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
Aymeric Erulin
Multi-Property Revenue Manager

If rate parity becomes obsolete (legally), maybe the players with the strongest direct channels could afford the luxury of having different prices between their channels. But let's be realistic, for most of the hotels and their dependency on OTA's business, the goal will be to maintain a good display ranking. Today, to have the best ranking, hoteliers pay more commission. Tomorrow hotels will still pay more commission but also only be pushed if planning and pricing are loaded identically to their direct channels. So, even though hotels are legally allowed to drop rate parity, this will hardly happen due to the fight between hotels to get the best ranking and get more business.

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