The degree of rate parity observed for Latin American hotels between their brand websites and the OTAs show variation by location in the May 2016 report. Lima maintained 100% parity in the 3-star hotel category, while Panama City emerged as the city practicing maximum parity with 59% and 63% in the 4-star and 5-star categories, respectively. Interestingly in Sao Paulo, hotels are offering cheaper rates on OTA in 5-star category, the number being as much as 46%.
Hotels being cheaper on OTA sites is an interesting factor for hotels in Latin American amidst the parity vs non-parity debate. Rio De Janeiro being as high as 100% of hotels offering better rates on OTAs in 3-star category, while Bogota and Caracas, at 80% and 100% are following this pattern in 4-star and 5-star categories, respectively.
Did you notice?
- Rio De Janeiro is facing OTA dominance in better rates as most hotels there are preferring to sell on OTAs and the numbers being as high as 100%, 68% and 98% in the 3-star, 4-star and 5-star categories, respectively.
- Cities like Rio De Janeiro and Bogota (3-star category), Rio De Janeiro and Caracas (5-star category) with 0% parity are displaying the need for meta-searches for prospective customers to source out best deals.
Rate Parity is important for hotels to maximise their revenue. Build a rate parity strategy to increase direct bookings, customer loyalty and reduced cost.
The above data is indicative in nature and RateGain can’t be held liable for its accuracy or usefulness for any purpose.