Rate Parity

What is the definition of Rate Parity within the hotel industry?

All individual hotels and hotel chains should pursue to produce a positive affective commitment towards their brand. But loyalty felt by guests can, of course, take time to make up. One great way to foster allegiance over time is to make Rate Parity into a pricing structure. In fact, a revenue management team that fails to recognise the benefits of Rate Parity is making a mistake and can re-evaluate. Why? Well, let’s begin answering that by explaining more what Rate Parity actually is, before moving on to giving a transparent example…

Simply put, Rate Parity could also be how for an independent hotel or a sequence of them to line the same price for each of their room types across all of their distribution channels. it’s over these channels that rooms and services are promoted (through the hotel’s brand site, on Social Media stages, via main street and online travel interventions etc.). If there’s uniformity of rates across all channels, that conveys consistency. It also means there is no need for prospective guests to make their reservations anywhere else but directly with the hotel itself, meaning that the hotel won’t earn less money from the reservation through having to lose a percentage of the fee to a special channel.