Booking Travel Rate Parity

If you decide to distribute on airbnb factor in airbnb s unique commissions to ensure that rates are in parity with your other channels.

Booking travel rate parity. Rate parity is usually part of the agreement signed by hotels when they partner with an ota where hotels are not allowed to undercut ota rates on their own websites. The expedia booking duopoly already dominates digital marketing out manoeuvering many hotels in advertising auctions. It means expedia and other large brands cannot offer an alternative cost to the price on any of their other websites.

The hotelier undertakes to sell his rooms on all distribution channels at the same conditions and at the same price or even at a lower price than of the otas. Why do online users still use these booking engines. In a more specific sense rate parity means the traditional booking engines can no longer offer hotel rooms or any other travel related service at a discounted price.

Hotel rate parity challenges. Rate parity provides consumers the confidence that regardless of which website they prefer to book on they are still getting the best available rate. Hotel rate parity refers to the same rates being provided for the same hotel room across all websites.

While it is considered the cost of doing business the practice of rate parity poses several challenges for independent hotels. Rate parity also known as best price clause is a contractual agreement between hotels and online travel agencies. This protects otas from being undercut by their competitors in the online marketplace.

Rate parity is a legal agreement between hotels and online travel agencies otas in which the hotel guarantees to use the same rate and terms for a specific room type regardless of the distribution channel. What is rate parity. What is rate parity.