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Rate Parity vs. Rate Integrity—What is Rate Integrity?
Rate parity and rate integrity are both practices hoteliers use when selling their hotel rooms. Rate parity can be defined as maintaining consistent rates for the same product in all online distribution channels-Expedia, Orbitz, Hotwire, etc.-regardless of what commission the OTA makes. Rate parity can ensure an even playing field among all channels and protects a hotel's relationships with its partners, as no channel is being favored over another one. Rate parity can also allow a hotelier to evaluate its partnership with an OTA within a given time frame and allow them to make conclusions as to if and how the hotel should continue a business relationship with a given OTA.
Some would even say that rate parity and rate integrity go hand-in-hand. When a hotel effectively controls rate parity, rate integrity is assured, as not only is there a fair ground among the hotel and its partnering travel agencies, online companies, distribution partners, and hotel franchisors, the consumer can also be confident he or she is getting a fair price and won't be afraid of booking only to find there was a better rate through another channel they were not aware of.
Hoteliers can achieve a rational rate structure with hotel revenue management technology. This type of software can enable hoteliers and hotel revenue managers to manage their room inventory and pricing by examining supply, demand, and competitor pricing in real-time. In addition to assisting a hotel in maintaining its rate parity and integrity, these revenue management systems can automatically make price adjustments, update online distribution channels, and place your hotel in the ideal OTA page position to optimize bookings. This will always ensure a fair price for the consumers while ensuring the hotelier is always making strategic and proactive decisions in order to guarantee they are running a profitable business operation.
REVPAR GURU provides hotels around the world with an alternative revenue management software solution, designed to deliver maximum bookings and profits. As REVPAR GURU's custom-designed Yield Dynamic Price Engine is the only real-time revenue management software available on the market, it meets the rapidly changing needs of hotels in a very demanding business environment. REVPAR GURU's solution offers dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management and GDS sales distribution, to increase a hotel's RevPAR intelligently and effectively, while maintaining rate integrity and automated rate parity. Since 2004, REVPAR GURU's software solution has been used by hotels worldwide to increase occupancy and RevPAR. Headquartered in Miami, Florida, additional information can be found at www.revparguru.com or by calling +1.786.478.3500.
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