Advantages of Rate Parity

Rate parity can be defined as maintaining consistent room rates for the same product in all online distribution channels (including hotelier’s own website), regardless of what commission the OTA makes.  Rate parity therefore ensures a level playing field amongst all distribution channels and protects a hotel’s relationships with its partners, as no channel is being favored over another one. Rate parity can also allow hotelier to evaluate its partnership with an OTA within a given time frame and allow them to make conclusions as to if and how the hotel should continue a business relationship with a given OTA. As rate parity brings a transparency in pricing, it boosts the confidence of the traveler in getting a standard service regardless of the channel the booking is undertaken from.

Rate parity helps building customer loyalty and encourages them to book direct for they would not find any advantage in booking through via a third party OTAs and channel partners. This translates into increased bottom line as there is no sharing of commissions with distribution channels.

In order to implement rate parity, the hotelier constantly needs monitor prices on different channels and take corrective actions. With some of the leading channel partners further distributing the inventory to OTAs they may have different price points by way of markups / discounts. Tracking all of them by self is time consuming and exorbitant. We at ITSYS Solutions are able to monitor thousands of channels and OTA sites (both regional and global) at a fraction of the cost you as hotelier is likely incur and provide you user friendly reports in spreadsheet formats that would allow you take corrective action immediately and ensure rate parity.