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Latest News

Wednesday, October 07, 2015

Are hoteliers ready for post-rate parity era?

There has been a lot of talk in the press and discussion forums about the "fall” of rate parity in Europe and its implications.

Most of the new rules and proclamations in Europe thus far concern Most Favorite Nation (MFN) clauses in the hotel-OTA agreements. In the case of France, a new “rate parity” law was adopted in August, which directly affected the rate parity clauses in the hotel-OTA agreements in this country, and most probably will have Pan-European repercussions as well.

I believe one of the reason for the confusion about what exactly is happening and has happened in Europe is that the analysts and editors are mixing two completely separate issues: Most Favorite Nation (MFN) and Rate Parity.

Most Favorite Nation: this is historically the contractual requirement by Booking.com in Europe that a hotel cannot give a lower rate to another OTA. This MFN requirement does not exist here in the U.S. and Booking.com and Expedia both take advantage of various exclusive deals a hotel extends to them based on the property’s business needs. The 24-hour exclusive sales on Expedia fall into this category.

Rate Parity traditionally means maintaining the same publicly available rate for the same room/same stay across all public distribution channels. Rate Parity is not a new online policy specifically designed for the OTAs. It existed long before the "commercial internet" came into being and there was only one reason for its existence: it made revenue management and management of distribution channels much easier. All major hotel chains and smart hoteliers applied rate parity across all offline distribution channels: voice, walk-ins, GDS/brick-and-mortar travel agents, etc. With the advent of the online channel, this business policy was applied to the hotel website and the OTAs as well. Read More »

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Hotel Blog

Wednesday, September 30, 2015

Travel Agents Report Record Use of GDS, According to New TravelClick Study

Advertising on the GDS opens doors for hoteliers Read More »

Read more on Hotel Blog


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Booking Tips

Ensure that your GDS rates are in parity - if you are selling rates cheaper on public websites, this will significantly affect reservations through the Navarino GDS/IDS booking system, as clients will go elsewhere for the cheapest rate. Travel Agents rely on being able to source the best rates for their travellers, and if your hotel is found to be out of parity on GDS this will significantly damage their willingness to book your property on future occasions.

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