News for the Hospitality Executive
Rate Parity vs. Rate Integrity—What is Rate Integrity?
By Jean Francois Mourier
October 14, 2010
Rate parity and
are both practices hoteliers use when selling their hotel rooms. Rate
can be defined as maintaining consistent rates for the same product in
online distribution channels—Expedia, Orbitz, Hotwire, etc.—regardless
commission the OTA makes. Rate parity can ensure an even playing field
all channels and protects a hotel’s relationships with its partners, as
channel is being favored over another one. Rate parity can also allow a
to evaluate its partnership with an OTA within a given time frame and
them to make conclusions as to if and how the hotel should continue a
relationship with a given OTA.
Some would even
say that rate parity and rate integrity go
hand-in-hand. When a hotel effectively controls rate parity, rate
assured, as not only is there a fair ground among the hotel and its
travel agencies, online companies, distribution partners, and hotel
franchisors, the consumer can also be confident he or she is getting a
price and won’t be afraid of booking only to find there was a better
through another channel they were not aware of.
Hoteliers can achieve a rational rate structure with hotel revenue management technology. This type of software can enable hoteliers and hotel revenue managers to manage their room inventory and pricing by examining supply, demand, and competitor pricing in real-time. In addition to assisting a hotel in maintaining its rate parity and integrity, these revenue management systems can automatically make price adjustments, update online distribution channels, and place your hotel in the ideal OTA page position to optimize bookings. This will always ensure a fair price for the consumers while ensuring the hotelier is always making strategic and proactive decisions in order to guarantee they are running a profitable business operation.
Jean Francois Mourier is CEO & Founder of RevPar Guru, a company that has developed an alternative type of revenue management and real-time pricing solution (combined with automated online distribution) to help hotels maximize occupancy and increase their profits. The company’s Yield Dynamic Price Engine, an integrated revenue management and pricing solution, adds unprecedented power and real-time adaptability to the pricing process, leaving managers more time to run their hotels. You may reach him through www.revparguru.com or by calling +1.786.478.3500.
REVPAR GURU INC.
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Practices in Revenue Management, Part 3; Automation, Channel Management
and Decision Making / Jean Francois Mourier / September 2010
Practices in Revenue Management, Part 2; Rate discipline, the
leveraging of real-time information, and price prediction / Jean
Francois Mourier / August 2010
Practices in Revenue Management, Part 1; General revenue management and
strategic pricing / Jean Francois Mourier / July 2010
Irresistibility of the Obvious; How a new trend in revenue management
and metrics is missing the point / Jean Francois Mourier / July 2010
Beyond the Compset - And other new pricing strategies that really work
/ Jean Francois Mourier / June 2010
Tale of Two Strategies; Contrasting boutique and chain hotel revenue
management approaches / Jean Francois Mourier / June 2010
Pricing Is History, Well, Not Exactly; Examining the Role Historical
Pricing Should Be Playing in Hotels’ Pricing Strategies / Jean Francois
Mourier / May 2010
|Tipping Your Cap (Rate) - Why hotel owners need to pay attention to RevPAR / Jean Francois Mourier / April 2010|