There are two main types of filtering interfaces:
Which approach to use often comes down to data and performance issues (sometimes dynamic filtering isn't feasible or advisable from a technical standpoint, particularly where users are likely to select multiple filtering criteria).
Endless Shoes and Handbags is an example of dynamic filtering; Hotels.com employs user-initiated filtering.
Interestingly, Tripbase gives the user a choice. By default, the site uses dynamic filtering. But users can override that default by de-selecting the "auto-submit" option.