Hotel rate parity is an essential component in ensuring that your hotel revenue is consistent and that your direct bookings are as lucrative and abundant as hotel bookings coming in from other platforms. Simply put, hotel rate parity is the system of sustaining unvarying prices across all your channels whether it's through OTAs or commissions.
It may seem simple enough, but hotels big and small have encountered difficulties in this area of managing their business. In this article, we'll be giving you a few tips and tricks on how to avoid those mistakes and make sure your direct bookings are always at par with other channels.
Always double check your contracts
Most OTAs require hotel rate parity however, some of them lower their commissions in order to be able to sell rooms at a lower rate. Make sure that all clauses are covered and that no small details are overlooked in your hotel's contract when it comes to rates and adjustments.
Invest in the right hotel technology
Get yourself a channel manager; a channel manager is a software that allows you to monitor and synchronize all your room rates in all your platforms. This also updates availability thus avoiding overbookings.
Improve your booking process
User experience is one of the most important factors in getting guests to choose direct bookings over OTAs. Guests want a smooth experience that is secure and convenient.
Zero in on your target audience
Create a marketing strategy that runs exclusive promos to targeted audiences like your blog readers and social media followers if they choose to book directly through your hotel website.
Offer perks for direct bookings
Give guests more value for their booking if they choose to book directly. Offer perks such as free parking, WiFi, free breakfast or even a day pass for certain activities. Offer your clients a better experience. Keeping an eye out for rate disparities can be a tedious task.
But armed with these simple tips, it will be easier to gain control of your clients' booking preferences and lead them to book directly with your hotel instead of other platforms. Feel free to schedule a (FREE!) demo to discuss how your hotel or resort can increase its direct bookings and reduce its OTA commissions.