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 September 2018...

Hotel Group Meetings: The Need for Speed

2017 was a banner year in the Hotel Group Meetings marketplace and that trend is expected to continue throughout 2018. Planners are experiencing a renewed sense of confidence due to a reinvigorated economy and increased job creation, which typically provides a boost in corporate meetings. Given this promising outlook, planners are maintaining a fast and furious pace, and they are utilizing an array of technologies to speed things up. For example, planner requests and proposals are expected to be turned around quickly; the mantra seems to be “as soon as possible, or sooner!” To that end, the use of electronic Request for Proposals (eRFPs) to source hotels and venues has increased in recent years, bringing many timely benefits to the Meetings industry. As a result, in order for hotels to attract and book meetings, they have to be willing to operate with a sense of urgency, which is the new baseline for success. Once on property, the need for speed doesn't diminish. Poken is a cloud-based event management platform, which enables attendees to easily and quickly connect, network and share contact info. ClickShare is a wireless presentation system that permits others in the meeting room to share their laptop with the presenter screen at the push of a button. Skype is useful in order to engage with remote participants in real time, and dedicated apps are being routinely used to drive registration and communication before, during and after a meeting. Finally, text messaging is replacing emailing and phone calls simply because it's quicker. The September Hotel Business Review will examine issues relevant to group meetings and will report on what some hotels are doing to promote this sector of their operations.