World Panel
Viewpoint18 November 2019

Is Rate Parity Good Or Bad For Hoteliers?

Digital Marketing in Hospitality

— 9 experts shared their view

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This viewpoint was created by
Max Starkov, Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
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Frederic Gonzalo
Travel & Hospitality expert. Digital Marketing & Strategy Speaker and Consultant

We can certainly ask if rate parity is good or bad for hoteliers, but do we wonder how customers feel about it? Is there a more annoying thing than researching online for an upcoming trip and seeing 8 different rates come up... for the same hotel? Mind you, this seems like a thing of the past... but  just the kind of thing that has customers in uproar about travel.

If a room at a given hotel is worth $300 on a given night, the rate should be the same no wonder what website you find it on, from OTA to DMO, Google or other meta-search engines. If I book direct, I expect to pay the same price, or perhaps even less. If rate parity is applied, then at least throw in some added value: extra rewards points, complimentary breakfast, high-speed wifi, complimentary access to spa, etc.

So long as everyone plays fairly and respect rate parity, I believe it is a good thing for hoteliers who can then play this to their advantage with direct bookings, with perks and rewards. Problems occur when not everyone plays fairly, of course...

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