now the Sugar bowl. Now those clowns are only interested in filling as many hotel rooms and dummies getting fleeced in the French quarter. That's their primary criteria for who they pick from the AQ choices.