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Asia: Rate parity - the elusive dream which just got more elusive

June 25, 2009 | Hospitality Industry

Hotels claim they’ve got rate parity. After all, they’ve been working on it for years. But what’s the reality especially in the current market conditions? Has rate parity flown out of the window? This article discussed the hot topic with some hotel marketers in Asia-Pacific.

Frank Trampert, executive vice president, revenue generation of Carlson Hotels Worldwide-Asia, sees the challenge to rate parity as coming from the wholesale distribution channel, which accounts for about 35% of Carlson’s business in Asia Pacific.

“Many online wholesalers distribute rates through their own channels without the hotels’ knowledge. Those rates undercut the pricing structure and cause issues. Some good examples for well-known violators are AWD and Asiarooms. Everyone knows – only a few talk about it.

“In addition OTAs that are not connected to a CRS cause another opportunity for “leakage” once the hotel amends rates that are not automatically updated on those sites.”

Conceding therefore that “there may never have been rate parity”, Trampert said, “A lot of efforts were made over the past years to reduce the occurrences of non-parity. It would help if wholesalers would finally join the “technology” train and improve their backend systems to integrate with suppliers.”

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