Tips to ensure rate parity without breach of agreement
A simple solution for parity votes is an advanced revenue management tool; including fare shopping, fare optimization, channel distribution and online reputation management solutions. Not only do they arm a hotel to maintain its rate parity and integrity, these revenue management tools also make price suggestions, update online distribution OTAs, keep you up to date with your reviews and online presence, and place your hotel in a privileged place. on the OTA page to optimize bookings and ultimately increase revenue.
Practice of this kind always ensures a fair price for travelers while at the same time ensuring that the hotel is also making strategic and proactive decisions to run its hotel operation profitably.
This is where a state-of-the-art revenue management solution comes in. Hoteliers can realize a rational rate structure with a comprehensive hotel revenue management solution.
Modern hotel revenue management tools enable hotel revenue managers to manage their room inventory and pricing by studying supply, demand, and competitive pricing in real time.
However, there’s no reward in guessing why increasing direct bookings is a hotel’s ultimate goal. Hotels, to compete with their own distribution channels, are finding innovative practices to entice customers to book directly through their brand’s website or at the front desk.
In this article, we will discuss the approaches that hotel operators can use without going against their OTA agreements. By applying these Hotels they can increase their direct reservations without breaching rate parity agreements.
Smart hotel operators are finding ways to offer incentives that entice guests to book directly through their brand websites, customer service, or over the phone.
Below are some strategies that hotels can use without running afoul of their OTA agreements and parity issues.
Tactic #1 Offer special offers to selected customers
Parity agreements prevent hotels from publicly offering discounts; however, this restriction does not apply if the hotel does it for a selected audience, but make sure it is well covered.
For example, you can send discount coupons to your social media followers, let’s say you can offer discount codes only to your Facebook followers.
The second instance could be to offer a value-added package for vacations, or a special package for any big important event that is going to happen in your city, or a free transfer from the airport to the hotel, free parking, free breakfast and Wi-Fi. etc
These tricks will ensure that your room rate is never less than what the OTA is offering; however, the total value of the package will be much higher than the OTA room rate offer. In addition, it will also guarantee more business for the hotel during the event season.
Tactic #2 Stay connected with your regular customers
Stay in touch with your loyal customers with frequent deals and offers. Try different ways to stay in touch with your customer base, such as newsletters, blogs, discount offers, events and information about hotel festivals.
Also, hotels can share special offer information every month, just to instill confidence in your customers that you are offering them better rates.
Tactic #3 Keep your website updated
Usually, a hotel website seems to get the least attention when it comes to its ease of use and booking. Hotels need to focus on designing their website to be user friendly to get maximum bookings. The website should capture interest immediately and there should be a call to action such as “Book Now” and prominent phone numbers for the reservation. Smartphones and tablets are an important way to book hotel rooms. Hotels should have a mobile and tablet friendly website capable of accepting reservations and a button that will automatically call the hotel for the lead when pressed.
Hotels can lose a lot of reservations from the website because it is not as intuitive. A hotel website should be considered the most reliable and affordable booking source for customers.
Tactic #4 Offer incentives to loyal guests
Many hotels offer gift vouchers and discounts for their loyal customers. Hotels send out a mass email to their existing customer database and subscribers. This tactic over a period of time helps establish a loyal customer base and eventually more bookings.
Tactic #5 Get the most reviews and drive more website visitors
Modern travelers check reviews to evaluate hotels and see which property has the highest rating. This is your chance to drive customers to your website, instead of losing them to OTAs.
To generate maximum positive reviews, you need to spread the culture of customer delight in your hotel. You can also ask guests to write a review and offer discount coupons on their next visit. Post a sign at the front desk or in rooms that encourages guests to write reviews.
To keep their customers, hotel staff must respond to guest feedback, especially negative reviews. This shows that you value customer feedback and strive to work to provide better service.
Tactic #6 Design bundles of offers and fringe benefits
The bundled offer and add-ons are another way to offer discounts, without penetrating the parity contract.
To explain this further, a hotel may offer a package of $400 for a 4-night stay, vs. an OTA offer of $350, but offer perks like free pick-ups, Wi-Fi, breakfast, etc. Add-ons are a great way to persuade guests to book through your hotel website.
Tactic #7 Over the Counter Discount
The front desk is another direct point of contact with guests in addition to your brand’s website. Use this engaging face-to-face opportunity to give customers good reasons to engage with you directly. Offer any customer who comes via OTA a discount on their next direct booking through the hotel. This will establish confidence in the minds of the customers that the hotel offers lower rates compared to any OTA.
Tactic #8 Collaborate with OTAs for the best results
We have discussed the tactics that hotels can use to encourage customers to book through hotels. But this in no way implies that OTAs are competitors or adversaries of hotels. In fact, we would call them partners. Since they help you get amazing booking numbers. Involve your OTAs in your promotion plans; You might consider giving them additional benefits like additional inventory, etc.
For the benefit of the travel industry and community, we support a win-win situation for both hotels and OTAs. In addition, they can coexist in this environment benefiting each other.
