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?

Scott Dahl
Scott Dahl
Program Director, Master’s Degree in Hospitality Strategy and Digital Transformation at Les Roches Global Hospitality Education
Peter O’Connor
Peter O’Connor
Professor of Strategy at University of South Australia Business School

Rate parity benefits no one and should have been euthanized a long time ago.  Enforcing it ignores each channels' cost of distribution; causes ill-feeling between distribution partners and limits competition resulting in unwelcome scrutiny from competition authorities.  Let's use the excuse of new and pending legislation to place rate parity where it really belongs - in the trash can!

Larry Mogelonsky
Larry Mogelonsky
Managing Director Hotel Mogel Consulting Limited

The age-old question of rate or channel parity. My goodness, get over it! OTAs have been able to alter their rates through short term promotional discounts and loyalty activities. Wholesalers offer a blend with airfare and activities to create opaque rates. Hoteliers need to look at net rates and decide the best approach for each channel and for their specific market needs. Revenue managers need the freedom to create a rate structure that best serves their business goals. If this means bending the rules (so to speak) of rate parity, so be it. Long live the freedom to build the business without the shackles of rate parity, because it just doesn't work.

Simone Puorto
Simone Puorto
Founder | CEO | Futurist
Max Starkov
Max Starkov
Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Frederic Gonzalo
Frederic Gonzalo
Travel & Hospitality expert. Digital Marketing & Strategy Speaker and Consultant
Aymeric  Erulin
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.

Nadim El Manawy
Nadim El Manawy
Co-Founder / CEO at Arise Travel
Mark Fancourt
Mark Fancourt
Co-Founder at TRAVHOTECH