World Panel
Viewpoint18 November 2019

Is Rate Parity Good Or Bad For Hoteliers?

Digital Marketing in Hospitality

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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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Simone Puorto
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...

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