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?
Founder | CEO | Futurist
Rate parity is a mirage, and not one worth pursuing unless we evolve from the current, cached-data-based, room&rate distribution ecosystem. And, as I don't see blockchain-based distribution being mass adopted any time soon (for obvious reasons, as undercutting hotel rates is a lucrative practice for pretty much every single player out there), then the whole rate parity' discussion is nothing but the Shakespearean's "much ado about nothing."
As I already wrote, I am not sure what hotel associations had in mind when they imagined a post-parity industry but, so far, outlawing rate parity clauses benefited only distributors (and, osmotically, price check and parity monitoring widgets providers), created a vortex of members' discounts, opaque offers, and B2B2C rates, lack of inventory control, reduced RevPAR, and increased costs-per-guest-acquisition.
So, should rate parity continue to be a best practice in our industry? I think the question needs rephrasing.
Is rate parity achievable in our industry?
If you've read this far, I am pretty sure you already know my opinion...