19 Jan “No to the equal tariffs imposed unilaterally by intermediary channels”: analysis of the second point of the HOTREC manifesto
2. “No, to the parity rate imposed unilaterally by intermediation channels” (i.e. Expedia, Booking & Co.); hotel managers, publish the lowest rates and most advantageous sales conditions available on the Internet on your official website.
In other words, what does this all mean for me as a hotel manager?
It means that the parity rate is, in the majority of cases, annoyingly imposed on hotel managers by the OTA, leveraging its full strength as a large intermediary and threatening to terminate its agreement with the hotel, so that the hotel is placed in a position of inferiority.
The parity rate is the clause through which a hotel manager agrees to provide a given portal the same rates as on other online distribution channels. Hotel managers are free to formulate their own rates, however once communicated to an online travel agency (OTA), these rates must be the same for all channels used.
Seeing as the OTA does not possess the goods it resells, this clause should be conceded based on the hotel manager’s strategies, without being pressured by an intermediary. However, the Parity Rate always depends on the contractual rules agreed to between the hotel manager and intermediary.
But can I maintain the lowest and most advantageous rates for me while respecting the Parity Rate?
A variety of solutions are possible:
– use the promocode strategy on your website: a promotional code that provides a discount to travelers, formally maintaining the Parity Rate while offering a discount to the end consumer;
Do you have any other solutions or ways of dealing with this situation?
Nozio Business helps hotels balance their relationships with large OTAs, providing customized consulting tools.