EZYield.com Solves Hotel Rate Parity Challenges with Advanced Markup Engine Technology and Companion Reporting Tool
Proprietary distribution technology simplifies the execution of multi-channel online revenue management strategies for global hotel clientele
A 2008 study that addressed hotel online distribution and competition stated, “Overall, United States properties had consistent rates across all channels in 66 percent of the cases relative to only 16 percent of their international partners.” This inability to be consistent across all channels makes it difficult for hotels to control rate parity and effectively manage their yield.
Rate parity is defined as offering the same sell rate across all channels that are accessible to consumers. The challenge for revenue managers is that online channels charge varying commissions and fees for bookings made through each website or call center. In addition, revenue manager’s pricing structures must take into account any special discounts or offers, different room types and features, and seasonal rates that change monthly or daily throughout the year. Therefore, the management of sell rates and the allotment of inventory to contracted distribution channels must be maintained on a continuous basis in order to achieve rate parity. With hotels now struggling to maintain occupancy levels with deeply discounted rates in many markets, the ideals of rate parity have come into question.
“When we created EZYield.com over seven years ago, we began to directly address the rate parity question for hoteliers,” stated Ed St. Onge, president of EZYield.com. “Rate parity can be a real challenge because of the matrix of variables that exist in offering rates to a specific channel. This is mainly due to the different commission rates offered by the websites. Our advanced markup engine and Companion Report features directly address the ‘pushing’ of calculated consumer rates to forward distribution channels and the ‘pulling’ of listed sell rates to homogenize pricing strategies.”
EZYield.com’s advanced markup engine calculates each channel’s commission or fee structure automatically so that revenue managers always know what their net rate is, versus the sell rate they’re “pushing” to consumer websites. Other channel management solutions use a single bucket approach that does not differentiate between channels. EZYield.com’s system allows hoteliers to take cost of distribution into account when making critical revenue decisions on where inventory goes.“I use the advanced markup engine quite a lot and it does save countless amounts of time,” stated Lissette Reyes, the e-Commerce coordinator of a 2,200-guestroom, attractions-based Orlando resort. “The real value with the advanced markup engine is in dealing with multiple room types with multiple features. It can become quite complicated, but EZYield.com makes it incredibly simple.”
With Companion Reports, it can ”pull” the yielded rates and inventory on all channels so revenue managers can identify mistaken allocations or update rates and inventory.
“I review the Companion Reports daily and they are a great tool to have for data collection and identifying trends,” stated Stephanie Balaz, managing partner of South Beach Group Hotels, Inc. “The features their system provides are functional and efficient and that makes my yielding responsibilities more organized and cohesive as we look to achieve rate parity for our properties.”
As hotel companies move to further automate the yielding process and achieve rate parity, EZYield.com will continue to implement technological solutions that meet their growing challenges. For more information, please contact EZYield.com sales at +1 407.629.0900 (press 1), email email@example.com or visit .
About EZYield.com | Since introducing the world’s first automated channel management solution in 2002, EZYield.com has remained the undisputed leader in online distribution technology for the global hospitality industry. Today, over 2,500 hotels in 65 countries utilize EZYield.com’s advanced channel management software to streamline the distribution of rates and inventory to 450 forward distribution channels in multiple languages and 168 currencies. EZYield.com's ASP web-based platform and mobile friendly solutions are designed to give control of online distribution back to the hotelier, with products dynamic and flexible enough to satisfy properties ranging from 40 to 4,000 rooms. EZYield.com maintains regional offices in Asia Pacific, Europe, Middle East and the America's, in order to provide continuous live support to their clients around the world. For more information, please visit .
Phone: 407-629-0900 x16