What rate parity is, and how to check it for your hotel

Rate parity means a room costs the same on every booking site as on the hotel's own website. When a booking site sells it for less, a guest who was ready to book with you books there instead, and you pay that site a commission on a booking that was already yours. You can check it yourself in a few minutes, as long as you compare like with like.

A OneHorizyn guide. Updated .

Why a booking site ends up cheaper

It is rarely because you gave that site a lower price. The usual reasons are:

  • The site pays for a discount out of its own commission, to win the booking.
  • The lower price is for signed-in members or for the site's app, and is shown to everyone on a price list.
  • A rate meant for travel agents or tour operators has been passed on and is being sold to the public.
  • The site shows a non-refundable price beside your flexible one, so the two are not the same offer.

Each has a different fix, so the first job is to find out which one you are looking at.

How to check it by hand

  1. 1Search for your hotel by name on Google and open its price list (Google Hotels), which shows what each booking site charges.
  2. 2Pick a night, with one room and two adults. A hostel checks one bed for one guest.
  3. 3Note your own website's price and each booking site's price for that night.
  4. 4Open the cheaper site's own page: the price on Google is a summary, and the booking page is what a guest pays.
  5. 5Compare the same thing: the same room, the same cancellation terms, the same meals, and tax in or out on both.
  6. 6Repeat for several nights, weekdays and weekends. One night proves little.

The step most often skipped is the cancellation terms. A non-refundable price that is lower than your flexible one is not an undercut, and chasing it wastes a favour with the site.

What to do when a site is cheaper

  • Save the evidence first: a screenshot of the site's booking page and of your own, for the same night, with the date you took it.
  • Write to your contact at the site with the nights and the screenshots, and ask for the price to be matched.
  • If the price comes from a rate you gave to agents or wholesalers, find which partner passed it on. The room name and the conditions on the page usually point to it.
  • Check again a week later. A price that is corrected for one night often comes back on the next.

How often to check

Prices move every day, so a check once a quarter finds only what happens to be wrong that morning. A check every week, across the coming month of nights, shows which site is cheaper and how often, which is what you need to raise it with them.

Questions

Questions hotels ask

Is a members-only price a parity problem?

Not always. A price shown only to signed-in members is a different offer from your public one. It becomes a problem when it is shown to everyone on a price list, where it looks like the site's ordinary price.

Should prices be compared with or without tax?

Either, as long as both are the same. Google Hotels and most booking pages show prices without tax, so comparing without tax is usually the simpler way.

Does rate parity mean every site must show the same price?

It means a guest should not find your room for less on a booking site than on your own website, on the same terms. Your own website being the cheapest, or offering more for the same price, is the aim.

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