Price parity is an important concept for hoteliers to understand and put into practice. In addition to being a policy that aims to maintain consistency and control over sales prices, it is an agreement between a hotel and its distribution partners – for example, online travel agencies (OTAs) – ensuring that hotel room prices are the same on all booking channels.

NB: This is guide from XLR8 RMS, one of our Expert Partners

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This means that when a customer searches for specific rates for a hotel on any website, brochure, etc., they will see the same prices for the same rooms in all searches.

Price parity is also beneficial for customers. By obtaining consistent prices on all platforms, customers can have confidence that they are viewing the best available offers, a common practice in other industries such as Tesla or airlines. This helps prevent customers from feeling cheated and encourages them to book through the hotel’s website or the channel with which they identify the most.

What options do we have to safeguard our price parity?

From a very pragmatic approach, there are three basic options to take regarding price parity, each with different characteristics depending on the strategy of each hotel:

  1. Absolute Parity
  2. Liberal Approach
  3. Mixed Approach

In this e-book, you’ll discover how rate parity benefits hoteliers by helping maintain a consistent pricing structure across all distribution channels.

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