Rate disparity is a direct threat to your hotel’s revenue, its hard-earned brand reputation, and the very viability of your direct booking channel.
NB: This is an article from Lighthouse
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While a certain degree of rate fluctuation is an accepted reality in the dynamic hospitality market, a persistent disparity signals a fundamental flaw in your pricing strategy. It creates confusion, fosters mistrust, and ultimately funnels your hard-earned profits into the pockets of someone else.
The good news? You don’t have to simply sit back and watch your bookings evaporate. When faced with rate disparity, you have powerful tools and strategies at your disposal to regain control, restore guest confidence, and significantly boost your direct reservations.
The 7 winning strategies
Strategy 1: Benchmark and monitor for rate leakage
You simply cannot fix what you cannot see. The first, and arguably most crucial, step in combating rate disparity is to gain complete visibility into your pricing landscape.
This isn’t about spot-checking a few major sites occasionally; it requires a deep, continuous, and analytical audit of your distribution channels.
You need to understand not only if disparities are occurring but also where, when, and how often. Are they seasonal? Tied to specific dates or events? Do certain OTAs consistently undercut you? Are they popping up in particular geographic markets?
Dig into the analytics, drill down on booking types, and compare your disparity frequency and amount against your competitive sets. This competitive intelligence will help you understand patterns, identify root causes, and provide a clear action plan for where to focus your efforts.
Strategy 2: Own your pricing with a Best Rate Guarantee
While OTAs play an undeniable and often valuable role in your hotel’s overall distribution strategy, your official website, Brand.com, should always be the undisputed source of truth for your best available rate.
Make this abundantly clear to your potential guests, and make it an ironclad promise. A BRG is far more than a marketing slogan; it’s a powerful statement of confidence and transparency.
It assures your guests that they will not find a better price for the same room, on the same dates, anywhere else. This commitment builds immense trust, providing them with a compelling reason to book directly with you without fear of missing out on a better deal.
