Why is ensuring the rate parity in online channels is important?

The rate price/parity issue in your online sales channels is one of the factors that affect your online booking volume negatively. Most of the time, your rooms in are offered for booking by travel agents or third-party sales channels at a lower cost. In this case, the online channels you are working with to increase your profit margins become a disadvantage for your property due to the parity differences.

Why is rate parity important?

You reduce your chances of getting direct bookings when you offer your inventory on your own website and your other direct channels at a higher price than your travel agent. Furthermore, you may lead to a loss of confidence by creating a perception that it is more advantageous for guests to book on different online channels.

Why does parity differences occur?

The campaign or discount that your OTA creates directly on its own Extranet may not be valid on your website.

Your property may have a rate code that is still active on your OTA but is not actually in use.

Your OTA may not have updated the rate given to them, depending on technical or other reasons. This rate may be applied to the whole calendar or specific geographical areas.

Your OTA may be using a different currency conversion rate than you use at your property.

Special rates for bulk reservations may have been set by your OTA and these reservations may have been made available for booking by third-parties.

With HotelRunner you can easily avoid any rate parity issue that can arise by checking your prices on different online sales channels. Thanks to the HotelRunner Two-Way Channel Manager, you can feed your sales channels simultaneously and completely eliminate the risk of a rate parity issue.

Click here to open your HotelRunner account, avoid any rate parity issues, and increase your online booking volume!

Cihan Coşkuntuncel

Director of Sales and Business Development

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