Rate Parity Problem

07 August 2015

Rate parity is seen as an important strategy in regaining business from Online Travel Agents and it is being eroded by small and relatively unknown OTAs.

Right Revenue has conducted some research into the local Northern Ireland hotel market and discovered that many hotels are being listed for less than their own website rates. The problem is particularly highlighted in the new TripAdvisor Instant Booking system but also occurs elsewhere.

It appears that small OTAs such as Onoma, Otel, Cancelon, etc are taking nett FIT rates, marking them up slightly and then selling direct to customers through TripAdvisor. Most hotels do not even realise this is happening and it is more apparent in hotels with a strong reliance on FIT contracts.

It can be difficult to isolate which FIT companies are the culprits but if you use a marketing agencies, they might be a good place to start.

Several hotels are seeing a rise in FIT pick-up but at the expense of ADR.

Contact the office for more advice. 

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