In the RateGain September 2016 report, the degree of rate parity performance observed for hotels in Europe (EUR) between their brand websites and the OTAs show variation by location.
- London maintained maximum parity with 62% in the 3-star hotel category, followed closely by Edinburgh, which emerged as the city practicing a 54% parity.
- In the 4-star and 5-star categories, Helsinki and Zurich showcased 70% and 40% parity, respectively.
- In the European market, Helsinki has the highest number of hotels promoting direct booking which is evident in the below report. It shows 80% of the hotels offer cheaper rates versus the rest of the market.
Hotels being cheaper on OTA sites is an interesting factor for hotels in Europe amidst the parity versus non-parity debate. In the leisure segment, at 100% and 79%, hotels in Venice are offering better rates on OTAs in the 3-star and 4-star categories, respectively, and in the transient segment, Helsinki hotels are at 100% when it comes to offering better rates on OTAs in the 5-star category.
Did you notice?
- Amsterdam and Rome are facing OTA dominance in better rates as most hotels there are preferring to sell on OTAs. The numbers are as high as 89% and 78%, respectively in the 5-star category.
- Cities like Venice (in 3 & 4-star category) and Zurich (in 3-star category) are thriving markets for meta-search engines. This data correlates with the fact that parity compliance is negligible because in September it is almost 0%.
According to industry statistics and our findings, there is a variance in disparities across Europe, the largest markets being Germany, UK, France, Italy and Spain, which have a proportionally lower disparity rate. A greater number of properties in these markets indicates that the dependence on OTAs for bookings is more in these regions.
In the heat map below, both Czech Republic and Slovakia display low undercut rates. At 17.2% and 4.0%, respectively these countries have less disparity when compared to the figures of Greece, Netherlands, Sweden. Hungary and Belgium.
Disclaimer: The above data is indicative in nature and RateGain can’t be held liable for its accuracy or usefulness for any purpose.
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