Jun
10
Yesterday I met with some people from "a big online travel agent" (I promised not to name them).
Normally I save my best bile and vitriol for these people - in the past, they've asked for it.
Online travel agents have been largely responsible for leading hotels down the path of rate dumping. Although I'll admit that for their part, hotel managers must share some of that responsibility by simply not being smart enough when it comes to (a) marketing and (b) the internet.
But these people seem to have turned over a new leaf. They said lots of very enlightened things. They've got my attention.
Did you know that the term "rate parity" is bad?
Further, did you know that using "rate parity" could, in theory, get you into trouble?
Normally I save my best bile and vitriol for these people - in the past, they've asked for it.
Online travel agents have been largely responsible for leading hotels down the path of rate dumping. Although I'll admit that for their part, hotel managers must share some of that responsibility by simply not being smart enough when it comes to (a) marketing and (b) the internet.
But these people seem to have turned over a new leaf. They said lots of very enlightened things. They've got my attention.
Did you know that the term "rate parity" is bad?
Further, did you know that using "rate parity" could, in theory, get you into trouble?
"Rate parity" is bad, not because it causes the whole industry to copy each others' prices like small boys in a school exam.
No.
"Rate parity" is bad because it can be interpreted as price rigging.
I legal terms, they don't look at the fact that many hotels (and you know who you are...) drop prices to the floor because they can't sell rooms. Instead, they consider the fact that an insistence on "rate parity" is an insistence on having the same price as everyone else. That can be described as a cartel. And cartels can get you into trouble.
So instead, we are to use the term "best available rate".
The next time you're approached by some berk from an online travel agent who insists on "rate parity" - you know what to tell him.
No.
"Rate parity" is bad because it can be interpreted as price rigging.
I legal terms, they don't look at the fact that many hotels (and you know who you are...) drop prices to the floor because they can't sell rooms. Instead, they consider the fact that an insistence on "rate parity" is an insistence on having the same price as everyone else. That can be described as a cartel. And cartels can get you into trouble.
So instead, we are to use the term "best available rate".
The next time you're approached by some berk from an online travel agent who insists on "rate parity" - you know what to tell him.
0 Trackbacks