RATE PARITY is DEAD ! WHAT ’ S NEXT ? TREVOR STUART-HILL IS PRESIDENT OF REVENUE MATTERS
O K , if rate parity isn ’ t completely dead , it is certainly on life support . So , what would the world look like for hoteliers if and when rate parity completely disappears ?
Win : Ability to offer lower
|
rates on less costly channels in order to shift channel mix and improve profit . But … will guests be willing to do extra research to book a particular property directly , and will independent properties be at a disadvantage compared to a large chain ? Does investing in meta-search exposure become paramount ?
Win : Receive more information about guests prior to arrival , enhancing their experience . But … would this require properties to increase advertising and technology
|
budgets to attract guests and subsequently keep track of their preferences and behaviors for remarketing purposes ?
Win : Become selective about what inventory types are sold through which channels and when . But … would this require tech investment for properties to know when and where their most profitable guests are shopping , and would this require a property to have the know-how to make compelling offers ?
Win : Turn off more expensive channels when demand
|
is high and turn them back on when demand is low . But … this assumes distributors would agree to this . And competitors that play ball with distributors year-round will likely be featured above your property during slower times .
Win : Have more control over merchandising and guest messaging . But … great property descriptions don ’ t count for a lot if your property doesn ’ t rank high in search results , so increased expenses and attention to e-commerce efforts would be required .
|