The degree of rate parity observed for hotels in the Middle East between brand websites and the OTAs show variation by location in the January 2017 report.
- Riyadh maintained maximum parity with a score of just 1% in the 3-star hotel category.
- In the 4-star hotel category, Cairo has the highest number of hotels preferring their own brand sites to OTAs. They are offering lower rates with a score of 67%.
|Cities Showing Highest Parity Compliance in ME||Cities Showing Highest Parity Violation in ME|
|Riyadh||3 Star||1%||Lima & Aman, Kuwait, Muscat, Abu Dhabi, Dubai||3 star||0%|
|Tel Aviv||4 Star||25%||Kuwait, Doha, Riyadh||4 star||10%|
|Tel Aviv||5 Star||22%||Amman||5 Star||0.1%|
Hotels violating parity is an interesting factor in ME, in the parity versus non-parity debate.
- In the 3-star category, hotels in Amman, Kuwait, Muscat, Abu Dhabi and Dubai show 0% parity. Hotels in these cities offer better rates on their respective brand Sites.
- 4-Star hotels in Cairo and Tel Aviv have scored 33% and 75%, respectively, as rooms in these cities are cheaper on OTAs, when compared to the brand websites.
Let us take a look at the parity tables (shown below) for 3-star, 4-star and 5-star hotels in LATAM.
Did you notice?
- 5-star hotels in Cairo and Tel Aviv prefer to sell more on OTAs; hence, these cities have scored 47%.
- In Beirut and Sharjah, not a single 5-star hotel is offering cheaper rooms on their own brand website! Hence, they have both scored 0%. Therefore, the parity scores of these cities is not as good as Tel Aviv and Cairo.
Rate Parity is important for hotels to maximise their revenue. Build a rate parity strategy to increase direct bookings, customer loyalty and reduced cost.