While many accommodation providers accept that a rate parity strategy is best for their business, ot

Rate parity applies to a particular room type on a particular night. Although these rates may constantly change according to demand, american west airlines tickets applying rate parity dictates that no matter where customer chooses to shop for a particular accommodation choice online, they should find a consistent price at any one time. It is believed that consistency of tariff is gives an accommodation property's rates transparency, integrity and supports online reputation.
Although widely accepted by accommodation providers, using a rate parity strategy may work for some accommodation providers better than others. The trouble with rate parity is that it makes less sense if accommodation providers want to favour a particular channel american west airlines tickets (for example their own web site) and train guests to go there for the lowest price.
While many accommodation providers accept that a rate parity strategy is best for their business, others do so under sufferance as most OTA agreements dictate that rate parity must be applied. In order to list inventory on most mainstream OTAs to gain the benefit of targeted marketing initiatives and consumer brand loyalty, accommodation providers must undertake not to undercut elsewhere online. Is this fair enough?
After a two year investigation, Britain's Office of Fair Trading has provisionally ruled that the accommodation industry practice of rate parity and dictating minimum tariff to resellers american west airlines tickets is outside consumer law should be considered "price fixing."
I m glad this topic has finally come up. When a well established channel demands that a property rate parity (note this is the rate the consumer sees, not what the property receives) this is a blatant bully boy, anti-competitive (and therefore anti-capitalist) tactic. Consider a new channel entering the market (as described in the video), that wants to gain market share by offering a more attractive deal to the property (e.g. 5% commission rather than 10%). Is it really fair that an established provider insist that properties can not provide lesser rates through this channel? My advice to any motelier that feels that they are put under pressure by a channel for rate parity? Respond, american west airlines tickets How about I do what I like with my rates, I don t take you to court for anti-competitive practises and you never talk to me about this again?
I understand that in this case, the Intercontinental Hotels Group insisted that a minimum tariff be displayed on all OTAs (rate parity) as it didn t want a 3rd party provider to be seen to undercut its own sales channel. A complaint from a small online travel agent that it was being prevented by large hotel chains from offering discounts for room-only accommodation triggered the investigation. The bully boy in this case was painted american west airlines tickets as the hotel;-) But it does raise the wider issues of rate parity and I can see both sides.
"When I look at the ocean, I feel the greatness of man, I think of man's magnificent capacity that created this ship to conquer all that senseless space. When I look at mountain american west airlines tickets peaks, I think of tunnels and dynamite. When I look at the planets, I think of airplanes." - Ayn Rand 1943