RateGain, the leading hospitality & travel technology Company, released this week's Hotel Pricing Trends and Hotel Rate Parity report. A single window BI dashboard, which enables revenue professionals on cheapest rate visibility, tracking hotel rate parity along with median rate for three (3) months of three, four and five star hotel category across some of the major cities in US region.
Data range spans across Sept to Nov 2013, starting from the first week of Sept (all rates in US dollars and for two adults on one-night stay).
In Price Trends report Rate Lowest rate trends over the three months from September to November are generally flat or slow a slight upward movement in all categories. The exceptions are Miami and Orlando for 5-star and Los Angeles for 4-star where the lowest rates are trending upwards in October and November. Median rates across all categories are also mirroring the relatively flat trend although in New York the median rates in the 3-star and 4-star categories spike noticeably higher in October. As noted in previous reports, the widest range of rates (shown by the difference between minimum and median numbers) is seen in Chicago, Los Angeles, Toronto and Vancouver. Predictably, New York leads the way in terms of rate range with 4-star hotels offering a minimum of $205 and a median of $495 in November followed by Philadelphia where the range runs from $112 to $273.
In Parity Trend report The level of rate parity between hotel websites and OTAs is noticeably higher than previously for many of the locations covered by the report, which is for the period from September to November 2013. In Los Angeles, Miami, Montreal, Toronto and Vancouver hotels have the lowest levels of parity for the 3-star category; conversely in Houston and Seattle more 60% of hotels in all categories are in parity. Chicago also shows rates in parity at more than 50% of 4-star and 5-star hotels. The largest proportion of the cheapest rates was to be found on the OTA sites in Toronto, Montreal and Vancouver; brand sites are also showing a proportion of the cheapest rates in Vancouver but this is not a generally reflected trend. The report shows that OTAs may no longer be reinforcing consumer behaviour in the direction of finding the cheapest rate and parity agreements are continuing to have an effect; the legal challenges being made to rate parity agreements in some parts of the world may lead to a reduction over time in the measured levels of rate equivalence through different channels.
NB: RateGain specializes in competitive price intelligence and rate shopping solutions for hotels. It currently tracks more than one billion hotel rates every month across countries in US, Europe, Middle East, Asia and Latin America.
NB2: The above data is indicative in nature and RateGain can't be held liable for its accuracy or usefulness for any purpose.
RateGain is a leader in hospitality technology solutions for seamless electronic distribution (channel management), revenue management decision support and brand engagement (reputation to revenue conversion) helping customers around the world to streamline their operations and sales. Since its inception in 2004, RateGain's expertise in innovating solutions for the dynamic hospitality ecosystem has resulted in continuous growth and an established position as a thought-leader and trendsetter in the marketplace. For more information, visit www.rategain.com