Is Rate Parity Good Or Bad For Hoteliers?
— 9 experts shared their view
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?
Rate parity is good for hotels. If hotels are still in a position to enforce it, then they should. Without it OTAs now have the freedom to cut into their own commissions when necessary in order for them to maximize their chances for guests to book on their site/app.
This is already happening and with all the ressources and data points that OTAs have access to, they are in a very good position to know when to adjust the rates to capture a guest.
OTAs have been doing it for a while even with rate parity in place but without it they'll be able to do it at a much different scale which ultimately will hurt the hotels.