March 04, 2012

Rate Parity - Technology to support RevPar Growth...

Rate parity exists when the same rate structure for a hotel exists across all its distribution channels.

When a hotel effectively controls rate parity, rate integrity is assured and the consumer becomes confident in booking the hotel. Rate parity ensures an even playing field and is critical in protecting a hotel relationship with all its distribution partners, including hotel franchisors, meeting planners, travel agencies and online travel companies.

If your hotel decides to work with one OTA website and expect them to be effective in a competitive market, it makes sense to start working with as many websites as possible to gain maximum exposure.

If a consumer is visiting a dozen of OTA websites, and there is a different rate on every site, the hotel's integrity is put into question by the consumer. When a hotel's rate integrity is questioned it's very bad for business, for the hotel, the sales team and the website itself.

The key issue in rate parity today is ensuring the rules of certain websites markup structure are 100% understood and adhered so. Managing accurate and competitive rates is tough enough, but attempt to do so through 15-20 of different internet channels? Just imagine: logging into 15-20 of extranet everyday, each extranet having a different website address and login procedure to remember, with different markup methods, different standard room types, different ways to access and change rates, different contract terms, the tasks become boring, if not impossible for an e-commerce manager or revenue manager.

A question to ask to General Manager:
Where would you like to have your associate focus on?

i.e for hotels not using a channel manager:
3 Hours per day * 30 days = 90 Hours per month or 1,080 Hours per year, so nearly 6 months of work.

Today, hotels can obtain and manage increased internet exposure through hundred of websites, as well as maintain accurate and competitive Rate Parity through the use of a Channel Manager. There are over 10 great providers in the market.

3 hours of manual rate loading or 05-10 minutes with the system? Where would you like to be more efficient? loading rates manually or taking business sounds decision that create wealth of revenues for your hotel.

Some channel manager key functionalities:
- Modify prices,
- Modify availability,
- Modify minimum length of stay,
- Opening / closing of rooms,
- Compare prices with direct competitors,
- Overview of your availability and price positioning on various distribution channels,

RSVP Hospitality selections for effective Channel Manager Technology:
- Travelclick: EZ Yield
- Rate Gain: Channel Gain
- Lixto: Channel Manager
- Rate Tiger: Channel Manager


Romain @ RSVP-Hospitality





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