Europe Parity Performance: Where does your city stand?

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. September 17, 2015

MUMBAI, INDIA. - September 17, 2015. - This is the 2nd part of an exclusive 7 part series that takes a look at how top cities in various regions have performed in terms of rate parity. The first six parts will look at trends in each of the below regions:

1) APAC

2) EUROPE (This part)

The last part of this series will feature an in-depth comparison between the performance of these 6 regions and a check on the impact if any of rate parity being abolished in France.

Part 2: RateGain's Top European Cities Parity Performance (August 2015)

Is a full blown price war brewing in Europe with France abolishing rate parity (read France Rate Parity update here ) and other countries considering following suit? A look into where major cities in Europe stood in August in terms of rate parity gives a good sense of what is coming in the near future.

The degree of rate parity observed for European hotels between their brand web-sites and the OTAs is at the lower end of the spectrum compared to what we saw for Asia last week ( Read Asia report here ) A whooping 83% of the rates across 3 to 5 star category hotels were not in parity compared to a mere 40% in Asia. Rome and Amsterdam seem to be the worst hit with only 5% of the rates in parity while Madrid is the most disciplined with 48% of rates in parity.

The trend of hotels being cheaper on the OTA sites in Europe dominates this report with 52% hotels in the 3-star category, 57% in the 4-star category and 50% in the 5-star category being cheaper on the OTA site VS 23%, 19% and 18% respectively being cheaper on the brand site.

The price war seems to be most prominent in Rome, Venice, Amsterdam and Barcelona where over 30% of the hotels are offering cheaper rates on their brand site.

Did you notice?

1. Unlike Asia, all three segments in Europe follow a standard trend in terms of % of hotels being in parity, % of hotels being cheaper on brand site and % of hotels being cheaper on OTA site. Hence, there seems to be more predictability in Europe compared to Asia.

2. While Paris is holding tight in the 5-star segment, it seems to be immensely competitive in the 3-star and 4-star segment.

3. 5-star category in Barcelona is the only segment across all segments where hotels dominate the market with fewer OTAs being cheaper. This is not seen for any other city in any of the categories.

RateGain specializes in competitive price intelligence and price optimization solutions for hotels, online travel companies and airlines. It currently tracks more than one billion hotel rates every month across countries in US, Europe, Middle East, Asia and Latin America.

The above data is indicative in nature and RateGain can't be held liable for its accuracy or usefulness for any purpose.

About RateGain

RateGain is a leader in hospitality and travel technology solutions for revenue management decision support, rate intelligence, seamless electronic distribution and brand engagement, helping businesses around the world streamline their operations and sales. The company serves more than 5,500 customers, including independent hotels, chains and brands, as well as online travel agents, wholesalers, tour operators, car rental providers, airlines, cruise lines and other e-retail clients. Founded in 2004, RateGain is headquartered in Noida, India, with offices in Spain, the United Arab Emirates, the UK and the U.S. For more information, please visit www.rategain.com.

Media Contact:
Vikram Bahl
RateGain
vikram.bahl@rategain.com
+91 120 4975700 extn 271
Skype: vikrambahl
Twitter: @RateGain
Americas: +1 312 238 9880
Europe: +44 (0) 20 337 191 13
Asia: +91 120 4388300
www.rategain.com