Research increasingly indicates that disparity – the difference between quoted prices on hotels’ own websites and those shown by OTAs and other third-party channels – has been a headache for the vast majority of revenue managers.
That’s all about to end as a report by OTA Insight on the current state of parity where key early findings have already shown that more than half of hotel professionals still don’t feel in control of their parity.
The report, presented by OTA Insight co-founder Gino Engels (main picture), raised questions on how parity is perceived among hoteliers and where they feel they should be versus where they currently stand.
The key findings were:
• OTAs are more likely to be in parity with Major Chains than Independents and Local Chains. Market-wide, there are significant parity loss issues with Independents and Local Chains facing losses 52% of tracked shops in comparison to 45% for Major Chains.
• A significant majority of parity loss from OTAs was from rates displayed 5-15% lower than brand.com rates.
• Issues coming primarily from non-contracted OTAs being out of parity – 38% in the case of Major Chains and 46% of Independents and Local Chains – suggest that unauthorised OTAs are the biggest contributors to parity loss.
• The eSky.com platform is the most frequently tracked channel for parity loss issues across Independent and Local Chain hotels, and Major Chains across Europe.
Hotel parity – UK
The key findings were:
• OTAs are more likely to be in parity with Major Chains than Independents and Local Chains. Market-wide, there are significant parity loss issues with Independents and Local Chains facing losses 53% of tracked shops in comparison to 45% for Major Chains.
• A significant majority of parity loss from OTAs was from rates displayed 5-20% lower than brand.com rates.
• Issues coming primarily from non-contracted OTAs being out of parity, Agoda and Alpharoom are the most common offenders in the United Kingdom for Local Chains and Independents and Major Chains respectively.
Another key finding from the report, introduced by TD’s CEO Brett Henry at WTM last week, relates to the primary reasons hoteliers are giving for managing parity efficiently. For some, revenue management is the main driver; for others, it’s reputation protection.
But across the board, hoteliers agree that parity affects both the bottom line and brand reputation. This central finding underlines their desire to improve their parity management processes.
In this report, OTA Insight provide a full breakdown on parity in Europe and the key trends that are affecting the market. To download the full Hotel Parity Report click here.