Paritybusters
Every day we log in to our parity tools and we check if any website is underselling our property. We have already paid for a channel manager that distributes equal rates to all resellers but we notice discrepancies through third-party websites that we haven't cooperated and we have no clue how they got the rates.
These websites also known as metasearch websites are also resellers and they usually get rates through distributors such as bedbanks. They get to sell the same rates the hotel distributes to every partner they cooperate with. The websites are basically travel agents that get a commission of a sale. The difference is that they have a much lower operating cost than a traditional travel agent leading them to start experimenting with their commission.
The procedure is simple, metasearch channels get the rate from bedbanks, add their commission and they sell it online. When searching a hotel online, Google gives you all the selling options including all metasearch websites where usually the rate is lower. A lower rate often means, that the website "forgot" to push out the new rates, making the guest get to the final page with a last-minute rate change. A classic technique of attracting by lowballing rates that basically don't exist. However, the rate is sometimes real and guests find themselves with a lower rate than they can find in both the hotel website and the traditional OTAs
Devil's advocate: Why should hoteliers care since they getting their NET rate either way?
- They are losing traffic to their website with unfair tactics. Price parity is what creates a fair game in the online travel space, but lately, it's being disrupted.
- The metasearch websites have old content misleading the guest.
- Protect guests from rare but real scams websites that often appear from time to time.
We need OTAs to solve this
OTAs like Booking.com & Expedia could be our partners in this battle. If they solve online parity, then they will gain much more than the hotels themselves as guests are willing to book through less know websites just because of price. I can't imagine the volume that all these websites generate just because of online price wars.
Online parity has lost its way in the past years and we are battling with OTAs to create a fair game online but I think we should start with metasearch.
Agilysys
2 年One of the trickiest things about this is that the one of the only ways to find out who is actually at the bottom of it , is to buy a room and then go back to the supplier and face them down…..and then try and get your money back…. Something I spent alot of time doing in previous hotel roles.
Customer Success Manager @ Juyo Analytics
2 年Be bold and be ready to take hard desicions! That's the direction hotels should take in my opinion! First of all, make sure that parity issues isn't an outcome of your own wrong desicions.Your distribution should be correctly set up, always kept up to date, strategically and consistently promoting direct web. Invest in digital marketing. Work fairly with your partners but make it clear to them that parity is non negotiable. Prioritise your direct channel without competing only on lower direct price (which is natural loyalty by the way) BUT start selling added value(policies, services, experiences, offers, packages). It requires a change of mindset. Of couse we should work with OTAs and tecnology but we should mind our own business first and have strategy in place!
SK Hospitality Greece
2 年Thanks for sharing your though Konstantine ! We are all hoping one day tools like OTA insights will be able to "detect" the source of the metasearch feed. We are counting on Vasilis Riavoglou and team
I support people who are stuck or at crossroads, gain clarity to pursue their goals. With a positive mindset, I help people transform and thrive in a more passionate, exciting and fulfilling career.
2 年I agree Konstantinos that there is a big problem with online scammers and misspelling and yes, bringing in the big agencies to work together on this , is the solution. As a customer, I believe raising awareness is key!