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Maintain rate parity to maintain your brand image.

August 18, 2011

When you walk into a gadget store to buy a mobile, like most people, you will put in a fair amount of research before zeroing in on a particular model. One of the key factors that you would consider is the ‘price’. You most definitely will check the price of the mobile that you like at different stores as opposed to directly walking into a store and making an on-the-spot purchase. At times, the authorized mobile dealer may have a more competitive offer and at times, an all-in-one gadget store might offer you a better deal. It is but obvious that you will choose the store that gives you the best offer.

Similarly, when your guests are looking to book a hotel room, they are on the lookout for a deal that offers them the best price and the amenities to go with it. If your hotel maintains differential rates across all the distribution platforms, it not only reflects badly on your hotel’s integrity but will also cost you a number of prospective guests. Maintaining rate parity implies that all the distribution channels of your hotel should showcase the same rate for the same conditions for a particular room type. When you maintain rate parity, it strengthens customer loyalty and urges guests to book directly with the hotel. It ensures that your hotel is out there on the map with a certain sense of transparency that does not confuse your guests.

The online channel and its promotional tools are widely used to distribute a variety of rates designed to attract additional customers.



    Maintaining overall parity with all of the above distribution channels i.e. Online booking engine, Global Distribution System, Internet Distribution System and Online Travel Agents is a highly effective approach to maintain a healthy relationship with all of these channels as well as to develop your hotel’s own channel. There is enough scope online for all of these channels as well your hotel’s branded website to grow. It is imperative for you to ensure that you monitor any kind of disparities between self-owned channels and the distribution channels.

    The electronic distribution system today is uber dynamic and includes a vast number of players. The economic climate demands that you work on building an internet presence for your hotel. This means that you have to stay connected with all the distribution channels. This presence can be further justified when you maintain a uniformity of rates across all these distribution channels thereby inculcating a sense of confidence in your guests and finally encouraging them to make a booking.

    Follow the rate parity concept, and maintain a brand image for your hotel.

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