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
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Coming up in November 2018...

Architecture & Design: Expecting the Unexpected

There are more than 700,000 hotels and resorts worldwide and the hotel industry is continually looking for new ways to differentiate its properties. In some cases, hotels themselves have become travel destinations and guests have come to expect the unexpected - to experience the touches that make the property unlike any other place in the world. To achieve this, architects and designers are adopting a variety of strategies to meet the needs of every type of guest and to provide incomparable customer experiences. One such strategy is site-integration - the effort to skillfully marry a hotel to its immediate surroundings. The goal is to honor the cultural location of the property, and to integrate that into the hotel's design - both inside and out. Constructing low-impact structures that blend in with the environment and incorporating local natural elements into the design are essential to this endeavor. Similarly, there is an ongoing effort to blur the lines between interior and exterior spaces - to pull the outside in - to enable guests to connect with nature and enjoy beautiful, harmonious surroundings at all times. Another design trend is personalization - taking the opportunity to make every space within the hotel original and unique. The days of matching decor and furniture in every room are gone; instead, designers are utilizing unexpected textures, mix-and-match furniture, diverse wall treatments and tiles - all to create a more personalized and fresh experience for the guest. Finally, lobbies are continuing to evolve. They are being transformed from cold, impersonal, business-like spaces into warm, inviting, living room-like spaces, meant to provide comfort and to encourage social interaction. These are a few of the current trends in the fields of hotel architecture and design that will be examined in the November issue of the Hotel Business Review.