As we all know, maintaining rate parity plays a pivotal role in encouraging direct booking through a hotel website rather than a OTA or third party. But how big an impact does being out of parity have on the hotel industry?
SaaS company Triptease released some very interesting research yesterday suggesting that rate disparity in the hospitality industry could be costing hoteliers as much as $1Bn per annum.
Charlie Osmond, Chief Tease at Triptease comments:
“Disparity is a sinkhole, costing hoteliers millions. Policing and removing disparities has an immediate impact on direct bookings.”
Based on a global dataset of 33 million website searches, they discovered that on average, a direct hotel price is undercut by an OTA 23.7% of the time.
Check out some of their key findings in the infographic below or download their full report, which also breaks down rate parity issues by country/city, here.
OTAs Undercutting Hotels (Infographic)