Is Rate Parity Good Or Bad For Hoteliers?
— 9 experts shared their view
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Some industry professionals have declared rate parity "dead". Some European countries have de facto outlawed rate parity in recent years. Yet, all major hotel chains strictly enforce rate parity for all publicly available rate. A number of industry experts believe that rate parity benefits hoteliers more than the OTAs and cite case studies from Europe that clearly show that the only beneficiaries of the removal of rate parity were the OTAs. Should rate parity become obsolete or should it continue to be a best practices opponent of hotelier's revenue management strategy?
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...