Hotels,Think You're Cut Out For Doing Rate Parity in 2018?
By Bhanu Chopra CEO, RateGain | April 22, 2018
Rate Parity the most puzzling word in hospitality industry is a cause of stress for many hoteliers; first primarily because of the very fact that a third agency is involved in deciding the price of your own property even on your own website. Secondly, it restricts hotel's free pricing strategy, putting many restrictions on them. Not only this, even penalties for not adhering to them.
The concept of Rate Parity was introduced with the basic objective of protecting the integrity of hotel room rates across different online platforms and offering the guest a consistent experience of booking across all channels with respect to pricing. However, unfortunately things moved beyond this and under Rate Parity Agreements OTAs started restricting hotels from undercutting OTAs and offering discounted rates even on their own websites.
Popularity of OTAs with in the traveller community restricts hotels from un-listing their inventory from the popular OTA channels. OTAs after all have become a very important instrument in the entire online booking process because a major percentage of bookings done online come from OTAs.
Hence, hoteliers are left with no option, but to figure out ways to ensure that these restrictions and agreements under Rate Parity clause do not eat their hard-earned profits.
Few very common techniques to ensure you get a major chunk from your revenue is to get maximum direct bookings. Smart hoteliers use few tips to ensure this. These are shared below:
- Make your brand website booking friendly